Moranbah Project Aquisition Update and Preliminary Guidance

Queensland Pacific Metals Limited (ASX:QPM) is pleased to announce QPME production and financial guidance for the Moranbah Project.

Highlights

• QPM Energy (“QPME”) has been working closely with the Moranbah Project vendors to finalise ownership transition with completion currently estimated to occur around the end of July.
• Upon completion of the acquisition, QPME will receive net cash of $30m.
• QPME has developed gas supply forecasts and operating budgets based on an extensive review of historical operations and field development plans and is pleased to provide indicative production and financial guidance for the Moranbah Project through to the end of 2024.
• QPME is forecasting that the Moranbah Project will generate positive EBITDA through 2024 based on production, operating and electricity price assumptions outlined in the Appendix.

Summary guidance is provided in the table below. As the date of transfer of ownership and operating control to QPME has not been finalised, guidance has not been provided for the September 23 quarter. Further information and assumptions can be found in the Appendix

Table: Moranbah Project Guidance

Transaction Update

QPME has been working closely with relevant stakeholders to satisfy the necessary condition precedents to reach financial close on the Moranbah Project acquisition. Importantly, QPME has received official correspondance from the Queensland Government regarding its intention to approve the transfer of the Moranbah Project Petroleum Licenses to QPME. At this stage, financial close is targeted around the end of July.

Furthermore, QPME is pleased to advise that Ben Visser will join the company as General Manager - Development and Operations. Ben has extensive operating and asset management experience across the oil and gas, mining and petrochemical industries. In particular, Ben has been directly responsible for developing and managing large coal seam gas and conventional production operations in Queensland and the Northern Territory

Upstream Production Solutions (“UPS”), an experienced gas field operator, has been contracted to operate the Moranbah Project and is well advanced on achieving operational readiness including the transfer of a significant portion of the experienced Moranbah Project team.

At financial close, QPME will own the Moranbah Project assets, receive all project revenues and have financial responsibility for operating and capital costs. Arrow Energy will continue to operate the project for a short period of time to facilitate a smooth tansfer of operatorship to UPS.

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