• Choron Funding Arrangements were separate, standalone transactions
• Financing arrangements assisted in monetizing mined rough diamonds
• Security arrangements were limited to the value of the goods being sold

Burgundy Diamond Mines Ltd refers to the ASX Query Letter dated 7 April 2026 and provides detailed responses. The company states that the Choron Funding Arrangements were separate, standalone transactions and not an overall 'umbrella' funding arrangement. Each arrangement was a form of cash-flow financing that assisted the company in monetizing its mined rough diamonds, thereby bringing forward sale receipts and improving cashflow. The security arrangements were effectively limited to the value of the goods being sold, with the security falling away as the 'financed' parcels of rough diamonds were delivered to the buyer, Choron. The company emphasizes that each arrangement was only ever contemplated as being outstanding for a very short time, with an average length of around 24 days. The company became aware of the various aspects of the Choron Funding Arrangements between 31 May 2025 and 28 August 2025. The company notes that the Choron Funding Arrangements were first disclosed in the 30 June 2025 half-year accounts, and that it did not consider the arrangements to be materially price sensitive, and therefore did not disclose Choron as the related party lender. The company confirms that it is in compliance with the Listing Rules, including Listing Rule 3.1.