Ikwezi Mining Limited completed the initial box cut at its Kliprand colliery and recently mined its first coal. This represents an important milestone for the company in commercialising the operations. The initial focus of the operations will be on the sale of run of mine (ROM) coal, which has been crushed and screened. Sales will commence on a Free-on-truck ("FOT") basis, to minimise the company's risk and working capital requirements. Once production has stabilised, the company will evaluate the option of bringing the wash plant into operation along with obtaining the rail and port linkages. This will provide options for the sale of ROM coal /washed product either locally or onto the export market, dependent on the market conditions. The estimated funding requirements under the current operational mining plans are now estimated at AUD 6.0 million. In order to continue with the plans to operationalise the mining activities at Kliprand Colliery, the Company has obtained an additional short term loan facility of ZAR 10.5 million (approx. AUD 1.0 million) from Osho SA Coal (Pty) Ltd. (Osho), a related party. The facility will attract an interest rate of 10% p.a. on amounts drawn down under the facility and is repayable on or before 31 October 2019. To date, the Company has obtained three short term loans from Osho, aggregating ZAR 30 million (approximately AUD 3 million) as a bridging facility to allow the company to bring the Kliprand colliery into production. ZAR 9.5 million with repayment due on or before 31 August 2019; ZAR 10.0 million with repayment due on or before 30 September 2019; and ZAR 10.5 million with repayment due on or before 31 October 2019. As previously announced, the Company intends to proceed with a renounceable entitlement issue of approx. AUD 6 million over the next few weeks. The company has received an in-principle support from one of its shareholders to fully underwrite the planned renounceable entitlement issue. Portion of the proceeds raised under the renounceable entitlement issue will be used to repay the amounts drawn down under the three short term loan facilities from Osho.