Shumba Energy : QUARTERLY MARKET UPDATE – 31 MARCH 2024

Suite 204

Grand Baie Business Quaters

Chemin Vingts Pied

Grand Bay, 30529

Republic of Mauritius

(A public company registered in the Republic of Mauritius - Company No. 111905 C1/GBL)

QUARTERLY MARKET UPDATE - 31 March 2024

Shumba Energy Ltd ("Shumba" or the "Company") is an energy development company based in Botswana and listed on the Botswana Stock Exchange (BSE: SHUMBA). Being based in a jurisdiction that continues to offer both a top investment rating for Mineral resources development by the Fraser Institute and the best credit rating in sub-Saharan Africa with a stable fiscal and political setting, is a major advantage and risk mitigator.

The company continues to strive to achieve key development objectives and maintains control and a leading position of the advanced energy projects in Botswana. Shumba continues to develop a portfolio of Projects for servicing Southern Africa's energy deficit with emphasis on state-of-art technology deployment and low impact emissions.

The Company's main activity areas include development of production and trading/export of thermal coal, generation of utility scale renewable energy by 2025, medium term generation of new base load energy from 'HELE' (High Efficiency Low Emissions) thermal power plants, and medium-long term production of Liquid Fuels using state-of-art STL (Solids to Liquids) technologies with experienced partners.

Shumba Energy has several energy assets in the advanced development stage as follows:

TATI SOLAR PV PROJECT - Ownership:80%

We are pleased to report that our flagship 100 MW solar PV project near Francistown, Botswana, is making steady progress towards financial closure. Despite the complexities involved, we maintain a cautiously optimistic outlook on achieving this critical milestone by the end of Q4 FY2024.

A significant step forward has been the selection of a Tier 1 Contractor as our preferred partner for the project. We are now focused on finalizing the capital investment requirements. Our current projections indicate that project completion is expected in Q4 FY2025, at which point we anticipate realizing substantial value for the company. The Tati project has also secured approval for water supply via a nearby pipeline, ensuring the availability of this essential resource during the construction phase.

Furthermore, we are delighted to announce that the project has been granted conditional membership by the Southern African Power Pool (SAPP) during the current quarter. This membership category is designed to support generators by confirming their participation in SAPP power markets once the projects become commercially operational. This development underscores the potential of our project and its future role in the regional power market.

Expenditures

The project development expenditures for the quarter were as follows;

All figures in USD
Description	Expenditure
Site Development	62 106
Technical Consulting	-
Legal	9 685
Insurance	-
Financial Advisory	-
Accounting & Auditing	-
Other Development Costs	56 872
Land Leasing	-
Total	128 663

SECHABA PROJECT - Licenses: Prospecting License 053/2005 & 218/2016; Ownership: 100%

Discussions on terms with potential investment and operating partners is still ongoing in the face of the changing energy landscape and realisation that to reach a lower emissions future with sustainable base load power availability for continued economic development still very much includes Coal and Hydrocarbons. Establishment of the generation offtake arrangements via wheeling of power via the BPC infrastructure and the marketing and sales of power via the SAPP (Southern African Power Pool) is ongoing and the company is still engaged with the authorities and affected parties with respect to the land rights award for the surface infrastructure to enable issue of the mining right.

MORUPULE SOUTH RESOURCES PROJECT - License: Prospecting License 121/2010; Ownership: 97.5%

Morupule South Resources Limited ("Morupule South") holds the exploration licenses over the Morupule South Project situated in the central eastern district of Botswana immediately south of Morupule Coal Mine with the prospecting license, PL121/2010 valid until 30 September 2024. Procedures around renewal of the licences have begun given the protracted nature of the obtaining of the land rights for the surface infrastructure to enable issue of the mining right.

The company disengaged with the department of mines on the obtaining of the bulk sample permission, as it was clear that such permit was not going to be issued without efforts to meet requirements that do not differ from a full mining right application. Accordingly, the company is proceeding in favour of the full mining licence application supported by an updated feasibility study.

MABESEKWA PROJECTS - License: Prospecting License 428/2009; Ownership: 100%

The Mabesekwa project area contains two elements, the Mabesekwa No.1 Mine and Independent Power plant to be developed within subsidiary Kibo Energy Botswana Pty Ltd (100% owned) and the Mabesekwa No.2 Mine and associated Coal to Liquids Plant to be developed under the subsidiary Coal Petroleum Ltd (80% owned).

The Mabesekwa Export Independent Power Project ("MEIPPP") development is still under discussion of terms for acquisition and control by an investor group from India.

The Mabesekwa No.2 Mine is planned to be developed to feed the Coal to Liquids (CTL) Plant facility to produce up to 30,000bpd clean burning liquid fuels and associated petrochemical by-products. The company continues engaging with a major trading house with respect to products offtake and distribution within Botswana and across the SADC regional markets.

Additional Information:

• The development activities per license and money used per activity in the quarter is disclosed in the table herein below. It is to be noted that prudently the company continues to limit external project development expenses in favour of continuing as much work as possible utilising internal resources of its professional experienced employee team.
• The quarterly cash flow update is attached herewith.

