Strategic Partnership Between QPM Energy And Carbon Logica

Queensland Pacific Metals Limited’s (“QPM”) wholly owned subsidiary, QPM Energy Pty Ltd (“QPME”), is delighted to announce the signing of a Strategic Partnership with Carbon Logica Pty Ltd (“CL") to jointly develop and invest in carbon abatement projects for mines in the NBB.

Highlights

• QPM Energy and Carbon Logica have agreed a Strategic Partnership, bringing together complementary skills and financing capabilities to accelerate development of carbon abatement projects in the Northern Bowen Basin ("NBB");
• The Partnership will greatly assist in delivering secure gas supply to the TECH Project and in confirming QPM’s independently verified CO2 NEGATIVE production of battery metals for the electric vehicle sector;
• The partners are already working on a pipeline of projects across the NBB with near term development potential. Carbon Logica’s strategy is to invest in the infrastructure associated with the capture, transport and beneficial use of waste mine gas;
• Both companies have a clear goal of providing carbon abatement solutions to enhance the sustainability of the steelmaking coal industry in the NBB;
• Cornerstone shareholders in Carbon Logica have a long track record of investing in carbon abatement projects and have identified the NBB as a new area of investment potential.

The Partnership brings together the critical skill sets and financing capabilities from both organisations needed to successfully develop projects that reduce carbon emissions from the resource industry and improve the security of gas supply to QPM’s TECH project in Townsville.

CL is a private company that was established to provide carbon abatement services to the resources industry and is jointly owned by the Xcoal Group (“Xcoal”) and Helmont Energy (“Helmont”).

• Xcoal has extensive experience suppling coal to steel producers and operating some of Australia’s gassiest coal mines within the Bowen Basin.

• Helmont is one of Australia’s leading biogas and carbon abatement firms specialising in reducing emissions from the agricultural and industrial manufacturing industry.

QPME has previously announced the development of the Carbon Abatement Project in the NBB (see ASX Announcement dated 25th Nov 2022) which will be Australia’s first multi-user, waste gas collection and processing facility. The Partnership is an extension of this project and is intended to accelerate its development through deployment of capital and securing agreements for waste coal mine gas collection and monetisation.

The high-quality steelmaking coal sourced from the NBB will be a critical element of the infrastructure development required to reach net-zero. However, these coals typically contain very high volumes of methane which is emitted during the mining process through:

• Direct methane release into the atmosphere from open pit coal mines; and
• Flaring and venting of gas pre-drained from underground mines ahead of coal extraction.

Through the development of regional infrastructure and projects which facilitate the capture and beneficial environmental and financial use of this waste mine gas, the Partnership will both reduce carbon emissions and facilitate industrial growth in Northern Queensland.

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