Quarterly Activities Report for the Period Ended 31 December 2023

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

HIGHLIGHTS

• Daydream-2 well successfully drilled on time and under budget
• Gas flowed from a permeable zone provided unexpected upside
• Daydream-2 now proceeding to stimulation and flow testing stages
• Nomgon pilot continues to make steady progress
• $1.8 million received from Origin Energy under Information Sharing Agreement
• Strong “net” cash position of $16 million fully funds work programs for the year

MANGAGING DIRECTOR’S REPORT TO SHAREHOLDERS FOR THE QUARTER

During the last quarter Elixir drilled the highest impact well in the Company’s history: Daydream-2:

Daydream-2 Flare

The results from this well greatly exceeded our pre-drill expectations on multiple fronts:

• The well was drilled safely, on time and under budget, to a depth of 4,300 metres. Elixir understands this is the deepest well drilled in Queensland for a decade and this achievement is a great credit to our internal team and suite of contractors
• The target gas-bearing Permian section was logged with a gross 607 metres. This section will be the subject of a multiple interval stimulation and flow testing program in the first half of 2024.
• An initial net pay figure in the gas-bearing sandstones in the was logged at 154 metres. This figure is subject to further ongoing analysis.
• An additional 65 metres of gassy coals were logged. Elixir’s plans for the next 6 months include the stimulation and flow testing of these coals, which if successful should add material new contingent resources.
• An unexpected permeable zone was intersected – which free-flowed gas to surface without stimulation from a depth of 4,200 metres.
• Strong over-pressures were encountered – which is a key factor to support strong flow rates, ultimate recoveries per well – and hence development economics.

Work is now well underway in analysing and integrating the extensive data gathered to optimize the imminent stimulation and flow testing program.

Laboratory work on various cuttings obtained from sandstone and coal intervals is due to be finalized and reported on shortly.

Extensive samples collected by Daydream-2 mudlogging unit are now under lab analysis

Multiple stakeholder engagement and securing the support of local communities for the areas in which we operate is a key priority for Eliixr. In that light, Elixir’s Board was pleased to meet with representatives of the Mandandanji people and execute an enduring Cultural Heritage Management Agreement (CHMA) This provides a framework under which future work in the broader Grandis Project can be managed effectively from all parties point of view.

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