The abridged unaudited financial for the 6 months period ended 31st December 2023 were approved for publication on 25 March 2024.

The quarterly reporting to the department of mines is as follows;

All figures in USD

	PL053 & PL218			PL428		PL121
		Direct			Direct
Direct Expenditure		Expenditure			Expenditure
Drilling	-	Drilling	-		Drilling	-
Geotechnical	-	Geotechnical	-		Geotechnical	-
Environmental	-	Environmental	-		Environmental	-
Consulting	-	Consulting	-		Consulting	-
Total	-	Total	-		Total	-
Indirect		Indirect			Indirect
Expenditure		Expenditure			Expenditure
Salaries and		Salaries and			Salaries and
Wages	8 215	Wages		4 063	Wages	8 215
Travel &	-	Travel &		-	Travel &	-
Accommodation	Accommodation		Accommodation
Administrative	5 477	Administrative		2 739	Administrative	5 477
Costs	Costs		Costs
Financing Costs	127 274	Financing Costs		63 637	Financing Costs	127 274
Total	140 966	Total		108 262	Total	140 966

By order of the Board

This Announcement is issued, in compliance with the Botswana Stock Exchange Equity listing requirements and pursuant to Section 87 of the Securities Act 2005, Rule 5 of the Securities (Disclosure Obligation of Reporting Issuers) Rules 2007.

The Board of Directors of the Company accepts full responsibility for the accuracy of the information contained in this Announcement.

APPENDIX 8A

Mining Company Quarterly Cash flow Update

Name of Company
BSE Code		Quarter ended (''current quarter'')
	SHUMBA		31-Mar-24
Consolidated statement of cash flows	Current quarter	Year to date (6 months)
	Cash flows related to operating activities	USD	USD
1.1	Receipts from product sales and related debtors	-	-
1.2	Payments for	(a) exploration and evaluation	-	-
		(b) development	(115 797)	(336 209)
		(c) production	-	-
		(d) administration	(41 498)	(110 435)
1.3	Dividends received			-
1.4	Interest and other items of a similar nature received	-	-
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid		-	-
1.7	Trading Costs		-	-

Net Operating Cash Flows

Cash flow related to investing activities

1.8 Payment for purchase of:

		(a) prospects	-	-
		(b) equity investments	-	-
		(c) other fixed assets	-	-
1.9	Proceeds from sale of :	(a) prospects	-	-
		(b) equity investments	-	-
		(c) other fixed assets	-	-
1.10	Loans to other entities		-	-
1.11	Loans repaid by other entities		-	-
1.12	Proceeds from rights use		-	-
	Net investing cash flows
1.13	Total operating and investing cash flows brought forward	-	-
	Cash flows related to financing activities	-	-
1.14	Proceeds from issues of shares, options, etc.	-	-
1.15	Proceeds from sale of forfeited shares	-	-
1.16	Proceeds from borrowings		87 814	353 194
1.17	Repayments of borrowings		-	-
1.18	Dividends paid		-	-
1.19	Other (provide details if significant)	26 700	63 400
	Net financing cash flows
	Net increase (decrease) in cash held
1.20	Cash at beginning of quarter/year to date	55 568	42 836

1. Exchange rate adjustments to item 1.20
2. Cash at end of quarter

Payments to directors of the company and associates of the directors payments to related entities of
of the company and associates of the related entities	USD
1.23	Aggregate amount of payment to the parties included item 1.2	100 000
1.24	Aggregate amount of loans to the parties included in item 1.10	-
1.25	Explanation necessary for an understanding of the transactions
	Payment to the directors. Payment included as directors are considered related parties.	-

Non-cash financing and investing activities

1. Details of financing and investing transactions which have had a significant effect on consolidated assets and liabilities but did not impact cash flow
   None
2. Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest The outlays are mainly the development expenditure for the renewables projects

Financing facilities available

Add notes as necessary for an understanding of the position.

Amount available	Amount used
USD	USD

1. Loan facilities
2. Credit standby arrangements

Estimated cash outflows for next quarter	USD
4.1	Exploration and evaluation	-
4.2	Development	65 000
4.3	Production	-
4.4	Administration	35 000
	Total

Reconciliation of cash
Reconciliation of cash at the end of the quarter	Current quarter	Previous quarter
(as shown in the consolidated statement of cash flows)	USD		USD
to the related items in the accounts is as follows.
5.1	Cash on hand and at bank
5.2	Deposit at call	-		-
5.3	Bank overdraft	-		-
5.4	Other (provide details)	-		-
	Total: Cash at end of quarter (item 1.22)
Changes in interest in mining tenements
			Interest at the	Interest at the
	Tenement		beginning of	end of the
	reference	Nature of interest	quarter	quarter
6.1	Interest in mining	No change
	tenements
	relinquished,
	reduced or lapsed
6.2	Interests in mining	No change
	tenements

acquired or increased