TRUSTCO GROUP HOLDINGS LIMITED - Cautionary Announcement: Diamond Producer to Provide Funding to Scale Meya Mining to Over 1 Million Carats Per Annum

Cautionary Announcement: Diamond Producer to Provide Funding to Scale Meya Mining to Over 1 Million Carats Per Annum

TRUSTCO GROUP HOLDINGS LIMITED
Incorporated in the Republic of Namibia
(Registration number 2003/058)
Registered as an external company in South Africa
(External registration number 2009/002634/10)
NSX share code: TUC
JSE share code: TTO
OTCQX share code: TSCHY
ISIN Number: NA000A0RF067
(“Trustco” or “the Company”)

CAUTIONARY ANNOUNCEMENT: FIRST TIER GLOBAL DIAMOND PRODUCER TO PROVIDE FUNDING
TO SCALE MEYA MINING TO OVER 1 MILLION CARATS PER ANNUM THROUGH USD 150 MILLION
INVESTMENT

Trustco Shareholders (“Shareholders”) are referred to the Company's unaudited condensed
consolidated interim results for the six months period ended 31 March 2021 published on 30 June
2021 in terms whereof it was advised that the Company's subsidiary, Meya Mining (“Meya Mining”),
was capitalised sufficiently to produce at least 10 000 carats per month, being circa 120 000 carats per
annum from Q1 of 2022, whereafter production is set to increase up to 30 000 carats per month, being
360 000 carats per annum.

Trustco Resources (“Trustco Resources”), a subsidiary of Trustco, owns 65% of Meya Mining. The local
Sierra Leonean partner Germinate SL Limited (“Germinate”), holds the remaining 35%.

Trustco has during the past 5 years, invested approximately USD 115 million into the resource
establishment and development of Meya Mining. At an average exchange rate of USD 1 to ZAR 15.55,
the ZAR equivalent investment is ZAR 1.848 billion.

On the basis of independent geological studies and production achieved thus far, the Trustco Board
views Meya Mining as one of the premier investments that the Company has ever executed on outside
of Namibia. It considers the Meya diamond resource as a world class asset.
Shareholders are also referred to the announcements published on SENS dated 10 November 2017
and 21 December 2017, when the 476.89 carat Meya Prosperity diamond was discovered shortly after
exploration commenced. The Meya Prosperity diamond was thereafter sold (rough) for USD 16.5
million, by applying the same exchange rate as above, at approximately ZAR 256.5 million. At the
time, it was reported as the 29th largest diamond ever discovered globally.

Shareholders are referred to the SENS announcement dated 8 March 2019 where it was confirmed
that up to that date, 27 776.10 carats were sold at an average value of USD 881.71 per carat, which
included the Meya Prosperity diamond. Comprehensive information about the Meya Mining
operation is contained in Trustco’s previous Integrated Annual Reports.

Shareholders are advised that following a technical and geological due diligence at the Meya Mining
operations during July 2021, Trustco and Germinate received a written offer from a first tier global
diamond producer for USD 150 million (applying the same exchange rate ZAR 2.332 billion) as a debt
facility to scale production at the Meya Mining Operations (“the Debt Component”). The offer
includes a proposed equity transaction to acquire a 55% stake in Meya Mining at a nominal price
subject to conditions to be negotiated (“the Equity Component”) (the Debt Component and Equity
Component collectively the “Transaction”).

This debt facility will be utilised for additional exploration as well as enable Meya Mining to scale
production up to 1 million carats per annum over the next three-year period.

Shareholders are advised that it is envisaged that the agreements would be finalised during Q1 of
2022.

Trustco believes the Transaction, if successfully concluded, will have a material effect on the price of
the Company’s securities.

Accordingly, Shareholders are advised to exercise caution when dealing in the Company’s securities
until a further announcement regarding the Transaction is made. Any questions can be sent via email
to the company secretary at komada@tgh.na.

Windhoek, Namibia,
28 December 2021

Komada Holdings (Pty) Ltd
Company Secretary and Investor Relations Services to Trustco Group Holdings Limited

JSE Sponsor
Vunani Sponsors - Johannesburg

NSX Sponsor
Simonis Storm Securities Proprietary Limited – Windhoek

OTCQX Sponsor
J.P Galda & Co – New York

Date: 28-12-2021 10:15:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.