EXR Progress Tracker

Disclaimer: We are NOT renewable energy development experts - this document is used by our team internally to try and track the company’s progress towards building a green hydrogen project, it should not be relied upon by anyone to make any decisions. This document will change over time as the project evolves. For all disclaimers and disclosures please visit our website.

Project 1: Mongolian Gas Project

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Project 2: Mongolian Green Hydrogen Project

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Project 3: Queensland Gas Asset

Our Big Bet:

“EXR to achieve a $1BN market cap through successfully advancing one or more of its three projects: its Mongolia gas project, Mongolia green hydrogen project, and/or its Queensland gas project.”

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NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is a lot of work to be done, many risks involved - just some of which we list in our EXR Investment Memo. Success will require a significant amount of luck. There is no guarantee that our Big Bet will ever come true.

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Project 1:

Mongolian Gas Project “Nomgon IX PSC”

2018 EXR Acquires Nomgon IX PSC

December 2018:

• EXR completed acquisition of project owner Golden Horde; gains managing director Neil Young (ex-Santos) with it.

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April 2019:

• Richard Cottee appointed Chairman. Cottee took Queensland Gas Company from a $20M capped junior into a $5.8B takeover play.

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May 2019:

• Stephen Kelemen, who previously led Santos’ coal seam gas team is appointed to board

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2019 Drilling Program First Gas Discovery

Aiming to discover thick gassy coal seams below 300 metres.

• 4 wells drilled in 2019

Gas Discovery in Nomgon-1 core-hole well

• Net coal thickness: Very thick coal seam of 71m (largest coal seam 37m) intersected
• Gas Content (Raw): 5.3 m3/t f
• Ave Gas Content (DAF): 8.9 m3/t
• Tests from Nomgon-1 indicate main seam is fully gas saturated

Read our full commentary on this news

Results compare very well with

CBM projects globally

EXR developed CBM leads defined by surface outcrop, gravity and 2D seismic mapping. High-graded focus areas:

2020 Drilling Program New CBM bearing sub basin

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Nomgon-2 appraisal core-hole well

• Indicates an exceptionally thick coal seam that stretches 1km between the Nomgon-1 & Nomgon-2 wells.
• Gas content almost identical to the Nomgon-1 well, averaging >5 m3/t (raw).
• Fully gas saturated coals

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Nomgon-2 indicates that the earlier high gas saturation levels from Nomgon-1 were not a one-off.

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November 2020 - EXR discovered a new sub-basin

• Yangir 1S strat-hole well intersects 27 metres of gassy coals in a new sub-basin.
• Observed very active gas bubbling from coals recovered to surface

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Read our full commentary on this news

June 2020: EXR executes MOU with Mongolia’s MT Group to develop a small scale LNG (SSLNG) plant to supply fuel to the South Gobi’s large coal trucking fleet.

7 Wells Drilled in 2020

2 CBM bearing sub-basins now identified

December 2020 - Prospective Resource gets bigger

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Independent Prospective Resources report updated.

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Unrisked and Risked Prospective Resources have increased significantly in all cases from the 2018 estimates:

• Risked 2U (best case) of 14.6 Tcf — a 92% increase from the 2018 estimate
• Chance of Geological Success now 30% — a 58% increase from the 2018 estimate

CBM bearing areas identified by EXR and independent reserve auditor ERCE:

2021 Drilling Program - 3 potentially productive sub-basins

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Read our full commentary on this news

EXR embarks on new ~30 well program

Designed to accrue resources across the PSC, EXR’s “rinse and repeat” model for the repeatable and low cost discovery and appraisal of gas continued to successfully roll out in 2021.

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Utilising seismic as a very low cost way of expanding geological knowledge of a vast region

Sept 2021 - New sub-basin: Richcairn-1S well opens up another new and potentially very extensive coal-bearing basin

April 2021 - Independent Prospective Resource Booking

The 2C resources are more than sufficient to provide gas for the expected effective life of the power plant:

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Gas fired power project: Executed a MOU with the Ministry of Energy on a framework to investigate and seek to develop a gas fired power project in the South Gobi region.

Entered into an Agreement with CBM to power engineering specialist company Clarke Energy to progress a feasibility study into this gas fired power project.

July 2021 - Exploration continues (update)

EXR is utilising two local drilling sub-contractors and deploying three rigs.

• The Venetian-1 exploration well has discovered another coal-bearing sub-basin. It was drilled to 882 metres and intersected 6.5 metres of coal and carbonaceous siltstone in the CBM depth window.
• The Orio-1 exploration well has recently spudded in an area to the West of Yangir.
• The drilling of the Bulag Suuj-2 well has been slower than anticipated and had yet to reach the prognosed Total Depth of 800 metres, due to mechanical issues.
• A new well, Yangir-5, has spudded after the Yangir-4 well did not reach total depth, but did encounter coals in the CBM depth window.

