OM : June 2022 Quarterly Production and Market Update

OM HOLDINGS LIMITED

(ARBN 081 028 337)

(Malaysian Registration No. 202002000012 (995782-P))

Incorporated in Bermuda

No. of Pages Lodged: 08

27 July 2022

ASX Market Announcements

ASX Limited

4th Floor

20 Bridge Street

SYDNEY NSW 2000

Dear Sir/Madam

JUNE 2022 QUARTERLY PRODUCTION AND MARKET UPDATE

The Board of OM Holdings Limited ("OMH" or the "Company") is pleased to provide the following update.

HIGHLIGHTS

OPERATING PERFORMANCE

SMELTING: OM Materials (Sarawak) Sdn Bhd (75% owned smelter in Samalaju, East Malaysia)

• Production output for the quarter ended 30 June 2022 was 35,004 tonnes of ferrosilicon ("FeSi"), 60,767 tonnes of manganese alloys (included silicomanganese ("SiMn") and high carbon ferromanganese ("HCFeMn")) and 30,446 tonnes of manganese sinter ore
• A total of 37,779 tonnes of FeSi and 52,172 tonnes of manganese alloys were sold during the quarter ended 30 June 2022
• Major scheduled maintenance works commenced in June 2022, beginning with manganese alloy furnaces, followed by FeSi furnaces
• Two furnaces to be converted to the production of manganese alloys have commenced hot commissioning and performance testing on 27 June and 25 July respectively
• Loan repayment of US$6.5 million (approximately A$9.0 million) was made to project finance lenders during the quarter ended 30 June 2022
• Conditional share purchase agreement ("SPA") with Samalaju Industries Sdn Bhd ("SISB") for SISB to sell its 25% interest in OM Materials (Sarawak) Sdn Bhd ("OM Sarawak") and OM Materials (Samalaju) Sdn Bhd ("OM Samalaju"), for cash consideration of USD120 million less the aggregate amount of shareholders' loans owing. Upon completion expected late in H2 2022, the OMH Group will own 100% of the Sarawak Project

ASX Code: OMH | Bursa Code: OMH (5298)

OPERATING PERFORMANCE (CONT'D)

MARKETING, TRADING AND MARKET UPDATE

• 422,380 tonnes of ores and alloys were transacted in the period from 1 April 2022 to 30 June 2022 as compared to 405,269 tonnes from 1 January 2022 to 31 March 2022, which represented a quarter-on-quarter increase of 4.2%
• World crude steel production during March and April 2022 was 334.2 million tonnes, which represented a 6.4% decrease as compared to the same period in 2021, due to a continued slowdown in Chinese steel production
• Price of 44% Mn ore closed lower at US$7.27/dmtu CIF China at the end of June 2022, a decrease of approximately 6.8%, from US$7.80/dmtu CIF China at the end of March 2022
• FeSi price decreased from US$2,225 to close at US$1,925 per metric tonne CIF Japan and SiMn price decreased from US$1,775 to close at US$1,225 per metric tonne CIF Japan at the end of June 2022

CORPORATE

• As at 11 July 2022, a total of 110,170,986 shares were listed on Bursa Malaysia and 628,452,351 shares were listed on the Australian Securities Exchange
• OMH was classified as Shariah-compliant by the Shariah Advisory Council of Securities Commission Malaysia, with effect from 27 May 2022

2

SMELTING

OM MATERIALS (SARAWAK) SDN BHD ("OM Sarawak")

OM Sarawak owns a Ferroalloy Smelting Plant in the Samalaju Industrial Park in Sarawak, Malaysia (the "Plant"). The Plant consists of 8 main workshops with a total of 16 units of 25.5 MVA furnaces, of which 6 units are allocated for the production of FeSi, 8 units for manganese alloys and 2 units for silicon metal which are currently undergoing conversion works. The Plant will have a design capacity to produce approximately 120,000 to 126,000 tonnes of FeSi, 333,000 to 400,000 tonnes of manganese alloys and 21,000 to 24,500 tonnes of silicon metal per annum upon completion of the conversion works. The Plant also consists of a sinter plant that has a design capacity to produce 250,000 tonnes of sinter ore per annum.

Commercial operation

As at 30 June 2022, 12 out of 16 furnaces were in operation with 6 furnaces producing FeSi and 6 furnaces producing manganese alloys. Of the remaining 4 furnaces, 1 furnace is undergoing conversion to produce manganese alloys ("FeSi - Manganese Alloys Conversion Project"), 1 furnace is undergoing scheduled major maintenance and another 2 furnaces are undergoing conversion to produce silicon metal ("FeSi - Silicon Metal Conversion Project").

