Quarterly Activities Report For The Period Ended 30 June 2023

Elixir Energy Limited (“Elixir” or the “Company”) is pleased to present its Quarterly Report and Cash Flow Report.

HIGHLIGHTS

• Rig procured for Daydream-2 well – due to spud in October
• Federal funding obtained for Daydream-2 well
• Nomgon CBM appraisal and exploration wells encounter gassy coals
• Nomgon Pilot Project extended
• Gobi H2’s bankable wind/solar capacity factor considered world class

MANGAGING DIRECTOR’S REPORT TO SHAREHOLDERS FOR THE QUARTER

The last quarter saw a number of global developments which in our view reinforced a growing recognition that the demand for gas will endure for the very long term. Indeed it can be increasingly seen that gas is a vital under-pinning tool – not an opponent – of the desired clean energy transition.

These developments included:

• Various gas buyers – particularly but not exclusively Chinese companies - entering into new LNG purchase contracts for periods in excess of twenty years.
• The European oil and gas majors Shell and BP publicly stating that cutting oil and gas production prematurely would be dangerous and counter-productive, particularly for the World’s poor.
• The world’s two largest mining companies, BHP and Rio, noting that hydrogen would likely have specific not widespread roles to play in the energy transition.
• Japanese calls for a global collective to meet gas storage and security of supply needs, similar to the OECD’s long term framework for petroleum strategic reserves.

And last but very far from least for Elixir, the Australian Government issuing a final Code of Conduct for the East Coast gas industry that represented a major retreat from the market intervention originally announced in late 2022.

In December last year Canberra issued an unexpected policy change – that gas prices in the East Coast would be capped for one year at $12/GJ and thereafter would be regulated to be “reasonable”.

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