Production testing is close

EXR is in the process of de-risking one of its project areas via production testing.

12 September 2022 Pilot Production Program commenced

Nomgon pilot production program is underway with the first CMB gas well spudded, the Nomgon-8 well.

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The 2 well (Nomgon-8 and Nomgon-9) drilling program is expected to take less than 30 days. Pilot production testing operations to begin within weeks after the wells’ completion.

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2018 Nomgon IX PSC

A giant 30,000km² coalbed methane (CBM) (or coal seam gas), Production Sharing Contract (PSC) in Mongolia’s Gobi region near the Chinese border.

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September 2018: PSC signed

• Then project owner Golden Horde Ltd executes Nomgon IX CBM Production Sharing Contract (PSC) with the Mineral Resources and Petroleum Authority of Mongolia.

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November 2018: Maiden Prospective Resource

• Exploration activities lead to maiden prospective �resource report for the Nomgon IX PSC:
• Independently certified 7.6 TCF risked CBM gas Prospective Resource (40.1 TCF unrisked)
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12 September 2022 Exploration update

Since its last CBM update in July, EXR has drilled the Bulag Suuj-2, Yangir-5, Orio-1 and Big Slope-1 exploration wells.

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• Bulag Suuj-2 well determined that the coals intersected at Bulag Suuj-1 were deeper than 1,000m at this down-dip step-out location.
• The Orio-1 and Yangir-5 wells failed to reach their target depths due to various drilling problems.
• Big Slope-1 is still drilling, having already cored ~10 metres of coal. Visible gas was seen associated with the coals and appears to represent a new CBM discovery for EXR (subject to final logging).
• Currently using 3 local rigs. Drilling with a new technically advanced, larger mineral-style rig is expected to begin within the next few weeks.

01 March 2023 - Gas production milestone

EXR is now producing ~200,000 standard cubic feet per day (scfpd) of gas and ~150 barrels of water per day.

For context, EXR made a comparison to other Coalbed Methane Gas projects in China that are producing gas.

Our key takeaway was the ramp up time for other coalbed methane gas projects that typically reach peak production rates after ~12 months. This could mean EXR’s production rates could continue improving as the production program continues.

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24 March 2023 Operational update

Pilot Production update:

• Pilot production from the Nomgon-8 and 9 wells passed the key milestone of flowing 200,000 standard cubic feet per day (scfpd) of gas in March for the first time.
• EXR shut-in the two wells to record downhole pressure buildups. So far there are indications of good reservoir pressure support at the Nomgon-9 well.
• EXR plans to continue the extended production test for “around another couple of months” to maximise the data gathering aim of the pilot.

As for EXR’s 2023 exploration drilling program, the company says that the standard government mandated tendering process is almost complete.

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This should lead to the award of tenders and the initiation of the drilling program for 2023.

Project 2:

Mongolian Green Hydrogen Project “Gobi H2”

April 2021 - Hydrogen ambitions announced

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Hydrogen is highly complementary to EXR’s existing natural gas related assets and experience in Mongolia.

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Gobi region’s weather makes it ideally suited for green hydrogen production (windy, sunny).

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Read our full commentary on this news

EXR’s quarterly reveals that it has

• Created a clean energy subsidiary AND
• Procured a SODAR sun and wind monitoring machine which has been shipped to Mongolia.

October 2021 - MOU with Mongolia’s Ministry of Energy

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EXR signs MoU with Mongolia’s Ministry of Energy to cooperate over hydrogen

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EXR also commissioned a report to evaluate Mongolia’s wind and solar potential in the South Gobi desert:

• Indicates very high quality of South Gobi renewables
• The combined wind and solar capacity factor is exceptionally high
• This is highly supportive of EXR’s complementary hydrogen strategy

Read our full commentary on this news

June 2022 - MOU signed with Softbank’s SB Energy

Read our full commentary on this news

EXR executes joint hydrogen MOU with SoftBank Group subsidiary SB Energy - providing the foundation for a significant partnership.

Under the MoU EXR and SB Energy will cooperate on research and development of the “Gobi H2” green hydrogen production project in the Gobi Desert of Mongolia.�

The plan is to:

• Proceed with certain pre-feasibility studies in order to first realise a small-scale pilot project

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• The eventual goal to jointly develop a gigawatt-class green hydrogen production project in Mongolia.�

August 2022 - Gobi H2 update

Water

• Three water exploration wells have been drilled in the Gobi to demonstrate that new sources of water can readily be found and at modest cost.
• Along with renewables, water is the other key ingredient needed to produce green hydrogen

Renewables

• SODAR equipment to measure wind resources found that a wind farm here would generate as much energy as the top quartile of operating wind-farms in Australia.
• Another two new SODARS are being installed to gather site specific data

EXR outlined the activities being currently undertaking alongside Softbank after the parties recently toured the region.

