Record Gas Production Milestone Achieved

TMK Energy Limited (ASX: TMK) (“TMK” or the “Company”) is pleased to announce it has achieved another record gas production milestone from its 100% owned Gurvantes XXXV Coal Seam Gas (CSG) Project in Mongolia.

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HIGHLIGHTS:

• Record gas production of over 500m3 per day for successive days, another major milestone achieved for the 100% owned Gurvantes XXXV Project
• Gas production to date in November averaging ~480m3 per day, a 21% increase over October’s record average of ~395m3 per day
• Recent workshop in Beijing with strategic alliance partner J-Energy validated the technical merits of the Project and confirmed the economic potential of the enormous, discovered gas resource

Daily gas production has exceeded 500m3 per day in recent days, a new daily record and a milestone set by the Company to be achieved in 2025. Daily gas production to date in November has averaged

~480m3 per day, a 21% increase over October’s record average daily gas production rate.

The continued strong performance of the wells is a positive sign for the Pilot Well Project as it moves closer towards the desorption pressure required for gas rates to materially increase. The pathway to desorption pressure is becoming clearer based on new reservoir modelling work being undertaken and a detailed subsurface data review that has recently undertaken by the Company.

The results of this work were reviewed at a technical and commercial workshop held in Beijing last week, with the Company’s management team and J-Energy, TMK’s strategic alliance partner, in attendance. The workshop further validated the technical merits of the Project and confirmed the economic potential of what is an enormous, discovered gas resource on the doorstep of China.

The outcomes from the workshop will be used to develop the 2026 Work Program and Budget as well as the overall strategic plan to commercialise the gas once commercial flow rates are established.

Mr Dougal Ferguson, TMK Energy’s Chief Executive Officer commented:

“Achieving the first of what we expect will be one of many production milestones, is a great effort by the technical and operations team. The revised reservoir management plan is clearly having a positive impact with gas production rates increasing month on month, but more importantly, water production continuing at rates of over 500 barrels per day, which is what is required to continue to depressurise the reservoir toward desorption.

Last week’s workshop in Beijing confirmed that we have an enormously valuable Project and all participants in the workshop were highly confident, based on all the data at hand, that we will commence producing gas at commercial quantities in 2026. The detailed reservoir modelling that has begun will allow us to advance our pre-feasibility study which will include production well spacing and design, predict gas drainage patterns and forecast overall well productivity, allowing us to optimise the overall development plan.

The belief of the team has been building significantly in recent months with the recent positive developments, and we are looking forward to another strong operations update in November as the Project continues to move forward at pace.”

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