Jervois Global Limited Quarterly Activities Report to 31 March 2024

Advancing on priorities

Jervois Global Ltd. ("Jervois" or the "Company") continued to focus on initiatives to ensure its business remains financially sustainable at historically low cobalt prices caused by the People's Republic of China ("PRC") oversupply from the Democratic Republic of the Congo ("DRC") and Indonesia.

Priorities and key milestones delivered in the quarter:

• Maximise margin at Jervois Finland and deliver operational improvements:

• US$0.7 million Adjusted EBITDA in Q1 2024. Cost reductions and delivery of improvement initiatives continuing to progress resilience to cobalt price weakness.

• Corporate level organisational restructure, with an effective 30% reduction of senior management positions due to redundancy and transition to part time; Non-Executive Directors' fees reduced by 30%.

• Execute U.S. DoD funded US$15.0 million ICO drilling programme and U.S. cobalt refinery studies3

• Surface drilling completed at the Sunshine deposit with an updated MRE published.

• Underground drilling at the RAM deposit commenced, initial three holes completed, assays pending.

• Two sites shortlisted for U.S. based cobalt refinery in Louisiana and Pennsylvania.

• Advance debt and partner financing process at SMP:

  • Engagement with parties for project-level funding for the SMP restart continued.

• Review partnership opportunities to crystalise and demonstrate value:

  • Initiatives across all assets are continuing - objective is to strengthen balance sheet and support strategic delivery.

  • Lenders are actively engaged in asset based partnering initiatives.

Jervois Finland

• Quarterly revenue: US$39.9 million (Q4 2023: US$38.7 million)

• Cash flow from operations: -US$3.6 million (Q4 2023: US$4.7 million)

• Adjusted EBITDA4 US$0.7 million (Q4 2023: US$0.5 million)

• Sales volume: 1,239 mt (Q4 2023: 1,098 mt)

• Production volume: 1,300 mt (Q4 2023: 1,102mt)

Sales and marketing

Jervois Finland produced 1,300 mt and sold 1,239 mt of cobalt in the quarter.

Figure 1: Jervois Finland sales volume by quarter (mt)

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Sales volumes to 31 March 2024 were 1,239 mt, 13% higher than previous quarter volumes of 1,098 mt. The increase in sales volumes on the prior quarter reflected an uptick in demand in end-use segments, particularly catalysts, along with additional cobalt sulphate sales into the nascent, but rising, battery market. Production volumes and product mix remains subject to continuous review and adjustment based on an assessment of end-use demand and considering target inventory levels. Jervois Finland's sales performance and outlook for key market segments under which Jervois Finland operates are summarised below.

Batteries:

• Current demand in this sector has improved from 2023 and looks to stabilise and meet expectations for the balance of 2024.

• Interest continues from both European and U.S. based electric vehicle (EV") OEMs (automakers) for long-term cobalt supply, with volumes starting in 2025 and rising significantly thereafter.

• The U.S. Inflation Reduction Act (particularly the associated Foreign Entity of Concern restrictions on Chinese links to secure U.S. EV tax credits) continues to drive interest in U.S. and other Western supply of battery raw materials, providing a key advantage to Kokkola as the leading global cobalt refinery outside of China.

Chemicals, Catalysts, and Ceramics:

• Chemicals: Demand continues to be stable in main chemical applications (copper electrowinning, coatings, and rubber adhesion).

• Catalysts: There are signs of a slowdown in demand from the oil and gas segment (processing / refining) as catalyst chemistries change.

• Ceramics: Continued reduced demand and rising competition (especially ex-PRC) in this sector, linked to lower end-use demand in the housing and construction sector. In particular, weak construction markets in China are causing Chinese cobalt suppliers to aggressively access export markets, driving down prices. Demand is volatile, and consumers often wait for favourable market pricing. Prices in ceramics look to remain under pressure though the coming months, with limited ESG considerations impacting buyer behaviour.

Powder Metallurgy:

• Competition in downstream markets (especially from PRC) continues to impact demand in all powder metallurgy applications.

• Automotive, oil and gas production (drilling), general engineering, and construction have not improved.

• Aerospace continues to be a bright spot, with the forecast remaining positive.

Financial performance

Jervois Finland achieved revenue of US$39.9 million in the quarter, a 3% increase compared to the prior quarter. The increase was principally due to higher sales volumes, although partially offset by lower realised pricing. The business improvement programme, introduced in Q4 2023, started to deliver positive impact, with operating costs trending lower in the quarter.

The cyclical weakness in cobalt prices persisted in the quarter due, in part, to continued market oversupply conditions instigated by the PRC, as outlined earlier. March 2024 sales were affected by strikes, including at the Port of Kokkola, which was closed from early March to early April 2024.

Adjusted EBITDA

Jervois Finland achieved Adjusted EBITDA in the first quarter of US$0.7 million, continuing a turnaround that commenced in the second quarter of 2023. Q1 2024 was the fourth consecutive quarter of positive Adjusted EBITDA, and the result is consistent with Jervois Finland's historical performance where the business model supports generation of a positive margin in an environment of cyclically weak, but stable, cobalt prices.

Figure 2: Jervois Finland Adjusted EBITDA by quarter (US$M, unaudited)

Both the cobalt chemicals and powder plants continued to perform well in the quarter, despite the port strikes, with internal targets for safety, production efficiency and product quality all met. Near-term focus for Jervois Finland remains on operational performance, cash generation, and risk management.

Mitigating measures were implemented in response to the port strikes during the quarter that offset much of the impact of interruptions associated with the strike. This included using alternative logistics routes for shipment of finished goods. The strikes have, however, resulted in temporary constraints in the availability of cobalt raw materials feed that are adversely impacting plant production levels in April 2024. Accordingly, lower than average production levels in April 2024, together with the annual maintenance shutdown in May 2024, will lead to lower-than-average volumes across the second quarter. Organisation optimisation at Jervois Finland continued to advance, with a 5% reduction in workforce and ~US$1.1 million (~€1.0 million) in annual payroll cost savings expected across the first half of 2024.

A reconciliation between Adjusted EBITDA, EBITDA, and Net Profit after Tax ("NPAT") for Jervois and Jervois Finland is included on page 11.

Cash flow performance

Cash flow from operations (before interest payments) was -US$3.6 million in the quarter.
This was primarily driven by working capital movements in early Q1 2024 and further exacerbated by the Finnish ports strikes which resulted in lower than budgeted sales in the quarter. Physical cobalt inventories reduced slightly by US$1.4 million from US$40.7 million at 31 December 2023 to US$39.3 million at 31 March 2024. This represented a reduction from 1,297 mt and ~78 days at 31 December 2023 to 1,281 mt and ~77 days at 31 March 2024 (based on a normalised 6,000 mt annual production rate). Jervois is continuing to execute an inventory management strategy aligned to a near-term target range of 90 days or less, in a manner that balances liquidity and risk management objectives.

Jervois USA

Idaho Cobalt Operations ("ICO"), U.S.

Jervois successfully delivered an inaugural JORC-compliant Mineral Resource Estimate ("MRE") for the Sunshine historic resource during the quarter, following 1,100 metres of initial surface drilling. The Sunshine deposit is a historic resource, located a short distance from the mill and concentrator facilities at ICO. ICO also hosts the main RAM deposit upon which initial mine development was based.

Sunshine's MRE was completed in accordance with the Australian JORC Code 2012, the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") definition standards and best practice guidelines (2014, 2018), and is reported in accordance with the Canadian Securities Administration's National Instrument ("NI") 43-101.

The Sunshine MRE was fully funded by the U.S. DoD under the DPA Title III US$15.0 million award ("Agreement Funding")5, signed in June 2023. The Agreement Funding is under the Manufacturing Capability Expansion and Investment Prioritization office of the Assistant Secretary of Defense for Industrial Base Policy using the U.S. DPA Title III authorities and utilises funds from the Additional Ukraine Supplemental Appropriations Act.

The Sunshine MRE represents the first completed objective of the programme under the DoD Agreement Funding to advance U.S. cobalt supply chain security.

Table 1: Sunshine Inferred Mineral Resource

Notes:

1. Mr. Andrew Turner, P.Geol. of APEX Geoscience Ltd., a Qualified Person as defined by NI 43-101 and a Competent Person as defined by JORC, is responsible for the completion of the inaugural Sunshine mineral resource estimation, with an effective date of 31 March 2024.

2. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

3. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

4. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could potentially be upgraded to an Indicated Mineral Resource with continued exploration.

5. The Mineral Resources were estimated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum, CIM Standards on Mineral Resources and Reserves, Definitions (2014) and Best Practices Guidelines (2019) prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.

6. The Sunshine cut-off grade of 0.25% Co is based on an estimated process cost and GA cost of US$154.00/t, due to narrow mineralised horizons, and metal prices of US$25.00/lb Co, US$3.00/lb Cu, and US$1,750/troy oz Au, with process recoveries of 91.0% Co, 95.4% Cu, and 84.9% Au. An average contribution of 21% to Co payable values from Cu and Au has been assumed based upon the relative concentrations of the payable metals within the reported resources.

7. The reported mineral resources are constrained by manually created wireframe solids (mineable shapes) that encapsulate contiguous blocks demonstrating reasonable prospects for eventual economic extraction within the mineable shapes.

More details on the Sunshine MRE can be found in the ASX announcement dated 11 April 20246.

With the successful completion of its Sunshine resource verification drilling and MRE, Jervois' DPA Title III efforts during the quarter switched to a focus on expanding the Indicated and Inferred depth continuity of the RAM MRE down-dip of the deposit's central zone and along strike to the north.

Underground development of exploration drill stations has progressed, with multiple stations now available. Underground drilling rigs and crews successfully mobilised to ICO in March 2024 to commence the extensional drilling initiatives7, with three drill holes complete, and assays pending.

After the quarter end, on Friday 26 April 2024, Jervois received a request from the DoD to stop work under the Agreement Funding pending resolution of unspecified environmental regulatory concerns. Jervois is complying and is engaging with the DoD to seek clarification.

U.S. cobalt refinery study

During the quarter, progress continued on site selection, basic engineering, and a bankable feasibility study ("BFS") for a U.S. domestic cobalt refinery, with works fully reimbursed under the previously outlined DoD Agreement Funding. During the quarter, Jervois shortlisted two locations - in Pennsylvania and Louisiana - with negotiations to host a U.S. cobalt refinery. Jervois also advanced engineering, environmental, and economic evaluations as part of the BFS which is led by AFRY USA LLC.

Jervois' proposed U.S. cobalt refinery will produce cobalt sulphate, for use primarily in EV batteries, which is not produced in the U.S. today. Based on projected U.S. lithium-ion battery chemistries, the refinery, once operational, is expected to be capable of supplying sufficient cobalt for about 1.2 million EVs each year.

Based on cobalt volume requirement guidance from existing and future battery customers within the auto supply chain, Jervois expects that U.S. cobalt sulphate demand will rise sharply with increased uptake of EVs across the latter part of this decade. Based on Jervois' ongoing negotiations with OEM (automaker) customers, including those in the U.S., OEM projected cobalt orderbooks are expected to expand rapidly from 2025.

São Miguel Paulista ("SMP") nickel and cobalt refinery, Brazil

Partner financing opportunities at SMP continued to progress, with parties continuing to engage on project-level funding for the SMP restart project.

Nico Young nickel-cobalt project, New South Wales, Australia

In light of recent volatility affecting nickel markets, particularly producers in Australia subject to PRC competition from Indonesia, Jervois has ended the formal divestment process for Nico Young. Jervois has historically invested >A$20 million in Nico Young. It is a strategic future source of Western nickel and cobalt should differential ESG and pricing standards be applied by either customers or governments in the future.

Corporate activities

Liquidity and balance sheet

Cash flow utilisation in Q1 2024 included the semi-annual interest payment on the ICO Senior Secured Bonds, paid in January 2024, working capital movements at Jervois Finland, and holding costs across ICO and SMP. Jervois ended the March 2024 quarter with US$26.6 million in cash, US$39.3 million in physical cobalt inventories in Jervois Finland, and total drawn senior debt of US$144.1 million.

Asset partnering initiatives to strengthen balance sheet are being reviewed in conjunction with lenders. Significant work has been completed with high-quality potential counterparties on asset-level investment opportunities since mid-2023. Several third parties have been advanced.

A key objective of the review is to better balance ownership across the portfolio, alleviating pressure on Jervois' balance sheet, and to provide liquidity that supports progression toward Jervois' goal of achieving a portfolio with three cash generating assets over the medium term, underpinned by a durable capital structure.

Organisational restructure

Jervois announced an organisational restructure in early March 2024, which included reduced senior corporate management roles, with 30% of full-time positions removed via either redundancies or executives transitioning to part-time. Jervois' Non-Executive Directors also reduced their fees by 30%, effective 1 February 2024. No awards under the Company's Short Term Incentive Plan were made to the Chief Executive Officer, executive, and corporate management team. Jervois has also frozen annual salary increases (generally linked to inflation) for 2024 across the corporate group, and at its sites, where legally permissible.

Environmental, social, governance ("ESG")

Dr. Jennifer Hinton (Group Manager - ESG) was invited by the EU to represent Jervois on the "Clean Transition Dialogue on Critical Raw Materials" held at Berlaymont in Brussels on 23 February 2024. The dialogue, chaired by Mr. Maros S?efc?ovic? (Executive Vice President of the European Commission), brought together 25 high-level representatives from the private sector, financial institutions, and social partners to discuss how to create a conducive, competitive business environment across the entire value chain required for the European Green Deal.

