KINETIC DEV (01277) subsidiary and Minenet have signed a cooperation agreement for the Ruby project in Sherbro Lokko, Sierra Leone.

KINETIC DEV(01277) announced that on December 23, 2025, the company's indirect wholly owned subsidiary Kinetic Development Metal Mining (SL) Limited (Metal Mining), registered in Sierra Leone, has entered into a cooperation agreement and supplemental agreement with Minenet Company Limited (Minenet), a company registered in Sierra Leone, for the Ruby Mining Project located in Rotifunk, Sierra Leone. Minenet holds a large ruby mining license in Moyamba District, Sierra Leone, covering an area of approximately 117 square kilometers, valid until February 25, 2049. Under the agreement, Metal Mining will invest and carry out mining operations within the specified 50 square kilometer area of the license, with exclusive rights for exploration, extraction, processing, and sales. Metal Mining will be responsible for the development, production, and operational management of the ruby project in the designated mining area. The cooperation period will continue until the expiration of the mining license on February 25, 2049, with the possibility of extension through mutual agreement if the ruby project remains viable. In the first phase, Metal Mining will construct three production lines, each with an annual processing capacity of over 2 million tons of ore. The total investment for the three production lines is estimated at around $18 million, with an expected annual production capacity of approximately 280,000 tons of ore (rutile). Once the three production lines are operating normally, all ore products will be distributed between Metal Mining (80%) and Minenet (20%). Upon successful and stable operation of the first phase production lines, Metal Mining has committed to completing the construction and testing of two additional production lines within twelve months, bringing the total number of production lines to five. Ruby is a major source of titanium dioxide, widely used in pigments, paints, plastics, paper, as well as in the production of titanium metal for aerospace, medical implants, and high-performance alloys. The project is expected to produce high-grade ore that meets international market standards, enhancing the group's competitiveness in supplying high-quality raw materials to global industrial customers. The ruby ore in this project contains 30%-45% rutile (with a titanium dioxide content of 95%), 35%-55% titaniferous iron (with a titanium dioxide content of 52.66%), and 2.3%-6% zircon. Based on current market data, the indicative average prices are: $410 per ton of ore, $960 per ton of rutile, $251 per ton of titaniferous iron, and $1,456 per ton of zircon. Once all five production lines of the ruby project are in full operation, an estimated production of approximately 480,000 tons of ore per year is expected, with Metal Mining entitled to approximately 80% (equivalent to around 384,000 tons) of the ore. Based on available information, the estimated unit cost of ruby ore in the project is around $200 per ton. This information is for illustrative purposes only and does not constitute a forecast or estimate of the group's income or profits. The project is currently under construction and is expected to start production in September 2026. Regarding sales, the ruby project's produced ore is currently expected to be primarily sold to customers in the Chinese market. Additionally, Metal Mining plans to promote these products to global customers depending on market conditions and business arrangements. The board also believes that this agreement provides a strategic opportunity for the group to expand its resource portfolio to include ruby (an important titanium material) and strengthen its international mining operations.