Monaf Investments (Private) Limited and Contango Holdings PLC have entered into a mineral royalty agreement (the "Mineral Royalty Agreement"), which will become effective immediately following the disposal of the Company's 51% interest in Monaf and the waiver/cancellation of the mineral royalty agreement entered into between Monaf and the Company in favour of Consolidated Growth Holdings Limited on 24 July 2020. Royalties will be awarded on gross production at Muchesu, for the life of mine, as follows: USD 2 royalty per tonne in relation to thermal coal production - USD 4 royalty per tonne in relation to industrial coal production and USD 8 royalty per tonne in relation to coking coal production (collectively the "Production Royalties"). Production Royalties are to be paid to the Company on a monthly basis in arrears.

The Mineral Royalty Agreement also confirms the Company will be paid a minimum of USD 2 million per annum, irrespective of the level of production following an initial 6-month holiday.