• No material sales variance, order fulfillment within standard industry range
• Timely disclosure of ~3.5kt production shortfall against internal targets
• Regulatory notices did not impact processing capabilities or revenue generation

WA Kaolin Limited (WAK) provides detailed responses to an ASX query letter dated 5 March 2026. The company clarifies the distinction between its opening order book, actual sales, and production figures for Q2 FY2026. The 15,490-tonne 'opening order book' was a snapshot of customer demand, not a sales forecast, and the actual sales of 13,315 tonnes represented a non-material 2,175-tonne variance due to typical logistical factors. The company also disclosed a ~3,500-tonne shortfall in actual production against internal targets, which was promptly announced on 31 December 2025 once the variance was definitively quantified. WAK maintains that regulatory notices received, including a Prohibition Notice and various Improvement Notices, did not impact its processing capabilities or ability to generate revenue, as the company held a substantial 60,000-tonne run-of-mine stockpile. The company emphasizes that it adhered to its confidentiality obligations and that the market movement in its share price during the relevant period was consistent with normal market volatility.