10 January 2023

Kropz Plc

("Kropz" or the "Company")

Update of Mineral Resource Estimate for Elandsfontein

Kropz Plc (AIM: KRPZ), an emerging African phosphate producer and developer, is pleased to announce an update to the JORC (2012) compliant Mineral Resource Estimate ("MRE") at its South African phosphate project, Elandsfontein Phosphate Project ("Elandsfontein"), following additional infill drilling, relogging of historical cores and mapping of ore exposures as intersected within the current mining horizon.

The previous resource statement was validated and published by SRK Consulting (Pty) Ltd ("SRK") in 2018, following their peer review of the resource estimate by Snowden Mining Industry Consultants (Pty) Ltd.

The geology at Elandsfontein was believed to be continuous with no major project risks or potential  flaws identified associated with the sampling, delineation, and estimation of the mineral resources by previous authors (SRK, 2018). In July 2022, mining operations intersected previously unknown and undefined indurated phosphatic (phoscrete) lenses colloquially referred to as 'hard bank'.

Based on current conditions and on-site learnings, not only from the mining, but also from the revised geological interpretations, it was considered prudent that the resource model be reclassified. The estimate needed to be brought in line with the level of confidence that reflected grade and physical properties and continuity (mining output and plant performance), as these aspects play a role in economic viability, and therefore associated reserve determination.

Summary

·   The updated MRE now caters for geotechnical characteristics of the ore in addition to the grade characteristics;

·      Increase in total phosphate resources at Elandsfontein to 106.58 million tonnes ("Mt");

·    Downgrade of much of the previously Measured resource to Indicated, and downgrade of previously Indicated resources to Inferred. Total Measured and Indicated resource tonnage has reduced by approximately 76%. The updated resource now considers core recovery, average drill hole spacing and sample count;

·     Grade has improved, with the refined lithological contacts and improved estimates from the infill drilling and pit sampling. This can also be confirmed from the current pit intersections; and,

·      Proven reserve of 7.31 Mt at 10.71% P₂O₅.

Mark Summers, Chief Executive Officer commented:

"While the downgrade of the Measured and Indicated resource is disappointing, it enables Kropz to move forward with a significantly increased level of confidence, that will allow for accurate and efficient mine planning.

"The increase in total resource, and more importantly, the increase in grade, supported by the additional drilling programme is excellent news, and the continued drilling planned for the year ahead will further increase confidence, and support an increase in reserve tonnes."

The revised resource estimate contains 30 additional sonic boreholes with recoveries above 90%. The additional holes have provided significant insight in terms of the geological interpretation, mineralised lithologies and data confidence. Differences are further seen in the elevation with regards to top contact of mineralisation. The 2022 modelling further utilised implicit modelling which creates additional refined contacts between lithologies. The optimised modelling has contributed to improved grades over the more accurately estimated areas and will improve planning in terms of anticipating mineralised horizons, and lithology types which are not always visibly distinguishable.

The 2022 reserve estimate was impacted by the reclassification of the resource estimate. Reserves are estimated at 17.42 Mt at a P₂O₅ grade of 9.19% of which 7.31 Mt is proven at 10.71% P₂O₅, where previously no proven tonnes were stated in 2018.

There is a 46 Mt difference between the 2018 and 2022 estimates, which is mainly due to the downgrade in the measured and indicated resource categories in the 2022 resource estimate.

Competent Persons Statement

Information in this announcement pertaining to Reporting of Sampling Techniques and Data, Exploration Results and Estimation and Reporting of Mineral Resources has been reviewed and approved by Vanessa Clark-Mostert, a Principal Consultant for Practara (Pty) Ltd, Golder House, Maxwell Office Park, Magwa Crescent, Building 1, West, Midrand, 1685, South Africa. The Company Registration number is 2015/217925/07.

Ms Clark-Mostert is registered with the South African Council for Natural Scientific Professionals, in the field of Geological Science, Pr. Sci. Nat. member No. 400161/07. She holds an MSc Earth Science Practice and Management, University of Pretoria, 2012, BSc (Honours) Environmental and Engineering Geology, University of Pretoria, 2002 and a BSc (Geology) from the University of Pretoria. Ms Clark-Mostert has more than 19 years' experience in the mining industry of which most of her working career included work as a consultant. Roles fulfilled which is pertinent to the style of mineralisation and mining method include Geological Consultant and Technical advisor. Parent Companies include Anglo American, Tronox, Richards Bay Minerals, TRG, TWP Investments, Phalaborwa Mining Company, General Nice Mining, Norilsk & BCL, Namakwa Sands, Assmang and Assore.

Ms Clark-Mostert is a 'Competent Person' as defined in the SAMREC Code which allows her to act as a Competent/Qualified Person.

Ms Clark-Mostert consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears. Ms Clark-Mostert confirms that the Company is not aware of any new information or data that materially affects the information included in the relevant market announcements, and that the form and context in which the information has been presented has not been materially modified.

The information in this release that relates to the Estimation and Reporting of Ore Reserves has been compiled by Mr Christopher Kuhl. Mr Kuhl is employed by Practara (Pty) Ltd as a Principal Consultant to perform studies and assignments related to Mining and Technical Advisory. Mr Kuhl is registered as a member with the South African Institute of Mining and Metallurgy. He holds a BSc Engineering (Mining) from the University of the Witwatersrand and a GDE (Mineral Economics) from the University of the Witwatersrand.

Mr Kuhl has more than 25 years' experience in the mining industry. Parent Companies include African Rainbow Minerals and Assore, Jubilee Platinum, Cheetah Mining, Sail and Anglo American.

Mr. Kuhl consents to the inclusion in this report of the contained technical information relating the Ore Reserve Estimation in the form and context in which it appears. Mr Kuhl confirms that the Company is not aware of any new information or data that materially affects the information included in the relevant market announcements, and that the form and context in which the information has been presented has not been materially modified.

Glossary

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For further information visit www.kropz.com or contact:

About Kropz Plc

Kropz is an emerging African phosphate producer with projects in South Africa and in the Republic of Congo. The vision of the Group is to become a leading independent phosphate rock producer and to develop into an integrated, mine-to-market plant nutrient company focusing on sub-Saharan Africa.

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