MANTENGU MINING LIMITED - Voluntary Announcement: Warning of Shorting Risk

Voluntary Announcement: Warning of Shorting Risk

MANTENGU MINING LIMITED
Incorporated in the Republic of South Africa
(Registration number: 1987/004821/06)
Share code: MTU ISIN: ZAE000320347
("MTU" or "the Company")


VOLUNTARY ANNOUNCENT: WARNING OF SHORTING RISK


In light of MTU's concerns regarding the manipulation of its share price, the board of directors
of MTU ("the Board") wants to inform shareholders of the following facts:

•   On 30 April 2025, two MTU shareholders contacted the Board to inform the Board that
    Standard Bank Online Share Trading ("SBSA") contacted them, on behalf of the JSE, to
    borrow 1.8 million MTU shares to settle an unmatched trade. It is important to note that SBSA
    is Operated by SBG Securities (Pty) Ltd, an authorised user of the JSE.

•   Considering the Company's share manipulation concerns, the first shareholder refused
    SBSA and the JSE's advance and telephonically informed the Board of the matter.

•   The second MTU shareholder, contacted SBSA to understand the context of the advance
    and requested written evidence to support the transaction, if they chose to proceed. The
    MTU shareholder then sent two emails, on 30 April 2025, to inform the Board of the following:

•   The first email to the board outlined the conversation that took place between the
    shareholder and SBSA. As outlined in the mail, the crux of the conversation was as follows:

    "explained that they had been contacted by one of their brokers, as I understand it, looking
    to 'borrow' 1.8 million shares from me to execute a trade as they didn't have enough shares
    to finalise. In return, they would return all my shares by 2 May and would pay me R1 000."

•   The second email contained a Securities Lending Agreement ("SLA") between the JSE and
    the MTU shareholder. The salient terms of the SLA are as follows:

            o   "MTU shareholder shall deliver the securities to the JSE by close of business on
                such later date as may be agreed between the parties."

            o   "The JSE shall pay to MTU shareholder a lending rate equivalent to the most
                favourable lending rate that the JSE is able to procure from other lenders of
                securities for a similar lending."

            o   "The JSE shall transfer, upon six business days' notice from MTU shareholder
                to SBG Securities (PTY) LTD by electronic entry, the equivalent type and
                number of the securities by no later than the end of the notice period."

            o   The shareholder would be paid R1,000 by the JSE for lending the 1.8 million
                MTU shares.

•   Upon receiving the oral and written information, Mantengu sent the information to its JSE
    and legal advisors for review.

It would appear from the information that one of two things is happening. In the first instance,
the JSE might be borrowing the MTU shares to settle an unmatched illegal naked short. In the
second instance, the JSE might be entering into the SLA to support a short where a shareholder
wants to sell more shares than they hold. Whilst this second instance may be legal, Mantengu
wants to inform its shareholders that this form of shorting is extremely peculiar. The reason for
this is that legitimate shorting is generally targeted at blue-chip, high-volume stocks in competing
markets. Legitimate shorting does not target small to mid-cap listed companies. In the first or
second instance, the purpose is to artificially erode MTU's share price. The Board kindly
requests shareholders to approach such transactions with caution and to report such
communications directly to the Board.


Johannesburg
8 May 2025

Designated Adviser
Merchantec Capital

Date: 08-05-2025 02:25:00
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