KINETIC DEV (01277) has completed the subscription of MC Mining shares.

KINETIC DEV(01277) announced that all conditions precedent for the second delivery have been met, and the subscription matters were completed on April 22, 2026. After completion, the Group has subscribed for and received a total of 431 million shares of MC Mining's new ordinary shares, representing 51% of its enlarged issued share capital. As a result, MC Mining has become an indirect non-wholly owned subsidiary of the Company. The total subscription price of $90 million has been fully settled by the Group using internal resources. Following completion, the board of directors of MC Mining has been restructured. As of the date of this announcement, the Company holds 5 out of 9 board seats in MC Mining, taking over its management rights and gaining actual control over MC Mining's strategic direction and operational management. As an indirect non-wholly owned subsidiary of the Company, MC Mining's financial performance will be consolidated into the Group's comprehensive financial statements from the completion date. MC Mining's total JORC mineral resources (in situ total tons) amount to approximately 8.3 billion tons, including flagship projects Makhado, Vele Aluwani coal mine, Uitkomst coal mine, and the Greater Soutpansberg Project (GSP). Following the completion of the subscription, the Group's combined coal resources amount to approximately 8.99 billion tons. Next, the Group will focus on advancing operational integration between MC Mining and the Group to enhance overall synergy and leverage the Group's expertise in coal mining and supply chain cost advantages. The Group will continue to optimize MC Mining's cost structure and enhance its operational performance, gradually unlocking the value of its various coal mining assets to provide shareholders with sustainable and steady returns. Below is an overview of the operations of MC Mining's four main coal mining projects. The Makhado project is the flagship coking coal project of MC Mining. The coal preparation plant is currently in the final stages of construction, undergoing individual machine testing and about to commence joint trial operation; the open-pit mine has fully exposed the coal seams, and all production preparations are ready for full-scale mining. In the future, the project will focus on optimizing mining plans, improving beneficiation efficiency, enhancing cost control throughout the process, and creating a high-capacity, high-efficiency, high-quality core coking coal production base. The GSP project is located in the Limpopo Province of South Africa, with high-quality coking coal resources covering approximately 88,000 hectares, with a JORC resource estimate of approximately 6.9 billion tons. The project has entered the advanced exploration and pre-feasibility stage, and the Group will prioritize development of the core blocks for open-pit mining to establish a large modern coking coal production base. The Uitkomst coal mine has completed its dormant program, and the Group is currently conducting process optimization design and pre-operations preparations to increase production capacity at the mine. The Group continues to refine technical solutions to prepare for the future restart of the project and rapid recovery of production capacity. The Vele Aluwani coal mine is currently in a state of shutdown. The Group plans to conduct feasibility studies on the soft coking coal resources of the Vele Aluwani mine in conjunction with the full operation of the Makhado project. If feasible, production can be resumed by implementing technical upgrades to the coal preparation plant, further enriching the product structure, and increasing the overall coking coal production and profitability of the Group.