Magnis Energy Technologies : Quarterly Report/Appendix 5B

For personal use only

Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity

quarterly cash flow report

Name of entity

Magnis Energy Technologies Ltd
ABN	Quarter ended ("current quarter")
26 115 111 763	30 June 2022

Consolidated statement of cash flows	Current quarter	Year to date
			$A'000	(12 months)
				$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	-	-
1.2	Payments for
	(a)	exploration & evaluation (if expensed)	-	-
	(b)	development	(491)	(715)
	(c)	production	(585)	(1,096)
	(d)	staff costs	(826)	(4,322)
	(e)	administration and corporate costs	(14,119)	(19,761)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	8	23
1.5	Interest and other costs of finance paid	(3,652)	(11,697)
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	-	-
1.8	Other (provide details if material)	-	-
1.9	Net cash from / (used in) operating	(19,665)	(37,568)
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a)	entities	-	-
	(b)	tenements	-	-
	(c)	property, plant, and equipment	(10,979)	(34,112)
	(d)	exploration & evaluation (if capitalised)	(227)	(1,106)
	(e)	investments in iM3NY, Charge CCCV	88	314
	(f)	other non-current assets	-	-
2.2	Proceeds from the disposal of:
	(a)	entities	-	-
	(b)	tenements	-	-

ASX Listing Rules Appendix 5B (17/07/20)	Page 1
+ See chapter 19 of the ASX Listing Rules for defined terms.

For personal use only

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter	Year to date
			$A'000	(12 months)
				$A'000
	(c) property, plant, and equipment	163	395
	(d)	investments	-	-
	(e)	other non-current assets	-	-
2.3	Cash flows from loans to other entities*	2	7
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	-
2.6	Net cash from / (used in) investing	(10,953)	(34,502)
	activities

* Short-term loans to/from Charge CCCV, Imperium3 Townsville + Imperium3 NY

3. Cash flows from financing activities

3.1 Proceeds from issues of equity securities

	(excluding convertible debt securities)	(3,109)	18,941
3.2	Proceeds from issue of convertible debt	(1)	1,749
	securities
3.3	Proceeds from exercise of options	-	21,780
3.4	Transaction costs related to issues of equity	3,109	3,104
	securities or convertible debt securities
3.5	Proceeds from borrowings	111,983	112,789
3.6	Repayment of borrowings	(68,908)	(68,908)
3.7	Transaction costs related to loans and	-	3,508
	borrowings
3.8	Dividends paid	-	-
3.9	Other (provide details if material)^	-	-
3.10	Net cash from / (used in) financing	43,074	92,963
	activities

^ Repayment of lease liabilities

4. Net increase / (decrease) in cash and cash equivalents for the period

4.1	Cash and cash equivalents at beginning of	81,805	72,895
	period
4.2	Net cash from / (used in) operating	(19,665)	(37,568)
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	(10,953)	(34,502)
	(item 2.6 above)
4.4	Net cash from / (used in) financing activities	43,074	92,963
	(item 3.10 above)
4.5	Effect of movement in exchange rates on	5,982	6,455
	cash held
4.6	Cash and cash equivalents at end of	100,243	100,243
	period

ASX Listing Rules Appendix 5B (17/07/20)	Page 2
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

For personal use only

5.	Reconciliation of cash and cash	Current quarter	Previous quarter
	equivalents	$A'000	$A'000
	at the end of the quarter (as shown in the
	consolidated statement of cash flows) to the
	related items in the accounts
5.1	Bank balances	100,243	81,805
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end of	100,243	81,805
	quarter (should equal item 4.6 above)

6.	Payments to related parties of the entity and their	Current quarter
	associates	$A'000
6.1	Aggregate amount of payments to related parties and their	246
	associates included in item 1
6.2	Aggregate amount of payments to related parties and their	-
	associates included in item 2

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments

7.	Financing facilities	Total facility amount	Amount drawn at
	Note: the term "facility' includes all forms of financing	at quarter end	quarter end
	arrangements available to the entity.	$A'000	$A'000
	Add notes as necessary for an understanding of the
	sources of finance available to the entity.
7.1	Loan facilities	145,111	145,111
7.2	Credit standby arrangements	-	-
7.3	Other (please specify)	-	-
7.4	Total financing facilities	145,111	145,111
7.5	Unused financing facilities available at quarter end	0

7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.

