Joint Development Funding Advanced to Accelerate Gas Field Development

Kinetiko Energy Ltd (ASX: KKO) (Kinetiko or the Company) is pleased to announce it has been advanced the first tranche of funding from FFS Refiners (Pty) Ltd (FFS), pursuant to the executed Joint Development Agreement (JDA) which provides the framework under which Kinetiko, Afro Energy (Pty) Ltd (wholly owned subsidiary of KKO) (Afro) and FFS (Parties) will commence the initial phase (Phase 1a) being the first of four potential phases (together known as Project Alpha).

HIGHLIGHTS

• FFS Refiners (Pty) Ltd has advanced R6,200,000 (AUD$546,0401) to Kinetiko’s wholly owned subsidiary Afro Energy (Pty) Ltd being the first tranche of commitments to codevelop the first phase of a pilot gas plant for the production of LNG at Brakfontein.
• The funding advanced pursuant to an executed Joint Development Agreement (refer ASX Announcement dated 13 October 2025) to accelerate Phase 1a of Project Alpha, including, but not limited to:
  • co-funded drilling of additional production wells and developing completion strategies for existing production wells at Brakfontein
  • Gas testing and appointment of a competent person for certification of gas reserves
  • Compilation of an LNG business case proposal for further gas field development;
  • Application for a production right; and
• The advance represents the first tranche of joint funding commitments of FFS totalling R28,656,000 (AUD$2,525,0692) for Phase 1a Project Alpha.

• (Phase 1a – Gas Field Development Activities)
  The JDA establishes development initiatives in commencing Phase 1a of Project Alpha, including, but not limited to:
  • co-funded drilling of five additional production wells and upgrading existing production wells at Brakfontein
  • Gas testing and appointment of a competent person for certification of gas reserves
  • compilation of an LNG business case proposal for further gas field development;
  • co-funded application for a production right; and
  • creation of a JDA Steering Committee for supervision and direction of the proposed development activities
• (Phase 1b – LNG Proof of Concept 5,000tpa) The JDA Steering Committee preparing an LNG business case agreeable to the Parties, the execution of special purpose vehicle agreements and incorporation of Project Alpha SPV entity with KKO and FFS each holding 50% of the issued share capital. The SPV will be responsible for the ordering and commissioning an LNG liquefaction plant cryobox of 5,000tpa capacity and design and construction of gas, water and power reticulation systems, as well as the marketing and distribution of LNG to customers. The outcomes of the Phase 1b will be incorporated in the full-scale LNG production business case required by the JV Parties to scale up LNG production.
• (Phase 2 – Full LNG Production) Subject to the objectives of the Phase 1b production being met, the Parties intend to scale up the potential production of LNG over an expanded production right area, envisioned to be significantly larger than the Phase 1b development, scaling liquefaction capacity fivefold to 25,000tpa capacity.
• (Phase 3 – LNG Production Expansion) During the final phase, the parties intend to collaborate on the further expansion of LNG production over additional tenement areas held by Kinetiko beyond the Brakfontein area envisioned to be significantly larger than the Phase 2 development up to 125,000tpa capacity.

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