Shumba Energy : QUARTERLY MARKET UPDATE – 30 JUNE 2023 AND APPENDIX 8A- MINING COMPANY QUARTERLY CASH FLOW UPDATE

Suite 204

Grand Baie Business Quaters

Chemin Vingts Pied

Grand Bay, 30529

Republic of Mauritius

(A public company registered in the Republic of Mauritius - Company No. 111905 C1/GBL)

QUARTERLY MARKET UPDATE - 30 June 2023

Shumba Energy Ltd ("Shumba" or the "Company") is an energy development company based in Botswana and listed on the Botswana Stock Exchange (BSE: SHUMBA). The Company offers the advantage of being based in a country with the best credit rating in sub-Saharan Africa with a stable fiscal and political setting.

Established in 2011, the company is reaching its development objectives and controls a significant portion of advanced energy projects in Botswana. Shumba is developing a portfolio of Projects servicing energy poor Southern Africa with emphasis on state-of-art technology deployment and low impact emissions. For Shumba "Powering the Future" means addressing the growing power deficit in the face of collapsingutility companies in the region and supplying energy to affected southern African countries in a sustainable and cost-effective manner.

The Company's main activity areas include development of production andtrading/export of thermal coal, near term generation of renewable energy, medium term generation ofbaseloadenergy from 'HELE' (High Efficiency Low Emissions) thermal power plants, and medium-long term production of Liquid Fuels using state-of-art STL (Solids to Liquids) technologies with experienced partners.

Shumba Energy has several energy assets in the advanced development stage as follows:

TATI SOLAR PV PROJECT - Ownership:80%

Our flagship 100 MWp solar PV project, situated near the city of Francistown, Botswana, is progressing towards the crucial stage of financial closure. We remain cautiously optimistic about achieving this milestone by the end of the second quarter of Fiscal Year 2024 (December 2023). We plan to issue the Request for Proposal (RFP) to the shortlisted EPC contractors in the middle of the first quarter of Fiscal Year 2024 (August 2023). This timeline will facilitate the selection of the preferred contractor, finalization of the capital investment, and achievement of financial close.

In light of the regional energy crisis, we are making concerted efforts to ensure that the project becomes operational as swiftly as possible. Our current estimation for project completion is the third quarter of Fiscal Year 2025 (January 2025). This is the point at which we anticipate unlocking significant value for the company.

The Tati project has garnered considerable positive sentiment, attracting substantial interest from capital providers. Consequently, we are already envisioning Phase II of the project and engaging in ongoing discussions with potential funders and likely industrial-scale energy consumers.

Expenditures

The project development expenditures for the quarter were as follows;

All figures in USD
Description	Expenditure
Site Development	60 450
Technical Consulting	28 750
Legal	-
Insurance	-
Financial Advisory	-
Accounting & Auditing	14 800
Other Development Costs	36 930
Land Leasing	-
Total	140 930

SECHABA PROJECT - Licenses: Prospecting License 053/2005 & 218/2016; Ownership: 100%

Shumba Energy holds 100% in the Sechaba Natural Resources Proprietary Limited ("Sechaba"), which owns the Sechaba coal mining project situated in the Morupule coalfield in Botswana. The project's prospecting license, PL218/2016 is valid until 30 September2024. The company is actively involved in discussions with potential investment and operating partners to complete the necessary development in preparation for application for a mining licence to commence with project execution and mining based upon already completed studies and approved ESIA and is awaiting the land rights award for the surface infrastructure to enable issue of the mining right.

The projects targeted optimal solution is to develop a 2 x 150MWp 'HELE' circulating fluidized bed coal fired power plant known as the Sechaba Independent Power Producer Project ("SIPPP"). The company is in positive discussions and negotiations with well-funded parties who understand the regional business case for further development of Coal Fired HELE power plants for adding base-load powerinto the grid. The company expects to make further definitive announcement in this regard by the end of the 2023 Calendar year.