Magnis previously announced on 19 April 2022, that its majority owned subsidiary Imperium3 New York Inc(iM3NY) entered into a US$100 million loan facility ("loan facility"), which was utilised to retire its US$50 million senior secured loan facility entered into with Riverstone and provide additional cash and financial flexibility to take advantage of new long-term growth opportunities.

The key terms of the loan facility are: Lender: ACP POST OAK CREDIT I LLC through Atlas Credit

Partners ("ACP") in collaboration with Aon, Amount: US$100 Million, Term: 3 Years, Guarantor:

Charge CCCV LLC (C4V), Security: a lien over the assets of iM3NY and the intellectual property of

C4V (a minority shareholder in iM3NY) provided to iM3NY, and Interest cost: Secured Overnight Financing Rate (SOFR - that has a floor of 1%) + a 6% margin and Credit Insurance Wrap Premium, which in Year 1 is 8.25%, Year 2 is 4.6% or 2.5% (if milestone achieved) and in Year 3 is 4.35% or 2.25% (if further milestone achieved).

Please see the announcement on 19 April 2022 for more details.

ASX Listing Rules Appendix 5B (17/07/20)	Page 3
+ See chapter 19 of the ASX Listing Rules for defined terms.

For personal use only

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

8.	Estimated cash available for future operating activities	$A'000
8.1	Net cash from / (used in) operating activities (Item 1.9)	(19,665)
8.2	Capitalised exploration & evaluation (Item 2.1(d))	(227)
8.3	Total relevant outgoings (Item 8.1 + Item 8.2)	(19,892)
8.4	Cash and cash equivalents at quarter end (Item 4.6)	100,243
8.5	Unused finance facilities available at quarter end (Item 7.5)	0
8.6	Total available funding (Item 8.4 + Item 8.5)	100,243
8.7	Estimated quarters of funding available	5.0
(Item 8.6 divided by (Item 8.3 x -1))

8.8 If Item 8.7 is less than 2 quarters, please provide answers to the following questions:

1. Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?

Answer: na

2. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

Answer: na

3. Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer: na

Compliance statement

1. This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
2. This statement gives a true and fair view of the matters disclosed.

Date:

28 July 2022

Authorised by: By the Board of Directors

(Name of body or officer authorising release - see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
4. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - e.g., Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (17/07/20)	Page 4
+ See chapter 19 of the ASX Listing Rules for defined terms.

For personal use only

ASX: MNS | FSE: U1P | OTC: MNSEF

Q U A R T E R L Y R E P O R T

For Quarter Ending June 2022

Key Highlights

• Magnis' Lithium-ion battery manufacturing facility, Imperium3 New York Inc ("iM3NY") was 84% complete at end of June and at the final stage before fully automated production can commence
• During the quarter, iM3NY closed an Intellectual Property-based Financing in collaboration with Atlas Credit Partners and Aon for US$100 million
• After a 6-month global search managed by executive search firm Korn Ferry, the company announced the appointment of Mr. David Taylor as Chief Executive Officer
• Tanzanian Prime Minister and Ruangwa MP, Hon. Kassimu Majaliwa visited the Nachu Graphite Project
• Construction of the 59 houses in the Eco-village as part of the Resettlement Action Program continues to progress
• As an essential requirement for project financing of the Nachu Graphite Project, Magnis has appointed IBIS Consulting, a premier emerging market sustainability consultancy to prepare a detailed Environmental and Social Due-Diligence report
• Magnis' Corporate Social Responsibility programs continue to provide much needed infrastructure for the local community
• Magnis was the major sponsor of the International Meeting of Lithium Batteries (IMLB) 2022 conference that was recently held in Sydney