Quarterly Update & Appendix 4C

• Biomass of 170 tonnes confirmed
• Restructure of the executive team and operating cost reductions implemented to reduce cost base by over $1 million per annum
• Record $2.35 million FY24 Ausindustry R&D claim submitted and approved in Q1

Rare Foods Australia Ltd reported a quarterly update for the period ending 30 September 2024. The company confirmed a total biomass volume of 170 tonnes, a 15% decline compared to the previous 12 months. This was primarily attributed to a reduction in juvenile abalone deployments in FY21 as a COVID-19 management strategy. The company implemented a significant cost reduction strategy, including a restructuring of the executive team, with Brad Adams becoming Managing Director and the CEO role held by Rob Jorden being made redundant. These changes, combined with other operational and corporate cost cutting measures, are designed to reduce the cost base of the business by over $1 million annually. The company also submitted and received approval on a record $2.35 million FY24 Ausindustry R&D application. The company continued to progress its retail customer experience, with the Ocean Pantry achieving a 42% increase in revenue compared to the same period in FY24. The collaboration between Winereef International and Rare Foods also achieved a significant milestone, with the development of the Subsea Estate brand for the first subsea wine project in the Southern Hemisphere. The company secured State Government funding for a 12-month project to progress the proposed Esperance aquaculture precinct and successfully achieved sales of live wild origin Roei and aquaculture reared Greenlip abalone. Cash receipts from operating activities for the quarter were $0.85 million, down 45% on the comparative FY24 quarter, resulting in negative cashflow from operations of $1.4 million for the quarter. However, the company's FY24 R&D refund in excess of $2.1 million has now been received, allowing for the repayment of debt and supporting the working capital requirements of the business moving forward into FY25.

The company is forecasting an improved level of cashflows from operating activities based on an increase in pre Chinese New Year sales and a reduction in juvenile deployment expenses.