3 March 2023

Mercantile Ports & Logistics Limited

("MPL" or the "Company")

Karanja Facility Contract

Mercantile Ports & Logistics Limited (AIM: MPL) which is operating and continuing to develop a port and logistics facility in Navi Mumbai, Maharashtra, India, is pleased to announce that its subsidiary, Karanja Terminal & Logistics Private Limited ("KTPL"), has signed a three-year agreement with Rudra Marine Services ("RMS") for handling of various liquid commodities at the Company's facility at Karanja.

Under the terms of the agreement, MPL will provide non-exclusive berthing to vessels of RMS for loading/unloading operations and a one acre plot to develop liquid tankage, which will be undertaken by RMS. As part of its scope, RMS will be responsible for arranging vessels for transportation of liquid commodities such as base oil, edible oil and bitumen, handling operations and for setting up of three tanks over land leased from MPL. Commercial operations are expected to begin in Q2 2023, with initial volumes of approx. 14,000 MT per month, which is expected to ramp up to approx. 36,000 MT per month over the term of the contract.

Performance under this contract will be subject to final volumes but, in due course, this contract is expected to generate revenues of approximately £0.5 million per annum for the Company and, importantly, is another new cargo type and revenue stream for the Company. This contract follows closely on the recent announcement of the Company's handling of its first containers and the Company will continue to pursue its strategy to deliver new revenue lines for the facility at Karanja.

Jay Mehta, CEO of MPL said, "This contract sees us making further progress on our goal to embed Karanja into the regional infrastructure system. It also demonstrates Karanja's multi cargo capabilities and our Facility's ability to attract customers across the trading spectrum. We are pleased to be working with RMS for the next three years."

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