Brikor has entered into a contract mining and coal purchase agreement on 30 June 2023 with TCQ mining (Pty) Limited, a wholly owned subsidiary of Nikkel Trading 392 Proprietary Limited, Illangabi Investments 12 Proprietary Limited ("Ilangabi), and Kopanela Mining (Pty) Limited ("Kop anela"), a subsidiary of Brikor, in terms of which (i) TCQ Mining will provide contract mining services to Brikor; and (ii) Brikor, Ilangabi and Kopanela will sell all coal mined by TCQ Mining in on or under the Grootfontein Mining Area and the Vlakfontien Mining Area as defined below. ("the Transaction"). Nikkel Trading is a material shareholder in Brikor and the Transaction accordingly constitutes a related party transaction in terms of the JSE Listings Requirements.

Brikor's core business and expertise is brick-making. Although Brikor (including its subsidiaries) owns substantial coal reserves, to date Brikor has not been able to exploit these reserves to their full potential. It is believed that Brikor will benefit from TCQ Mining's deep mining expertise, financial resources, and Equipment to achieve the Company's objective of commercially exploiting its Mining Rights; The above arrangement will therefore assure that the Brikor mining operations will be professionalised, will be fully funded, will be profitable and cashflow positive and will ensure a secure supply of clay for its core business.

Brikor is the holder of the Grootfontein Mining Right, the mining right under reference number GP30/5/1/2/2 (10059) MR granted to Brikor in terms of section 23 of the Mineral and Petroleum Resources Development Act, 29 of 2002 ("MPRDA") to mine coal in, on or under the Grootfontein Mining Area. Ilangabi is the holder of the Vlakfontein Mining Right, the Pending Prospecting Rights (as detailed below) as well as the mining right under reference number GP30/5/1/2/2 (219) MR granted to Ilangabi in terms of section 23 of the MPRDA to mine coal in or under the Vlakfontein Mining Area. The Pending Prospecting Rights are the prospecting rights for Coal and Clay on portion 9 of the farm Vlakfontein 281 JR, in respect whereof the application for prospecting rights has been accepted by the Department of Mineral Resources and that is currently undergoing the formal process of being officially granted to Ilangabi in terms of section 17(1) of the MPRDA, and which may be incorporated into the Vlakfontein Mining Right by means of section 102 of the MPRDA, if granted.

It is anticipated that the Grootfontein Mining Right will be transferred from Brikor to Kopanela Mining pursuant to an application in terms of Section 11(1) of the MPRDA. Brikor, Ilangabi and Kopanela will jointly appoint TCQ Mining as an independent contractor with effect from the first business day following the date on which the Agreement becomes final ("Effective date") to provide services until the earlier of: the date on which the last of the Mining Rights lapses, the date on which the last ton of coal is mined from the Mine in terms of the Life of Mine Plan or the date on which the Agreement is terminated or cancelled. TCQ Mining will purchase from Brikor, Ilangabi and Kopanela all coal mined in, on or under the Mining Areas.