Centrex : Half Year Report and Accounts

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ASX ANNOUNCEMENT

18 March 2022

Half Year Report

Centrex Limited (ASX:CXM) ("Centrex" or the "Company") encloses its revised Half Year Report which was originally lodged with the ASX on 16 March 2022.

Due to an administrative error identified by the Company, the last page of the Notes to the Report (page

1. and the Director's Declaration (page 22) were inadvertently removed when inserting the Auditor's
   Report. The missing pages have now been included.

This ASX announcement has been approved and authorised for release by the Board of the Company.

For further information please contact:

Robert Mencel	Jonathan Lindh
Managing Director	Company Secretary
Centrex Limited	Centrex Limited
Ph [phone]	Ph [phone]
For media enquiries, please contact:
Grant Law
Grant Law Public Relations
Ph (61) 488 518 414
Email - [e-mail]

Centrex Limited ACN 096 298 752 - 44 Waymouth St. 6FL, Adelaide, SA, 5000 - www.centrexlimited.com.au

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Interim Report

For the Six Months Ending

31st December 2021

pg. 2

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Contents

Directors Report - Review of Operations	3
Lead Auditors' Independence Declaration	9
Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income	10
Interim Consolidated Statement of Financial Position	11
Interim Consolidated Statement of Changes in Equity	12
Interim Consolidated Statement of Cash Flows	13
Notes to the Interim Consolidated Financial Statements	14
Directors' Declaration	22
Independent Auditor's Report	23

pg. 3

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Director's Report

For the Six Month's ending 31st December 2021

The Directors present their report together with the consolidated interim financial report of Centrex Limited ("Company") and its controlled entities ("Group"), for the six months ended 31st December 2021 and the auditor's review report thereon.

1 Principal Activity

The principal activity of the Group during the reporting year was exploration on the following areas:

• Phosphate project development in Queensland;
• Potash exploration in Western Australia; and
• Base metals exploration in New South Wales.

2 Review of Operations and Financial Results

Outlined below are the operational activities undertaken by the Group to 31st December 2021.

2.1 Corporate

On 1 September 2021, the Company announced that the Company's CEO, Robert Mencel had successfully completed his probationary period, and following this, the Board decided to appoint him in the role of Managing Director.

On 11 October 2021, the Company launched Agriflex as its market-facing agriculture brand. The Company formally changed the name of its 100% owned subsidiary Centrex Phosphate Pty Ltd (ACN 132 019 357) to Agriflex Pty Ltd. The Company was successful in gaining shareholder approval at its November Annual General Meeting to remove the word 'Metals' from its name and became Centrex Limited.

On 21 October 2021, the Company announced that its 100% owned subsidiary Agriflex Pty Ltd had executed a conditional Term Sheet with Samsung C&T. The Term Sheet outlines Agriflex's appointment of Samsung C&T as its sole and exclusive marketing representative for sales into Korea, Japan, Indonesia, India and Mexico. The initial term of the Term Sheet is for the first 3 years of production from the Full Commercial Plant for Agriflex's planned 800,000 tonnes per annum Ardmore Phosphate Project.

On 28 October 2021, the Company announced that it has received binding commitments for a share placement of approximately 44.4 million new fully paid ordinary shares from professional and sophisticated investors at an issue price of A$0.09 per share to raise A$4M (Placement). The Placement attracted strong demand from new professional and sophisticated investors, including certain existing holders of the Company.

On 25 November 2021, the Company announced that Agriflex had reached a new agreement with Southern Cross Fertilisers Pty Ltd (SCF) regarding various matters in dispute in the Royalty Deed.

As part of the settlement, SCF agreed to extend the extension period under the Royalty Deed by a further 12 months to 27 June 2022 in return for Agriflex paying SCF A$1m and increasing the Royalty payable to SCF under the Royalty Deed from 3% to 3.5% (except during calculation periods where the

CENTREX LIMITED		Level 6, 44 Waymouth Street	T [phone]	ABN 97 096 298 752
		Adelaide, South Australia 5000	F [phone]	W W W . C E N T R E X L I M I T E D . C O M . A U

pg. 4

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average Morocco 72% BPL FOB phosphate benchmark is less than US$150 per tonne where the royalty will remain at 3%).

In addition, Agriflex and SCF have agreed to increase SCF's first right of refusal over Ardmore's available production under the Royalty Deed to 30% from the original 20%.

The parties have also agreed to negotiate with a view to SCF agreeing to the future subordination of its security interest to a financier on the terms acceptable to SCF, in return for Agriflex providing and maintaining an unconditional A$15m Bank Guarantee in favour of SCF as security for any future payment obligations of Agriflex to SCF under the Royalty Deed, in addition to SCF retaining a position as second ranking mortgage holder.

The Company also announced that Agriflex had appointed leading independent finance advisory firms BurnVoir Corporate Finance ("BurnVoir") and Naust Capital ("Naust") as joint financial advisers to arrange financing for the development of the Ardmore Phosphate Project.

BurnVoir and Naust will work with Centrex to secure an attractive, flexible funding package for the development of the Project. BurnVoir and Naust have developed a strong reputation for arranging equity and debt financing for greenfield mining projects, including working with export credit agencies and government agencies such as the Northern Australia Infrastructure Facility.

Phosphate rock prices during the half year reached their highest levels since early 2013. The FOB North Africa (68-72% BPL) benchmark reached a price of US$176.5 per tonne during the December Quarter (World Bank Commodities).

The second half of 2021 saw phosphate rock prices experience their largest increases since 2008, with the price now at their highest nominal levels in eight years. High phosphate rock prices continue to be supported by strong demand and the restricted supply of Chinese fertilisers and the recent conflict in the Urkraine. The World Bank releases updated pricing in the first week of every month.

The Company's updated Definity Feasibility Study (DFS) in August 2021 used a benchmark phosphate price of US$125 per tonne. After factoring in Centrex higher grade of 34.5% this equated to US$135 per tonne. The current US$172.10 per tonne benchmark phosphate price represents a 38% increase compared to US$125 benchmark price used in the August 2021 DFS.

2.2 Ardmore Phosphate Project, QLD

In August 2021, the updated Definitive Feasibility Study (DFS) confirmed Ardmore Phosphate Rock Project's profitability and robustness.

• Project Net Present Value (NPV) of A$207m using a 7% discount factor
• Pre-taxIRR of 52% and a payback period of less than 2 years.
• Project gross revenue of A$1.453 bn, total cost A$965m and free cash of A$429m.

In August 2021, the Company announced that an initial shipment of its phosphate rock had been transported to the East coast for use as a direct application fertilizer following a successful crushing trial.

Whilst the majority of the mine's future product is intended for the phosphatic fertiliser production market, an initial 27,000 tonne parcel has been made available to farmers for use as direct application phosphate rock.

CENTREX LIMITED		Level 6, 44 Waymouth Street	T [phone]	ABN 97 096 298 752
		Adelaide, South Australia 5000	F [phone]	W W W . C E N T R E X L I M I T E D . C O M . A U