SABLE EXPLORATION AND MINING LIMITED - Supply agreement for Lapon plant to accelerate production ramp-up and cautionary announcement

Supply agreement for Lapon plant to accelerate production ramp-up and cautionary announcement

SABLE EXPLORATION AND MINING LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 2001/006539/06
General Segment
JSE Share Code: SXM
ISIN: ZAE000303319
("Sable" or "the Company")

General Segment

SUPPLY AGREEMENT FOR LAPON PLANT TO ACCELERATE PRODUCTION RAMP-UP AND
CAUTIONARY ANNOUNCEMENT

1.      Introduction

Lapon Plant (Pty) Ltd ("Lapon"), a wholly owned subsidiary of Sable has entered into a comprehensive
Operator, Ore Supply and Processing Agreement (the "Agreement") on 26 October 2025 with
Daemaneng Minerals (Pty) Ltd ("Daemaneng") ("the Transaction") with effect from 26 October 2025
("Effective date"). The beneficial owner of Daemaneng is Glenn Norton.

Lapon is the owner of a partially constructed beneficiation plant used to crush, mill as well as a magnetic
separation plant capable of processing magnetite ore and producing DMS grade magnetite ("the
Product") ("the Plant"). Under the Agreement, Daemaneng will act as both the exclusive operator of the
Plant and the sole supplier of the Product, assuming full responsibility for all operational, financial, and
managerial functions of the Plant. Daemaneng will fund 100% of all capital expenditure and operational
expenditure associated with the optimisation, expansion and ongoing operation of the Plant.

2.      Rationale

This Transaction forms a core part of Sable's strategy to de-risk operations, deliver near-term production
and achieve early profitability under a fully funded operational model. It enables positive cash flow
generation at the group level and brings the technical and operational depth needed to ensure the long-
term success of the Plant as well as Sable's broader strategic objectives.

3.      Salient terms of the Transaction
3.1   Within three months of the Effective date, Daemaneng shall ensure that the Plant can produce
      5 000 tonnes of Product and within 20 business days thereafter, deliver to Lapon a written
      expansion plan to expand the Plant in order to achieve a production capacity of 15 000 tonnes
      per month of Product.
3.2   Daemaneng is also in charge of all marketing and sales of DMS grade magnetite or any other
      product that can be produced by Lapon.
3.3   A profit sharing mechanism is included for profit beyond an agreed base price.
4.      Categorisation of Transaction
As the total consideration is not subject to a maximum, the Transaction is a category one transaction
and requires shareholders' approval.
5.      Financial information and cautionary announcement
The JSE has been consulted regarding the financial information of the Transaction and as a result
shareholders are advised to exercise caution when dealing in Sable's shares until the financial
information is released.

6.      Circular to shareholders

Sable will distribute a circular to shareholders containing a notice of general meeting within 60 days of
the Effective date. Shareholders will be kept updated in this regard.
Johannesburg
29 October 2025

Sponsor

Exchange Sponsors

Date: 29-10-2025 02:50:00
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