Zeotech (ZEO) Investor Update summary

DSO offtake agreement and commercial terms

• Signed a binding DSO offtake agreement with MSI, valued at nearly $200 million over five years, with margins of 30%-35% and expected annual EBITDA of $10-$12 million starting early next year.

• MSI receives exclusive rights in China, South Korea, and Japan, with committed minimum annual quantities of 800,000 tonnes kaolin DSO and 150,000 tonnes cosmetic kaolin DSO over five years.

• Agreed prices and volumes are within 5% of the weighted average sale price from the AusPozz Project PFS.

• Minimal capital expenditure required (~$7 million), enabling rapid commencement and early cash flow.

• The agreement is legally enforceable, with all core terms fixed, and will transition to a long-form contract soon, subject to standard conditions precedent and financial close.

Operational and logistical advantages

• The Toondoon deposit is close to Bundaberg Port, with low transport costs and access to underutilized port facilities.

• The DSO product is high-purity kaolin, requiring no refining, and is highly competitive in global markets.

• MSI, a major global kaolin trader, is the sole customer, simplifying operations and reducing risk.

• The agreement covers both standard and cosmetic-grade kaolin, with the latter offering higher value and growth potential.

• All logistics are streamlined, with free-on-board terms transferring shipping risk to the customer.

Project development and operational status

• Mining activities at Toondoon Kaolin Project are anticipated to commence in the first half of 2026.

• Project comprises an approved mining lease and covers over 28,000 hectares near Mundubbera, Queensland.

• Simple open-cut mining operation with direct access to local roads and the Port of Bundaberg.

• Approvals for access roads, cultural heritage, and environmental management are progressing.

• Company owns 682ha of freehold land covering the mining lease, supporting future expansion.