OM : March 2022 Quarterly Production and Market Update

OM HOLDINGS LIMITED

(ARBN 081 028 337)

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

Incorporated in Bermuda

28 April 2022

ASX Market Announcements ASX Limited

4th Floor

20 Bridge Street SYDNEY NSW 2000

Dear Sir/Madam

MARCH 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 31 March 2022 was 33,925 tonnes of ferrosilicon ("FeSi"), 60,540 tonnes of manganese alloys (included silicomanganese

  ("SiMn") and high carbon ferromanganese ("HCFeMn")) and 25,647 tonnes of manganese sinter ore

• • A total of 30,718 tonnes of FeSi and 57,632 tonnes of manganese alloys were sold during the quarter ended 31 March 2022

• • Scheduled major maintenance works are expected to commence in June 2022

• • Loan repayment of US$6.5 million (approximately A$8.6 million) was made to project finance lenders during the quarter ended 31 March 2022

EXPLORATION AND MINING: OM (Manganese) Ltd (100% owned Manganese mine in Bootu Creek, Northern Territory, Australia)

• • Manganese ore production of 18,071 tonnes with an average grade of 28.69% Mn for the quarter ended 31 March 2022

• • Manganese ore shipments of 85,296 tonnes with an average grade of 30.53% Mn for the quarter ended 31 March 2022

• • Bootu Creek operation is now in a care and maintenance mode since the end of January 2022 with appropriate environmental management strategies and activities planned and underway to manage/minimise environmental impacts

Singapore Office:

10 Eunos Road 8, #09-03A

Singapore Post Centre, Singapore 408600 Tel: 65-6346 5515 Fax: 65-6342 2242 Email address:om@ommaterials.comWebsite:www.omholdingsltd.comMalaysia

Malaysian Registered Office:

Unit 30-01, Level 30, Tower A Vertical Business Suite Avenue 3 Bangsar South, No.8, Jalan Kerinchi

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

59200 Kuala Lumpur

1

OPERATING PERFORMANCE (CONT'D)

• • The Ultra Fines Plant ("UFP") produced 2,133 tonnes of product at 33.74% Mn for the quarter ended 31 March 2022. Further trials and production assessments were completed at the end of January 2022

SMELTING: OM Materials (Qinzhou) Co Ltd ("OMQ") (100% owned smelter and sinter plant in Qinzhou, Guangxi Province, China)

• • There was no production for the quarter ended 31 March 2022 due to elevated power-tariffs in China

MARKETING, TRADING AND MARKET UPDATE

• • 405,269 tonnes of ores and alloys were transacted in the period from 1 January 2022 to 31 March 2022 as compared to 555,094 tonnes from 1 October 2021 to 31 December 2021, which represented a quarter-on-quarter decrease of 27.0%, mainly due to lower Mn ore shipments

• • World crude steel production during January and February 2022 was 319.2 million tonnes, which represented a 1.8% decrease as compared to the same period in 2021, due to a reduction in Chinese steel production

• • Price of 44% Mn ore closed at US$7.80/dmtu CIF China at the end of March 2022, a significant 39.3% increase from US$5.60/dmtu CIF China at the end of December 2021

• • FeSi price increased from US$2,110 to US$2,225 per metric tonne CIF Japan while SiMn price increased from US$1,535 to US$1,775 per metric tonne CIF Japan during the quarter ended 31 March 2022

CORPORATE

• • As at 31 March 2022, a total of 109,092,986 shares were listed on Bursa Malaysia and 629,530,351 shares listed on the Australian Securities Exchange

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 10 units are allocated for the production of FeSi and 6 units are allocated for the production of manganese alloys. The Plant has a design capacity to produce approximately 200,000 to 210,000 tonnes of FeSi and 250,000 to 300,000 tonnes of manganese alloys per annum. 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 31 March 2022, 12 out of 16 furnaces were in operation with 6 furnaces producing FeSi and 6 furnaces producing manganese alloys. Of the remaining 4 FeSi furnaces, 2 furnaces are undergoing conversion to produce manganese alloys ("FeSi - Manganese Alloys Conversion Project") and another 2 furnaces are undergoing conversion to produce silicon metal ("FeSi -

Silicon Metal Conversion Project").

For the quarter ended 31 March 2022, production volumes for FeSi and manganese alloys decreased by 6.1% and 3.0% respectively as compared to the previous quarter.

For the quarter ended 31 March 2022, sales volumes for FeSi and manganese alloys decreased by 11.0% and 0.9% respectively as compared to the previous quarter ended 31

December 2021. This was mainly attributed to export bulk shipments that were delayed at the end of March 2022.

Scheduled major maintenance works will commence in June 2022, alleviating the pressures from hiring new Chinese skilled workers. The Company's smelting production guidance for the year remains unchanged.

Chinese contractors have arrived in batches for equipment installation of the FeSi - Manganese Alloys Conversion Project, and we expect conversion works to be completed in mid-2022. This will be followed by furnace lining and hot commissioning in the third quarter of 2022. For the FeSi - Silicon Metal Conversion Project, demolition works are ongoing. Barring unforeseen circumstances, hot commissioning and testing works are expected to occur in December 2022.

Loan repayment of US$6.5 million (approximately A$8.6 million) was made to project finance lenders during the quarter ended 31 March 2022.

OM MATERIALS (QINZHOU) CO LTD ("OMQ")

Production and sales from the Qinzhou smelter and sinter plant for the quarter ended 31 March 2022 are summarised below:

There was no production for the quarter ended 31 March 2022 given elevated power-tariffs in China.

Sales

During the quarter ended 31 March 2022, OMQ secured sales of 4,564 tonnes of manganese alloys and 5,880 tonnes of manganese sinter ore.

EXPLORATION AND MINING

OM (MANGANESE) LTD ("OMM")

Production at the 100% owned Bootu Creek Manganese mine (the "Mine") for the quarter ended 31 March 2022 is summarised below:

The Mine achieved ore production of 18,071 tonnes for the quarter ended 31 March 2022 at an average grade of 28.69% Mn. The processing plant ceased production and was placed into care and maintenance on 24 January 2022.

The UFP produced 2,133 tonnes of product at 33.74% Mn and a yield of 19.38% for the quarter ended 31 March 2022 with feed stocks being sourced from the surface tailing storage facilities.

A review of the standalone UFP trial operations was completed during the quarter ended 31 March 2022. Modification requirements to address poor screening and tails pumping deficiencies encountered during the full trial were identified.

The site has been placed under care and maintenance since the end of January 2022. Measures have already been implemented and will continue to be undertaken during the period

This is an excerpt of the original content. To continue reading it, access the original document here.