Chief Financial Officer’s Pre-close statement for the six months ending 30 June 2026

Thungela Resources Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2021/303811/06)
JSE share code: TGA
LSE share code: TGA
ISIN: ZAE000296554
('Thungela' or the 'Company' and together with its affiliates, the 'Group')

Chief Financial Officer's Pre-close statement
for the six months ending 30 June 2026

Dear Stakeholder

At Thungela, safety is central to everything we do, with a zero-harm mindset deeply
embedded in our culture and every decision we make. We have operated a fatality-free
business for 39 consecutive months and remain steadfast in keeping safety our top
priority.

The health and well-being of our colleagues are prioritised across the business, including
those at Thungela Marketing International in Dubai. We continue to monitor the impact of
the ongoing conflict in the Middle East on our employees and the broader operating
environment. To date, our operations have continued without any safety incidents or
significant business disruptions.

Energy markets remain volatile as prices continue to respond to shifting sentiment around
the protracted Middle Eastern conflict and the disruptions to shipping through the Strait
of Hormuz. In recent weeks, brent crude oil and gas prices traded in wide ranges which
prompted brief sell-offs, based on reports of renewed US-Iran engagements, while also
reaching multi-year highs on concerns that tensions could persist longer than anticipated.

During the conflict, an estimated 10 to 14 million barrels per day of oil and approximately
one-fifth of global LNG supply were effectively displaced, supporting a higher floor for
energy prices. Against this backdrop, oil has fluctuated between USD90 and USD118 per
barrel, while European gas prices have moved more moderately - caught between tighter
global LNG availability and softer near-term demand, partly supported by milder weather
conditions.

Price movements have softened at times on signs of de-escalation and the current
reopening of the Strait of Hormuz, which remains a critical artery for global energy flows.
While the Strait is presently open and shipments have resumed, markets remain sensitive
to any potential disruption given its strategic importance.

Thermal coal markets broadly tracked the tone in oil and gas, initially strengthening on
higher oil and European gas prices, before retracting later as energy prices softened. The
Newcastle benchmark thermal coal price has tracked the higher energy market prices
and remained firm to date. However, the Richards Bay benchmark thermal coal price did
not accelerate at the same rate seen by the Newcastle benchmark thermal coal price,
mainly as a result of the slowdown seen in Indian buying activity. Physical coal demand
remained subdued, with end-users in India showing greater preference for cheaper, lower
quality material, while other Asian importers favoured cheaper Russian and Colombian
supply over South African and Australian higher quality cargoes. The protracted Middle
East conflict has resulted in renewed buying from the Indian market and this has been
supportive of the Richards Bay benchmark thermal coal prices seen over the most recent
weeks.

In the first half of the year, export saleable production is expected to be approximately
6.3Mt in South Africa and approximately 2.0Mt at Ensham. Export saleable production in
South Africa benefitted from improvements at Khwezela and a consistent strong
performance at Mafube compared to the prior period. Zibulo experienced an increase in
conveyor belt and support services challenges in the mining footprint that will be retired
once all production is shifted to Zibulo North Shaft. We believe these challenges are
transient and continue to receive the necessary operational and technical focus and
therefore, remain confident in achieving the full year export saleable production guidance
for the Group.

The following are the key insights into our performance for the period 1 January 2026 to
31 May 2026 (the year to date(1)) and our expectations for the six-months ending 30 June
2026 (H1 20261).

• The Richards Bay Benchmark coal price(2) has strengthened in 2026, with an
average of USD104.25 per tonne for the year to date, compared to USD89.53 per
tonne for FY 20251 (H1 20251: USD91.78).

• Discount to the Richards Bay Benchmark coal price is approximately 16% for
the year to date, compared to 16.6% for FY 2025 (H1 2025: 14.9%). The average
realised export price for product sold through the Richards Bay Coal Terminal for
the year to date is USD87.60 per tonne, compared to USD74.67 per tonne for FY
2025 (H1 2025: USD78.13). The discount is mainly driven by a lower quality sales
mix, as a higher proportion of lower quality coal was railed from stockpiles.

• Foreign exchange rate volatility has had a material impact on the Group's
financial performance. The US dollar has remained weak, largely driven by cyclical
shifts in federal reserve monetary policies. The South African rand was stronger
relative to the US dollar, trading at an average rate of R16.40 per dollar for the year
to date, compared to R17.89 for FY 2025 (H1 2025: R18.39). This has resulted in
an average realised export price of R1,437 per tonne for the year to date,
compared to R1,336 per tonne for FY 2025 (H1 2025: R1,437).

