Contango Holdings Plc / Index: LSE / Epic: CGO / Sector: Natural Resources

5 December 2022

Contango Holdings Plc

("Contango" or the "Company")

Non-Binding Memorandum of Understanding signed with a leading Multi-National Company

Contango Holdings Plc is pleased to announce it has entered into a non-binding Memorandum of Understanding ("MOU") with a leading Multi-National Company ("MNC") with respect to the Company's Muchesu Coal Project, the in-country name of the Lubu Coal Project, in Zimbabwe.

This MOU outlines a framework for collaboration across not only coking coal, but also in the manufacture of coke and follows several site visits and a preliminary analysis of a 50kg sample of Muchesu washed coking-coal. The intention is to undertake a stage-gated due diligence exercise which will look at all aspects that would underpin either a coking-coal offtake agreement, or the possibility of establishing a coking plant adjacent to the Muchesu Mine. Based on current timelines, the Company would aim to conclude the first phase (concept / pre-feasibility) of the due diligence exercise in Q1 2023 after which a decision will be made if, and how best, to proceed to the subsequent phases.

Carl Esprey, Chief Executive Officer of Contango Holdings, said:

"The signing of this MOU is hugely material for Contango. The MNC is active in Zimbabwe and is a world leader in its field. I believe their interest in the Muchesu Coal Project is testament to its highly attractive characteristics, both in terms of scale and coal quality.

"The due diligence process is underway, and one of the first steps has been to deliver a 1t coking-coal sample to the MNC for further testing. The ongoing discussions are focussed on the viability of a long-term offtake and the potential of a joint venture partnership in establishing coke batteries and developing an underground mine.

"Given that Muchesu has a +2bn tonne resource there is plenty of scope for multiple offtakes across our whole suite of coal products - the MOU does not focus on thermal coal for instance.

"I look forward to updating the market on further progress."

**ENDS**

For further information, please visit www.contango-holdings-plc.co.uk or contact: