DANAKALI Ltd., Eritrea - Colluli Potash Project

8:15 am Update on the Colluli Sale Transaction

1 December 2022ASX Release

Dear fellow shareholders
Update on the Colluli Sale TransactionThis  letter  is  to update  you  on  progress  made  on  the  proposed  transaction  with  Sichuan  Road  &  Bridge Group ("SRBG") announced on 3 October 2022 and provide guidance on the likely next steps. To date, we have made good progress through the due diligence process which is virtually complete. SRBG have  advised  us  that  all  reports  have  been  received and  reviewed, but further  clarifications  and explanations about the proposed transaction could be made during the PRC Government approval process. The definitive Share Sale Agreement ("SSA") is close to finalisation.  We are negotiating the final few points that need to be agreed before we can sign the SSA. After we have signed the SSA, we will issue a notice of meeting with an explanatory memorandum("NOM"). I expect the NOM to be issued approximately 2 weeks after we sign the SSA and for the shareholder meeting to approve the transaction to be held about 1 month after the NOM is issued. SRBG is well prepared for the PRC Government approval process they will need to follow before completing the transaction.Our  partners  in  Eritrea,  ENAMCO  and  the  relevant  Government  Departments  remain  supportive  of  the transaction and have been closely involved in helping us reach this point. The two major steps we don't control are the actual date of signing the SSA and the length of time it takes for SRBG to obtain the required PRC Government approvals. Overall, and subject to any unanticipated event or delay, I expect us to complete the transaction within the Indicative Timeline in our Announcement on 3 October 2022.
Your sincerely
Seamus Cornelius
Executive ChairmanDanakali Limited

ASX Release: 28 December 2022

UPDATE ON COLLULI DEBT FACILITY WITH AFREXIMBANK AND AFRICA
FINANCE CORPORATION

Danakali Limited (ASX: DNK) (Danakali or the Company) refers to its announcement dated
23 December 2019 regarding the US$200 million senior debt facility with African Export Import Bank
(Afreximbank) and Africa Finance Corporation (AFC) in relation to the development and construction
of the Colluli Sulphate of Potash Project in East Africa (Facility) whereby Colluli Mining Share Company (CMSC) was the borrower and DNK was the guarantor.
As announced by the Company on 3 October 2022 and 1 December 2022, the Company has entered
into a term sheet for the sale of its interest in CMSC to Sichuan Road and Bridge Group Co., Ltd.
One of the conditions precedent to completion of the sale is termination of the Facility.
CMSC has confirmed that it no longer requires the Facility to be made available to it. The Company
confirms there are no outstanding liabilities owed by CMSC to AFC or Afreximbank.
The Facility was terminated by CMSC with effect from 21 December 2022.
This announcement has been authorised for release by the Board of Danakali Limited.
For more information, please contact:
Danakali
Seamus Cornelius Greg MacPherson
Executive Chairman Chief Financial Officer

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