• Export saleable production in South Africa is expected to be approximately
6.3Mt for H1 2026, compared to 6.4Mt in H1 2025. Together with the operational
improvement initiatives at Zibulo and the traditionally stronger operational
performance during the second half of the year, the export saleable production
guidance of 13.0Mt to 13.6Mt remains appropriate.

• Export sales for South Africa, including third-party sales of approximately 0.7Mt,
is expected to be approximately 7.5Mt for H1 2026, compared to 6.6Mt for H1
2025. The higher export sales was enabled by improved Transnet Freight Rail
performance at an annualised run rate of approximately 60.8Mt as well as the
utilisation of rail from coal export producers who did not have sufficient coal
available to fully utilise their rail allocation.

• FOB cost per export tonne excluding royalties for South Africa for H1 2026 is
expected to be marginally above the guidance range of between R1,320 to R1,370
per tonne, in line with lower export saleable production in H1 2026. However, for
the full year, cost guidance remains appropriate as production run rates are
expected to improve in the second half of the year.

• The Newcastle Benchmark coal price(3) has averaged USD124.79 per tonne for
the year to date, compared to USD105.37 per tonne for FY 2025 (H1 2025:
USD102.51).

• Discount to the Newcastle Benchmark coal price has increased to 13.9% for
the year to date, compared to a discount of 0.4% for FY 2025 (H1 2025: premium
of 6.6%). The higher discount to the index is mainly due to fixed price tonnes
negotiated prior to the stronger price environment impacted by the Middle East
conflict. In addition, we have sold approximately 360kt under a fixed price contract
which is invoiced at the FY 2025 contract price until the ongoing negotiations
conclude in H2 2026. The average realised export price in Australia for the year to
date was USD107.50 per tonne, compared to USD104.93 per tonne for FY 2025
(H1 2025: USD109.28).

• Export saleable production at Ensham(4) for H1 2026 is expected to be
approximately 2.0Mt, compared to 1.6Mt in H1 2025. Production in H1 2025 was
impacted by the more challenging geology which was transient. The export
saleable production full year guidance of 3.9Mt to 4.2Mt remains appropriate.

• Export equity sales for Ensham(4) is expected to be approximately 2.0Mt for H1
2026, compared to 1.9Mt for H1 2025.

• FOB cost per export tonne excluding royalties at Ensham for H1 2026 is
expected to be lower than the guidance range of R1,480 to R1,570 per tonne,
mainly due to the impact of the stronger South African rand on the consolidation of
the Australian operations. The full year cost guidance remains appropriate.

• Capital expenditure for the South African operations for H1 2026 is expected
to be approximately R600 million. This consists of R500 million relating to
sustaining capital and expansionary capital of R100 million. The full year guidance
range of R700 million to R1,000 million for sustaining capital remains appropriate.

• Sustaining capital expenditure at Ensham for H1 2026 is expected to be
approximately R250 million. The full year guidance range of between R500 to
R700 million remains appropriate.

Portfolio optimisation in South Africa

Our South African portfolio has continued its transition, with Goedehoop North and
Isibonelo mines reaching end of life. In line with our portfolio optimisation strategy, we
have concluded the sale process of the Kleinkopje mining right at the Khwezela mining
colliery and continue to progress the sale of Goedehoop North. The Kleinkopje
transaction will result in a non-cash reduction of the environmental provisions of
approximately R1.0 billion for the areas sold and is likely to benefit expected earnings in
H1 2026. We will provide an update on the impact of the transaction on expected earnings
prior to the release of the interim financial results.

Commitment to capital allocation framework

We expect net cash(5) at 30 June 2026 to range between R5.9 to R6.1 billion. The net cash
range includes approximately R1.0 billion of cash generated from foreign exchange
derivatives.

The board reaffirms its commitment to the Company's dividend policy, which is to
distribute a minimum of 30% of adjusted operating free cash flow(6) to shareholders.
Furthermore, the board will consider an appropriate cash buffer which provides flexibility
to prioritise shareholder returns and invest through the cycle.

We remain focused on safety and operational improvements and acknowledge the impact
of other macro-economic factors on the business. Our robust balance sheet position
continues to provide resilience and a solid foundation for long-term value creation.

The Group expects to release its interim results on 17 August 2026.

