Mercantile Ports & Logistics Limited

("MPL" or the "Company")

Update - MPL Pursues Full Debt Redemption and Intensifies Legal Action to Recover Karanja Asset

Mercantile Ports & Logistics Limited (AIM: MPL), which is operating and continuing to develop our port and logistics facility in Navi Mumbai, Maharashtra, India, confirms that it continues to actively pursue all available legal remedies to regain control of its wholly owned asset, Karanja Terminal & Logistics Pvt. Ltd. ("KTPL").

As previously announced, the Company had reached agreement for a one-time settlement with the consortium of banks which at the time held the Company's debt. Despite the Company following due process, this settlement was arbitrarily annulled as one of the banks did not sanction it. The Company therefore commenced legal proceedings to protect its asset.

Since that time, the Company has formally offered to redeem 100 per cent of its outstanding debt before the Supreme Court of India, demonstrating its unequivocal commitment to honour all financial obligations and protect stakeholder value. The Supreme Court has directed the Committee of Creditors ("CoC"), led by Prudent ARC Ltd, which now holds the Company's debt, to consider the Company's proposal under Section 12A of the Insolvency and Bankruptcy Code. This was filed pursuant to the National Company Law Appellate Tribunal's Order. Despite the passage of a significant period of time, the CoC is yet to consider or take any action to implement the proposal. The process has not progressed in a manner consistent with the timeline, or the intent, of Section 12A.

The Company also notes that two separate resolution plans have been submitted, by third parties, to the CoC to acquire the asset through the insolvency process. MPL believes these developments further underscore its long-standing concerns that the process appears to have been conducted in a manner intended to transfer the asset away from the Company and its international shareholders. The Company further notes that the CoC is considering third-party resolution plans, notwithstanding the availability of MPL's proposal which provides for full repayment of amounts due to financial creditors. MPL believes that this raises important questions in relation to the processes' integrity, transparency, and the treatment of international investor capital.

On 6 April 2026, MPL approached the National Company Law Tribunal, Mumbai, seeking expeditious disposal of the Company's proposal under Section 12A. The Court has directed the CoC to convene a meeting with the Company to consider the proposal, which sets out the repayment of the full amount due to the Company's financial creditors. The Bench duly noted that despite pending proposal of the Company, the CoC is proceeding to vote on resolution plans. Accordingly, the Court has opined that the consideration of the Company's proposal should be done with due exercise of commercial wisdom of the CoC and not merely as an empty formality.  The meeting in this regard has been set for Friday 10 April 2026 in New Delhi and the Company expects to update shareholders and stakeholders after the meeting.

Importantly, MPL has executed an agreement with a leading international oil and gas company,  amongst others, which has committed to invest a significant part of the amount required to redeem the outstanding debt in full, as well as offering funds for the future development of the project. In parallel, the Company has received strong support from investors both in the UK and internationally to participate in a full refinancing of the debt in order to restore the asset to MPL ownership and future business operations.

Over the past 15 years, MPL has deployed approximately £160 million of predominantly international equity capital into the development and operation of the Karanja facility, navigating prolonged regulatory delays and infrastructure challenges. The Company has also serviced interest obligations broadly equal to the principal amount disbursed, despite delayed revenue generation caused by factors beyond the Company's control.

MPL reiterates that KTPL has never been operationally insolvent and remains revenue generating. MPL believes its proposal represents a clear and direct route to full recovery for financial creditors and maintains that the current situation reflects a failure of the process rather than any underlying financial incapacity.

Pavan Bakhshi, Managing Director of MPL, commented:

"We continue to be proud of the support we received from international investors to fund MPL on the London Stock Exchange and to build key infrastructure in India.

We have presented a comprehensive and credible proposal to fully redeem the debt and repay all outstanding financial creditors. It is difficult to understand why the proposal has not been considered and implemented in a timely manner. We will continue to fight to retain our asset, restore it to operational success and protect stakeholders' interests. Anything other than this would be a travesty.

We remain confident of a positive outcome and look forward to providing a further update soon."

For further information, please visit www.mercpl.com or contact:

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation ("MAR") EU no.596/2014. Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.