For the quarter ended 30 June 2022, production volumes for FeSi and manganese alloys increased by 3.2% and 0.4% respectively.

For the quarter ended 30 June 2022, sales volumes for FeSi increased by 23.0%, and manganese alloys decreased by 9.5% as compared to the previous quarter ended 31 March 2022. The increase of FeSi sales volume was mainly attributed to delayed shipments at the end of March 2022 which were carried forward to Q2 2022.

Major scheduled maintenance works commenced in June 2022, beginning with manganese alloy furnaces, followed by FeSi furnaces. The furnaces scheduled for major maintenance will be shut down in stages, to minimise disruptions to ongoing operations.

Two furnaces to be converted to the production of manganese alloys have commenced hot commissioning and performance testing on 27 June and 25 July respectively. For the FeSi - Silicon Metal Conversion Project, demolition works were completed and civil modification works are ongoing. The smelter equipment fabrication has been completed and delivered to the Plant in batches for installation. Barring any unforeseen circumstances, hot commissioning and testing works are expected to occur in December 2022.

Loan repayment of US$6.5 million (approximately A$9.0 million) was made to project finance lenders during the quarter ended 30 June 2022.

3

Share Purchase Agreement

Further to the ASX announcements dated 5 May 2022,31 May 2022and 14 June 2022, OMH's wholly owned subsidiary, OM Materials (S) Pte Ltd ("OMS") has entered into a conditional share purchase agreement ("SPA") with Samalaju Industries Sdn Bhd ("SISB") for SISB to sell all its shares held (25% interest) in OM Materials (Sarawak) Sdn Bhd ("OM Sarawak") and OM Materials (Samalaju) Sdn Bhd ("OM Samalaju"), (collectively the "Targets") ("Sale Shares") for total cash consideration of USD 120 million less the aggregate amount of shareholders' loans ("Purchase Consideration"). Following the sale and purchase of the Sale Shares, OMS which currently holds 75% of the equity interest in the Targets will increase its equity interest in the Targets to 100%.

Subject to the terms and conditions as set out in the SPA, OMS agrees to purchase and SISB agrees to sell:

1. 165,594,162 ordinary shares representing 25% of the issued and paid up ordinary share capital of OM Sarawak and 43,690,300 irredeemable convertible preference shares in OM Sarawak, representing 25% of the issued and paid up preference share capital of OM Sarawak; and
2. 32,077,500 ordinary shares in OM Samalaju, representing 25% of the issued and paid up share capital of OM Samalaju.

(collectively, the "Transaction")

The Transaction includes the full and final settlement and full discharge of all shareholders' loans (including interests payable) between SISB and the Targets as of the closing date ("Shareholders' Loans"). Collectively, these Shareholders' Loans (including interests payable) amount to approximately USD 10.5 million as at 31 May 2022.

The conditions precedent within the SPA must be fulfilled or waived on or prior to 15 September 2022, or such other date as may be agreed in writing by both parties.

Upon fulfilment or waiver of the last condition precedent within the SPA, OMS shall pay the Purchase Consideration by way of cash on the closing date being sixty (60) business days following the date of the fulfilment or waiver of the conditions precedent or such other date as may be mutually agreed in writing between SISB and OMS.

OMH intends to fund the Purchase Consideration through a combination of existing cash reserves, future operating cash flows and/or an equity raising in the second half of 2022.

4

EXPLORATION AND MINING

OM (MANGANESE) LTD ("OMM")

Production at the 100% owned Bootu Creek Manganese mine (the "Mine") ceased as planned during the quarter ended 31 December 2021. Processing of the final ore occurred in January

2022 and sales during the quarter ended 30 June 2022 are summarised below:

Processing

The Mine was placed under care and maintenance mode since the end of January 2022. Measures have already been implemented and will continue to be undertaken during the period of care and maintenance with appropriate environmental management strategies and activities planned to manage environmental requirements.

The UFP rectification plan is ongoing to resolve poor screening efficiency, tails pumping issues and increase the water supply to the UFP.

Logistics

During the quarter ended 30 June 2022, a total of 59,056 tonnes of manganese product was exported, compared to 85,296 tonnes of manganese product exported in the quarter ended 31 March 2022.

Environmental Programs

During the quarter ended 30 June 2022, rehabilitation progressed at the Mine. Five targets were met between 1 April 2022 and 30 June 2022 for the rehabilitation of the Shekuma Waste

5