Deon Smith
Chief Financial Officer
Annexure A: Operational performance

Table 1: Export saleable production by operation
Export saleable H1 2025 H1 2026 % change
production (Mt) Actual Forecast(7)

(a) (b) (b-a)/a
South Africa 6.4 6.3 (2)%
Underground 4.7 4.1 (13)%
Zibulo 2.2 1.8 (18)%
Greenside 1.1 1.1 —%
Goedehoop(8) 1.4 0.2 (86)%
Annea 0.1 1.0 900%

Opencast 1.7 2.2 29%
Khwezela 0.8 1.3 63%
Mafube 0.9 0.9 —%

Australia 1.6 2.0 25%
Ensham(9) 1.6 2.0 25%

Total 8.0 8.3 4%



Table 2: Export sales
Export sales (Mt) H1 2025 H1 2026 % change
Actual Forecast(7)
South Africa 6.4 6.8 6%
Underground 5.0 4.6 (8)%
Opencast 1.5 2.2 47%

Australia 1.9 2.0 5%
Ensham 1.9 2.0 5%
Underground 1.9 2.0 5%

Third-party(10 ) 0.2 0.7 250%

Total 8.5 9.5 12%

Footnotes

1. "Year to date" refers to the period from 1 January 2026 to 31 May 2026.
H1 2026 refers to the period from 1 January 2026 to 30 June 2026.
H1 2025 refers to the period from 1 January 2025 to 30 June 2025.
FY 2025 refers to the period from 1 January 2025 to 31 December 2025.
2. Richards Bay Benchmark price reference for 6,000kcal/kg thermal coal exported
from the Richards Bay Coal Terminal.
3. Newcastle Benchmark price reference for 6,000kcal/kg coal exported from
Newcastle, Australia. The NEWC Index is the main price reference for physical
coal contracts in Asia and is the settlement price for a significant volume of index-
linked contracts.
4. Production at Ensham is crushed and screened before being sold into either the
export or Australian domestic market. Sales into the Australian domestic market
are at export parity prices and, as a result, all production at Ensham is considered
to be export saleable production.
5. Net cash, an alternative performance measure, is cash and cash equivalents less
restricted cash, which is cash held by the Group, that is not held at the discretion
of the directors.
6. Adjusted operating free cash flow is net cash flows from operating activities less
sustaining capex.
7. Based on the latest available management forecasts. Final figures may differ by ±
5%.
8. Export saleable production for Goedehoop includes approximately 243kt (2025:
283kt) attributable to the Nasonti operation.
9. Export saleable production for Ensham in H1 2025 includes 79kt purchased from
Bowen.
10. Third-party sales reflect volumes purchased from operations not owned by
Thungela.


Review of Pre-close statement
The information in this Pre-close statement is the responsibility of the directors of
Thungela and has not been reviewed or reported on by the Group's independent external
auditor.

A trading statement will be released once the Group has reasonable certainty on the
expected ranges for earnings per share and headline earnings per share and to the extent
required by the JSE Listings Requirements.

Investor call details
A conference call and audio webinar relating to the details of this announcement will be
held at 12:00 SAST on Tuesday, 30 June 2026. A recording of the audio webinar will be
made available on the Thungela website on the same date –
www.thungela.com/investors.

Conference call registration:
https://services.choruscall.it/DiamondPassRegistration/register?confirmationNumber=6078558
&linkSecurityString=11f4fe32e0

Audio webcast registration:
https://themediaframe.com/mediaframe/webcast.html?webcastid=7nNrMxz8

Disclaimer

This announcement includes forward-looking statements. All statements other than
statements of historical facts contained in this announcement, including, without
limitation, those regarding Thungela's financial position, business, acquisition and
divestment strategy, dividend policy, plans and objectives of management for future
operations (including development plans and objectives relating to Thungela's products,
production forecasts and Reserve and Resource positions), are, or may be deemed to
be, forward-looking statements. By their nature, such forward-looking statements involve
known and unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Thungela or industry results to be materially
different from any future results, performance or achievements expressed or implied by
such forward-looking statements. The Group assumes no responsibility to update
forward-looking statements in this announcement except as may be required by law.

The information contained in this announcement is deemed by the Company to constitute
inside information as stipulated under the market abuse regulation (EU) no. 596/2014 as
amended by the market abuse (amendment) (UK mar) regulations 2019. Upon the
publication of this announcement via the regulatory information service, this inside
information is now considered to be in the public domain.

Investor Relations
Hugo Nunes and Shreshini Singh
Email: ir@thungela.com

Media
Hulisani Rasivhaga
Email: hulisani.rasivhaga@thungela.com

UK Financial adviser and corporate broker
Panmure Liberum Limited

Sponsor
Rand Merchant Bank (a division of FirstRand Bank Limited)

Johannesburg, South Africa
30 June 2026

Date: 30-06-2026 09:00:00
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