Other progress:

• Explore the potential to use green hydrogen to produce green ammonia;
• Engaging with local finance institutions on project financing for the pilot project + potential sources of Japanese government fiscal support;
• Looking to engage with potential mining companies as hydrogen customers in Mongolia and China;
• Site options for the pilot are being evaluated
• Engineering infrastructure consulting firm has been engaged to undertake a pre-feasibility study (PFS) into the proposed pilot project.

Read our full commentary on this news

February 2023 - Term sheet with Softbank subsidiary

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EXR executed a term sheet with Softbank subsidiary, SB Energy, over the co-development of the Gobi H2 green hydrogen project.

The Term Sheet provides a pathway to a formal joint development agreement and a 50/50 joint venture once a FEED (Front End Engineering and Design) entry decision is made regarding a green hydrogen pilot project.

EXR and SB Energy aim to reach this FEED stage by the middle of this year.

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SB Energy is the ​​vehicle in which Softbank invests in renewable energy assets.

It has a renewable energy asset portfolio largely based in Japan, and the operational 50 MW Tsetsii Wind Farm in the Gobi region of Mongolia.

As a renewable energy resource, SB Energy’s wind farm could be used to produce green hydrogen energy.

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Project 3:

Queensland Gas Asset “Grandis Gas Project / ATP 2044”

29 August 2022 - EXR acquires Queensland Gas Asset

• Prospective for gas & condensate trapped in conventional & unconventional sandstones & fractured coals.
• Has a material prospective resource.
• EXR intends to leverage its team’s Qld experience - a side bet to its Mongolian operations.
• EXR paid the owners = $500,000 + ~$3M worth of EXR shares + 3% overriding royalty on hydrocarbon liquids production.

EXR aims to drill a well in ATP 2044 in 2023

• Located near the Wallumbilla gas hub, giving local and international market access.
• Located in the Taroom Trough where both international and Australian majors actively working the play.

Queensland Gas Project

Previous drilling by BG Group (now Shell) at Daydream-1 proved BCG play concept, 2km west of permit.

Well flowed an instantaneous rate of 3.5 MMcfpd from an interval covering 1/10th of the gross prospective reservoir section.

EXR’s primary objectives here are Permian aged sandstones and coals, with a globally relevant prospective gas resource.

These same objectives are being pursued by neighbouring Shell and Santos.

10 November 2022 - Initial Contingent Resource Booking

Independently certified by ERCE, Initial contingent resources (2C) booked of 395 billion standard cubic feet of gas.

EXR has two primary targets in the Grandis Gas Project:

1. Tight unconventional sandstones.

2. Fractured thermally mature coals.

The contingent resources assigned to only the tight sandstones, & doesn’t include the fractured thermally mature coals.

Daydream-2 appraisal well planned to be drilled in 4Q 2023. Aiming for increased flow rates from multiple zones – success will facilitate reserves and increased contingent resource bookings.

29 March 2023 - Grandis gas project update

In an update on the Qld gas project, EXR confirmed:

• Land access agreement executed
• Contractor selection process well supported
• Daydream-2 appraisal well on track for drilling year end 2023
• Evolving Federal Government emissions policies support Grandis

Elixir’s Managing Director, Mr Neil Young, said:

“Our Grandis Gas Project is proceeding well as we progress towards the drilling of the Daydream-2 appraisal well by the end of this year.

“This is a very high impact well where success will add material volumes of now even more competitive gas resources to a gas market that Government bodies such as the ACCC and AEMO notes will very soon be desperate for new gas supplies.”

17 May 2023 - QLD Drilling eligible for R&D rebates

EXR confirmed:

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• Up to 43.5% of the costs of “activities associated with” its QLD drill program will be eligible for R&D rebates.
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Drilling expected later in 2023/early 2024.

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EXR also presenting a technical deep dive on the project at the Australian Petroleum Production and Exploration Association (APPEA) conference.

3 July 2023 - QLD gas drilling set for October 2023

Preparation for drilling continues

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Drilling expected to start in Q4 2023.

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16 August 2023 - QLD gas drilling date set

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EXR to drill its Daydream-2 well in the last week of October.

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Video preview for EXR’s well

13 September 2023 - Santos data sharing agreement

Data sharing agreement signed with $25BN Santos.

Data shared on wells across two permits - EXR’s permit (ATP 2044) and Santos’ permit (ATP 2056).

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EXR to drill its Daydream-2 well in the last week of October.

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