Orexplore Technologies : Quarterly activities and Appendix 4C cash flow reports

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ASX ANNOUNCEMENT

29 July 2022

ABN 98 645 505 406

Quarterly Activities & Cash Flow Report

Period Ended June 2022

Quarter Highlights

• Advanced the OZ Minerals opportunity including site inspections, customer engagement and tendering of the project (with subsequent contract award of circa $2.35 million in the period post June 30).
• Successful operational delivery of the Wiluna project - further validating the Technology Platform's in-field exploration decision support value proposition.
• Continued laboratory scanning and value proposition development work across Perth and Stockholm for customers.
• Advanced the technology platform including GX10 core handling capability and speed increases and Orexplore Insight® capabilities.
• Commencement of a Perth based dedicated sales leader to accelerate customer out-reach and drive pipeline growth.
• Engaged Latin American based sales partner who commenced regional and customer engagement with tailored local sales material.
• Cash balance at 30 June 2022 of $10.63million (no debt) and continued focus on financial discipline.

Perth, Australia; 29 July 2022 - Orexplore Technologies Limited (ASX: OXT) ("Orexplore" or the "Company"), a globally focused mineral scanning technology company concentrated on the mining and metals sector, is pleased to provide its Quarterly Activities and Cash Flow Report for the quarter ended 30 June 2022.

Commercial contracts and field trials underway

The June Quarter was a busy period for the Company with ongoing industry outreach to promote Orexplore's fast, non-destructive core scanning technology. This resulted in the Company being awarded a mineral scanning and analysis contract in the period post 30 June 2022, valued at approximately $2.35m, with ASX-listed miner OZ Minerals Limited ("OZ Minerals"). (See ASX release dated 7 July 2022).

Under the binding contract, Orexplore will deliver site-baseddrill-core and sample scanning services of around 30,000m for OZ Minerals over a period of approximately 6 months. This work will support the testing of new data driven processes focused on optimising resource, scale and value outcomes, the testing of innovative processes and technologies across the value chain, and exploration for new resources.

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This agreement with OZ Minerals is significant to Orexplore in that it represents a fully commercial site deployment of Orexplore's ore body knowledge value proposition powered by the Company's Technology Platform. This engagement seeks to deliver enhanced ore body characterisation rapidly from "seeing through" scanned core and samples in the field to generate 3D models and connecting new information sets to project studies that may improve data-driven decision making and accelerate study processes.

Information from GeoCore X10® drill core scans can be available for analysis within hours of drilling and in a more sustainable way. The Orexplore Insight® software provides the platform to connect remote geological decision-makers anywhere in the world to analyse and interpret results to accelerate decision-making.

Following the signing of a binding agreement with Wiluna Mining Corporation Limited ("Wiluna") (See ASX release dated 29 March 2022), the Company scanned approximately 2,000m to power the delivery of the Company's exploration decision support value proposition to assist Wiluna with drill campaign optimisation. Revenue of $162,000 was invoiced during the quarter. Subsequent to quarter end, Wiluna has entered voluntary administration and the Company has therefore fully provided for the non-recovery of this amount.

The ore body knowledge value proposition featured in the OZ Minerals project is notably adjacent to the value proposition delivered for Wiluna and demonstrates a further commercial broadening of the Company's suite of value propositions.

During the quarter, the Company's commercialisation phase continued through further customer outreach, ongoing scanning of core in the Perth and Stockholm laboratories and advancing in-kind trials. Activities included:

• Receiving and scanning core and samples in the Orexplore laboratories from customers for testing and to demonstrate and advance the Company's value propositions;
• Ore sorting test work and value proposition development with customers; and
• Analysis of the full-scalefield-trial outputs and collaborative advancement of the potential associated operational value propositions.

Accelerating sales and marketing

A full-time sales executive, Kath Hodgson, was appointed during the period to advance the customer out-reach process and continue to build the sales pipeline. Kath has over 25 years in the Resources Industry across Australia and Africa and vast experience throughout the mining lifecycle, from managing remote greenfields exploration operations, resource and reserve definition programs, and integrating these with mining and mineral processing programs. Kath's extensive industry experience has been built broadly from field exploration and geology, through industry laboratory and assay service providers, to senior management roles within service providers evolving new technologies.

The Company formally commenced an agreement with a Latin American based sales

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partner on a limited trial basis to undertake market testing and local engagement in that region. The purpose of this engagement is to test the current local market conditions and identify potential target projects and customers that represent effective market entry points and to commence the building of a regional sales pipeline. This included the production of Spanish sales material and a series of in person local engagements with customers, supported by our Perth based geology teams.

A number of marketing initiatives were undertaken during the period including attendance at PDAC, and a demonstration GX10 as part of a manned booth at the European mining expo. Social media out-reach continued across the period with high- quality advances across key metrics such as audience growth and messaging effectiveness.

An updated investor deck and video presentation was also delivered through a live Webinar during the period in conjunction with general media engagements.

Building commercialisation and technology capabilities

The seasoned teams in Perth and Stockholm, comprising Engineering, Geology and Product Development teams, are working effectively together to accelerate commercial delivery.