MORUPULE SOUTH RESOURCES PROJECT - License: Prospecting License 121/2010; Ownership: 97.5%

Morupule South Resources Limited ("Morupule South") holds the exploration licenses over the Morupule South Project situated in the central eastern district of Botswana immediately south of Morupule Coal Mine with the prospecting license, PL121/2010 valid until 30 September 2024.

The project lies within the hub of the extensive power transmission grid, with a new 440kV connection node having been installed within the area. The first Mine is planned on an area circa one quarter of the licensed rights on the shallowest part of the resource amenable to Open pit mining.

The company is working actively with an interested party to complete the necessary development of the license in preparation for a bulk sample extraction of 500kt of saleable Thermal Coal under the prospecting permit as a precursor for the application of the full mining license.

Discussions are continuing with at several parties with serious interest in developing the project for further base-load power generation to be added for cross border supply to ease the SADC regional and growing netpower deficit. As in the case of Sechaba the company expects to make further definitive announcement in this regard by end of the calendar year (Dec 2023).

TWO MABESEKWA PROJECTS - License: Prospecting License 428/2009; Ownership: 65% & 80%

The Mabesekwa project area contains two elements, the Mabesekwa No.1 Mine and Independent Power plant to be developed within subsidiary Kibo Energy Botswana Pty Ltd (65% owned) and the Mabesekwa No.2 Mine and associated Coal to Liquids Plant to be developed under the subsidiary Coal Petroleum Ltd (80% owned).

The Mabesekwa Export Independent Power Project ("MEIPPP") is planned to be a 600MWp mine-mouth power plant configured as a 4x150MW 'HELE' coal fired power plant with a minimum 25-year operating life with ability to expand development to 1200MWp.

The Mabesekwa No.2 Mine is planned to be developed to feed the Coal to Liquids (CTL) Plant facility to produce up to 30,000bpd clean burning liquid fuels and associated petrochemical by-products. The company continues to engage with major petrochemical companies with respect to products offtake and distribution across the SADC regional markets, and Botswana Oil Corporation who have re-entered the playing field with a proposal for a majority supported Government initiative to make Botswana self- sufficient in liquid fuels

The quarterly reporting to the department of mines is as follows;

All figures in USD

	PL053 & PL218			PL428		PL121
		Direct			Direct
Direct Expenditure		Expenditure			Expenditure
Drilling	-	Drilling	-		Drilling	-
Geotechnical	-	Geotechnical	-		Geotechnical	-
Environmental	-	Environmental	-		Environmental	-
Consulting	-	Consulting	-		Consulting	-
Total	-	Total	-		Total	-
Indirect		Indirect			Indirect
Expenditure		Expenditure			Expenditure
Salaries and		Salaries and			Salaries and
Wages	16 255	Wages		8 128	Wages	16 255
Travel &	-	Travel &		-	Travel &	-
Accommodation	Accommodation		Accommodation
Administrative	12 479	Administrative		6 240	Administrative	12 479
Costs	Costs		Costs
Financing Costs	178 196	Financing Costs		89 098	Financing Costs	178 196
Total	206 930	Total		103 466	Total	206 930

Additional Information:

• The development activities per license and money used per activity in the quarter is disclosed in the table herein above. It is to be noted that prudently the company continues to limit external project development expenses in favour of continuing as much work as possible utilising internal resources of its professional experienced employee team.
• The quarterly cash flow update is attached herewith.
• The abridged unaudited financials for 2022 ended 30th June 2022 were published in September 2022 and the final audited financials are well progressed and we expect them to be published at the earliest.

By order of the Board

This Announcement is issued, in compliance with the Botswana Stock Exchange Equity listing requirements and pursuant to Section 87 of the Securities Act 2005, Rule 5 of the Securities (Disclosure Obligation of Reporting Issuers) Rules 2007.

The Board of Directors of the Company accepts full responsibility for the accuracy of the information contained in this Announcement.