Important Notice and Basis of Preparation

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• Overview & contents
• i. Important Notice and Basis of Preparation
• 1. Executive Summary
• 2. The Corridor
• 3. Operating Model
• 4. Commercial Model
• 5. Market and Competitive Position
• 6. SWOT and Strategic Response
• 7. Financial Projections
• 8. Capital Expenditure, Funding and the Balance Sheet
• 9. Sensitivity and Scenario Analysis
• 10. Risk Analysis
• 11. Regulatory and Compliance
• 12. Organisation
• 13. Implementation Roadmap
• 14. Key Performance Indicators
• 15. Investor Returns and Recommendation
• 16. Assumption Register
• A. Appendix A: Consolidated Financial Summary
• B. Appendix B: Round Trip and Fleet Schedules
• C. Appendix C: Funding, Debt Service and Balance Sheet Schedules
• D. Appendix D: Risk Register
• E. Appendix E: Glossary

This document has been prepared for Copperfrontline Logistics Limited, a proposed Zambian-registered cross-border haulier operating between the copper-producing districts of the southern Democratic Republic of the Congo and the Zambian Copperbelt on one side, and the port of Dar es Salaam on the other. It is not an offer of securities, nor a solicitation of an offer to buy, and it does not constitute investment, legal or tax advice.

Basis of the figures. The model runs monthly across sixty months, with an FY2032 to FY2034 harvest view appended. Vehicles are delivered through each year and begin earning on delivery. Productive capacity is calculated as average operating fleet multiplied by availability multiplied by round trips per available truck per month; revenue and variable cost follow from the number of completed round trips. The income statement, balance sheet and cash position are fully articulated: the balance sheet is derived rather than plugged and balances in every year.

Freight rates, diesel prices, transit charges, border dwell times and vehicle prices on these corridors move substantially and at short notice. The values used here are plausible planning figures, not quotations. Border procedures, axle-load enforcement, transit bonding requirements and permit regimes across Zambia, the Democratic Republic of the Congo and Tanzania change frequently. Any party relying on this plan must verify the current position independently before committing capital.

The model reports uncomfortable outcomes where the arithmetic produces them. The negative contribution of an unloaded return leg, the constraint that debt service cover places on growth, and the dependence of the equity return on holding through amortisation are stated in the executive summary rather than confined to an appendix.

Published benchmarks. The TAZARA railway runs 1 860 kilometres from the Zambian Copperbelt to the port of Dar es Salaam and is the longest dedicated mining rail corridor currently operating on the continent; a US$1.4 billion rehabilitation is in progress with passenger services restored in early 2026 and freight services running with improving reliability. The parallel road route carries the majority of freight by truck. Queues at Kasumbalesa have been measured in days rather than hours often enough that corridor planners build them in as a standing assumption. The Lobito Corridor, a 1 300 kilometre line to the Atlantic under Western-backed modernisation exceeding US$6 billion, closed a US$753 million financing package in July 2026 with a public target of cutting transport costs by 30 per cent, and holds reserved capacity agreements for between 120 000 and 240 000 tonnes of copper products a year; a US$5 billion, 830 kilometre Zambian extension is planned from 2026 for completion in 2030, targeting 2 million tonnes a year by 2031. Industry figures for 2026 put end-to-end delivery via Lobito at 12 to 17 days against 40 to 55 days on the eastern and southern routes, with southern routes to Durban or Cape Town exceeding 2 400 kilometres. Cross-border work on these corridors is quoted and invoiced in United States dollars, and any commercial vehicle on the Zambian network requires a road user permit. These are cited where used.

Currency. Revenue is denominated in United States dollars, which reflects the practice of mining-house and trader counterparties on this corridor. The majority of costs are also dollar-linked, since diesel, tyres, parts and asset finance all price in hard currency. Local-currency exposure is confined to wages, local services and part of the overhead base.

Taxation. Zambian corporate income tax is applied at 30 per cent with losses carried forward.

Confidentiality. This document is delivered in confidence to the named recipient. It may not be reproduced or circulated in whole or in part without prior written consent.