Operational readiness including capability and capacity across people, processes, and systems will continue to be a priority in H2 FY22 to support deployments and scanning, whilst building the customer out-reach and sales pipeline.

Concurrent with the commercialisation process, the Orexplore Technology Platform is undergoing continual development to upgrade its capabilities through the Stockholm based Product and R&D group. The focus with the GX10 fleet is to increase performance and enhance functionality to underpin the growing suite of value propositions. During the quarter the Company made the decision to bring forward its larger core diameter handling project, with design and manufacture of upgraded parts and systems well underway. This larger core handling capability increases the serviceable market for the Company and has been frequently referred to as a valuable requirement for some customers during customer engagement activities.

The Orexplore Insight® platform remains a high priority for functionality and performance upgrades to support the delivery of the Company's value propositions. As the main user interface for the system for customer geologists and mining professionals it serves as the "steering wheel" of the system to allow the analysis of core and samples and serves as the platform for future application of advanced techniques such as machine learning.

The Company also seeks to develop further potential applications for the technology such as emerging assay efficiency optimisation, grade control products and sustainability enablers to be at the forefront of the industry.

On the corporate front, Greg Haskis was appointed new interim Chief Financial Officer, bringing over 30 years' experience, and a track record and knowledge of ASX regulatory compliance and involvement with technology companies. Mr Haskis succeeds Mr David French.

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Orexplore's Managing Director, Brett Giroud, commented:

"The June Quarter was a period of solid progress for Orexplore. Despite current macro conditions, our fundamentals have not changed, and our efforts through this period in deepening customer engagement and advancing our Value Propositions resulted in being awarded our first large contract in early July 2022 - a contract with Oz Minerals worth approximately $2.35 million."

"The engagement with local and global customers continues to increase in breadth and depth as the market becomes more aware of the multiple value propositions that can be achieved by a single, non-destructive core scan by the GeoCore X10 instrument"

"The applicability of our technology solutions span broadly across the mining value chain such as supporting exploration programs with "x-ray eyes" to orebody characterisation for Oz Minerals. Demonstrating value through our technology and solving pain points to improve productivity remains our focus."

"The global market opportunity is growing, and our priority is advancing our strategy and commercialisation."

Corporate & Financial

The Company's appendix 4C for the Quarter ending 30 June 2022 is attached. As at 30 June 2022, Appendix 4C, cash holdings were A$10.63 million with no debt.

Robust financial discipline continues to be a priority for the business.

Net cash operating cash outflows for the quarter under totalled $1.69 million (Q1 FY22: $1.66 million). Investment cash outflows to expand Company capability for Q2 FY22 were $302k (Q1 FY22: $405k).

In accordance with ASX listing rule 4.7C.3, payments to related parties of the Company and their associates during the quarter totalled $171k. These payments are related to the Managing Director salary and Non-executive Directors' fees.

Orexplore also held its Annual General Meeting on Friday, 27 May 2022, and all resolutions were passed.

Pursuant to ASX listing rule 4.7C.2, the Company advises the proposed use of funds contained in section 1.7 of Orexplore's Prospectus dated 22 November 2021 in comparison to the actual use of funds following admission of the Company to the official list of the ASX is as follows:

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Use of Funds	Estimate for the	Actual Use
	two years post	since ASX
	ASX admission	admission to
	including Priority	30 June 2022
	Offer Funds	$'000
	$'000
Business development, sales and marketing	3,750	377
Product and service development (incl. R&D)	6,400	1,786
Operations (site and laboratory)	1,400	425
Working capital/corporate expenses	2,974	1,096
Total	14,524	3,684

Working capital/corporate expenses actual use of funds includes approximately $315k of transaction expenses related to the Swick demerger and Priority Offer of which $179k plus GST will be reimbursed by Swick to the Company during Q3 FY22.

Orexplore confirms that it expects to utilise the funds raised under its Prospectus in accordance with the use of funds statements, and the key business objectives underlying the expected use of funds remain intact.

-ends-

This ASX announcement was authorised for release by the Board of Orexplore

Technologies Limited

About Orexplore Technologies

Orexplore Technologies Limited (ASX: OXT) is a globally focused mineral technology business concentrated on advancing the commercialisation of its Technology Platform across the mining value chain within the global metals and mining sector. The Company's Technology Platform consists of the GeoCore GX10® hardware product and Orexplore Insight user interface software, that is continually advancing through its in-housemulti-disciplinary research and development team based in Stockholm, Sweden.

Orexplore's first product, the GeoCore X10®, is a transportable X-ray rock mass scanning technology that converts drill core samples into a three-dimensional data set to provide a "through the rock" image of internal structures and texture in addition to elemental detections, and density.

The Company maintains two core-scanning laboratories in Stockholm where it undertakes scanning operations, and in its headquarters in Perth, Western Australia. Orexplore's talented global team includes consulting geologists, engineers, data scientists and physicists, and technology delivery experts. The group continues to advance its solutions through development and delivery of customer Value Propositions powered by its products.

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