In conjunction with Jervois' responsible supply chain due diligence programme, Dr. Hinton also visited selected industrial, large-scale operations in the DRC during April 2024.

Engagement with the Cobalt Institute, including its Responsible Sourcing and Sustainability Committee ("RESSCOM") and Government Affairs Committee continues.

Exploration and development expenditure

In relation to the DoD funded surface drilling campaign at ICO, US$0.1 million was incurred during the quarter (funded by the DoD). No other material cash expenditure on exploration and development was spent during the quarter.

Insider compensation reporting

During the quarter, US$0.1 million was paid to Non-Executive Directors and US$0.1 million was paid to the CEO (Executive Director).

By order of the Board

Bryce Crocker

Chief Executive Officer

For further information, please contact:

Forward-Looking Statements

This news release may contain certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target, "plan", "forecast", "may", "schedule" and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to partnership for group operations, operations at Jervois Finland, drilling to be undertaken at ICO, U.S. refinery studies, reimbursement of funds to Jervois Mining USA Limited by the DoD, timing of restart of SMP refinery, and the reliability of third-party information, and certain other factors or information. Such statements represent the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance, or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules, and regulations.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Basis of preparation of financial information

Historical and forecast financial information

Financial information is prepared under Jervois Global Group accounting policies, which conform with Australian Accounting Standards and International Financial Reporting Standards ("IFRS"). The Jervois Finland financial results for the period post-acquisition are consolidated into the Jervois Global Group consolidated financial statements. All information presented is unaudited.

EBITDA for historical periods is presented as net income after adding back tax, interest, depreciation, and extraordinary items and is a non-IFRS/non-GAAP measure.

Reconciliation of NPAT to EBITDA and Adjusted EBITDA

EBITDA is a non-IFRS financial measure. EBITDA is presented as net income after adding back interest, tax, depreciation and amortisation, and extraordinary items. Adjusted EBITDA represents EBITDA adjusted to exclude items which do not reflect the underlying performance of the Company's operations. Exclusions from adjusted EBITDA are items that require exclusion in order to maximise insight and consistency on the financial performance of the Company's operations.

Exclusions include gains/losses on disposals, impairment charges (or reversals), certain derivative items, NRV adjustments to inventories, fair value adjustments on financial instruments, and one-off costs related to post-acquisition integration.

Refer to the table below for a reconciliation of NPAT to EBITDA and Adjusted EBITDA.

Tenements

Australian Tenements

Appendix 5B

Mining exploration entity or oil and gas exploration entity
quarterly cash flow report

Compliance statement

1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2 This statement gives a true and fair view of the matters disclosed.

Date: 30 April 2024

Authorised by: Disclosure Committee

(Name of body or officer authorising release - see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - e.g., Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

1 See page 11 for the definition of Adjusted EBITDA and basis of preparation.

2 Drawn senior debt represents the aggregate of amounts drawn under the Company's senior debt facilities (excludes Unsecured Convertible Notes that mature in July/August 2028). Amounts represent the nominal loan amounts; balances recorded in Jervois' financial statements under International Financial Reporting Standards will differ.

3 After the quarter end, on Friday 26 April 2024, Jervois received a request from the DoD to stop work under the Agreement Funding pending resolution of unspecified environmental regulatory concerns. Jervois is complying and is engaging with the DoD to seek clarification.

4 Information on the basis of preparation for the financial information included in this Quarterly Activities Report is set out on page 11.

5 See ASX announcement "Jervois to begin work funded by U.S. Department of Defense to advance U.S. cobalt supply chain security", 16 June 2023. After the quarter end, on Friday 26 April 2024, Jervois received a request from the DoD to stop work under the Agreement Funding pending resolution of unspecified environmental regulatory concerns. Jervois is complying and is engaging with the DoD to seek clarification.

6 See ASX announcement titled "Jervois completes maiden JORC Resource for Sunshine (updated)" dated 11 April 2024. In accordance with ASX listing rule 5.23.2, Jervois confirms it is not aware of any new information or data that materially affects the information included in the relevant market announcements referred to above and that the assumptions contained therein continue to apply and have not materially changed.

7 See ASX announcement "Updated RAM resource offers opportunity to extend ICO mine life" dated 19 April 2023 (Australia).

8 Excludes Jervois Finland staff costs which are included in 1.2(b) production.

9 Relates to the refinery study currently being undertaken in the United States.

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