Jupiter Mines Outlines Growth Strategy to Become World's Largest Manganese Producer

• Jupiter Mines is the largest manganese-focused pure-play miner listed on the Australian Stock Exchange (ASX).
• The company has paid substantial dividends to its shareholders, with a 13% dividend yield over the last five years.
• Jupiter's key asset is the Tshipi manganese mine in the northern Cape of South Africa, which has a long mine life, low costs, and strong cash generation.
• The company's growth strategy includes increasing manganese production, consolidating ownership in the Kalahari manganese field, focusing on ESG (Environmental, Social, and Governance) practices, implementing solar power, and exploring downstream processing for the EV battery market.

Overview of Jupiter Mines

Jupiter Mines Limited (ASX: JMS) is the largest manganese pure play miner listed on the Australian Stock Exchange. The company owns a 49.9% interest in Tshipi é Ntle Manganese Mining Proprietary Limited, which operates the Tshipi manganese mine located in the Kalahari Manganese Field in South Africa.

Tshipi is one of the largest and lowest cost manganese mines globally, with an installed capacity of 3.6 million tonnes per annum (Mtpa). It has been operating successfully since 2012 and has an estimated remaining life of over 120 years based on its mineral reserves.

Jupiter has paid out an impressive A$765 million in dividends over the past 5 years, representing 94% of its current market capitalization. This has provided shareholders an attractive average dividend yield of 13% over this period.

Growth Strategy Focused on South Africa

In March 2022, Jupiter announced a new growth strategy focused exclusively on manganese and South Africa. The objective is to become the largest manganese producer globally within 5 years, while maintaining its reputation for customer reliability, responsibility and robust investor returns.

The growth plan will center around the Kalahari Manganese Field in South Africa, which contains ~73% of global manganese reserves and currently supplies ~36% of global production. Jupiter believes the region provides a unique opportunity to significantly grow manganese supply in the coming decades as reserves become depleted elsewhere.

The growth strategy rests on four key pillars:

• Fittest in the Field: Focus on improving Tshipi's cost position and optimizing logistics and marketing. Target increasing Tshipi's production from 3.5 Mtpa currently to 4 Mtpa or higher.
• Field Consolidation: Consolidate ownership of additional mines within the Kalahari Manganese Field through acquisitions. Jupiter's strong balance sheet provides flexibility to pursue consolidation opportunities.
• Responsible Execution: Growth projects will have a strong focus on ESG, empowerment and positive local community outcomes. Jupiter aims to set new benchmarks for responsible mining in South Africa.
• Future-Proofing: Evaluate opportunities to invest in manganese processing facilities to produce battery-grade manganese products to capitalize on forecast growth in EV battery demand.

Manganese Market Outlook is Supportive of Growth Plans

The outlook for the manganese market over the next few decades appears very positive, which provides a supportive backdrop for Jupiter's growth strategy.

• Manganese supply is expected to tighten considerably over the coming decades as major mines reach end of life. South Africa will be best positioned globally to fill this supply gap given its massive reserve base.
• Demand growth will be driven by traditional steel markets and emerging demand from EV batteries. Manganese is a critical mineral input for EV batteries.
• These dynamics are expected to shift the manganese market into deficit by 2030, supporting higher prices that will incentivize investment in new manganese supply.

Maximizing Benefits for South Africa

While Jupiter will utilize Australian capital to fund its growth, the company emphasizes that the execution of projects will aim to maximize benefits for South Africa.

Jupiter currently has an empowerment partner at Tshipi and intends to replicate this model with new projects. There will also be a focus on hiring and developing local management and staff.

The company plans to install solar power at Tshipi to reduce energy costs and emissions. It is also evaluating a manganese processing plant in South Africa to add value locally and support development of a downstream battery supply chain.

Continued Strong Dividends Plus Growth Upside

Jupiter aims to provide investors continued attractive dividends in line with its current policy, yielding around 13% based on the current share price.

Additionally, successful execution of the growth strategy is expected to deliver increased production, earnings growth and manganese price leverage for shareholders.

With its unique portfolio of high-quality manganese assets in South Africa and strong balance sheet, Jupiter appears well positioned to execute its plan to become the world's largest manganese producer over the next 5 years. The growth strategy offers investors exposure to an attractive commodity with robust long-term fundamentals, underpinned by continued strong cash flow generation.

Here are a few reasons why Jupiter Mines could be a good investment for investors:

• Attractive commodity exposure - Manganese is a critical mineral for steelmaking and increasingly for batteries. Market fundamentals point to a supply deficit emerging in the coming years, which should support higher manganese prices.
• World-class assets - Jupiter's Tshipi mine is one of the largest and lowest-cost manganese mines globally with over 120 years of reserves. Additional consolidation opportunities in the Kalahari Manganese Field provide further upside.
• Production growth potential - Jupiter aims to increase Tshipi's output by 14% to 4Mtpa in the near term. Additional growth projects in the pipeline provide further long-term growth potential.
• Strong balance sheet - Jupiter has zero debt on its balance sheet and is generating strong free cash flow. This provides flexibility to fund growth projects without equity dilution.
• Attractive dividends - Jupiter has consistently paid out very high dividends, averaging a 13% dividend yield over the past 5 years. Guidance is for continued high payouts.
• Value upside - The current share price does not appear to fully reflect Jupiter's growth potential or upside in the manganese price. Successful execution could lead to strong share price appreciation.
• Strong ESG credentials - Responsible development of resources in South Africa provides diversification for ESG-focused investors.

In summary, Jupiter offers exposure to an attractive commodity at the start of a bull cycle, with world-class long-life assets, funded by a strong balance sheet and cash flows. The growth strategy provides production, earnings and dividend growth potential for investors.