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

13 February 2025

Contango Holdings PLC

("Contango" or the "Company")

Receipt of Additional Royalty Payment

Contango Holdings Plc, a company focused on unlocking value from the +2 billion tonne Muchesu coal project in Zimbabwe ("Muchesu"), is pleased to confirm it has now received a further royalty payment of US$300,000. This brings the total royalty receipts to date under the previously reported Mineral Royalty Agreement ("MRA") with Huo Investments (Pvt) Limited (the "Investor") to US$500,000. The balancing US$500,000 payment under the previously reported US$1,000,000 is expected to be made later this month.

As previously reported, the Company is entering into a series of agreements with the Investor, including the MRA, a Revolving Facility Agreement of US$20,000,000 ("RFA"), as well as entering into a change of ownership of Monaf Investments (Private) Limited, the subsidiary that holds the Muchesu Project (collectively the "Definitive Agreements"). The Company is targeting signing the final Definitive Agreements in the current quarter, although as previously noted the Investor commenced material investment under the RFA during the second half of 2024 (see RNS of 31 October and 29 November 2024) and has also commenced payments under the MRA.

In addition, following the publication of a Short Form Prospectus ("SFP") in January 2025, the Company has completed the previously reported US$2,000,000 Subscription with the Investor, who is now the largest shareholder of the Company with an interest of 20.42%.

Carl Esprey, CEO Of Contango, commented:

"This additional royalty payment from the Investor under the proposed MRA further strengthens the Company's capital position and continues the highly collaborative relationship. Following the end of the Chinese New Year celebrations and return of key personnel to Zimbabwe we look forward to finalising the remaining outstanding documentation for the Definitive Agreements and bringing the broader transaction to a successful conclusion."

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

**ENDS**