Significant Increase in Prospective Resources Updated

Significant Increase in Prospective Resources Updated

Elixir Energy Limited (“Elixir” or the “Company”) announces that the ASX release lodged earlier today, contains a date error and is now being re-released. The year shown the second paragraph on page 2 should be 2024 not 2025 and is set out below.

This prospective coal resource, combined with the permeable and tight sandstones recently logged in Daydream-2, will be the key targets of the upcoming stimulation and testing program, which will commence in mid-April 2024.

Elixir Energy Limited (Elixir or the Company) is pleased to provide an update on further laboratory results recently received in connection with its Daydream-2 appraisal well in its 100% owned Grandis Gas Project (ATP 2044), located in the Taroom Trough of the Bowen Basin, Queensland.

HIGHLIGHTS

Desorption analysis conducted on coal cuttings from Daydream-2 now completedVery high gas contents measured – prior expectations greatly exceededResultant significant increase in the prospective resources in ATP 2044 to 3.6 Tcf (2U)Imminent program aims to start converting these prospective to contingent resourcesExpected low CO2 confirmed

During the drilling of the primary unconventional targets at Daydream-2, Elixir acquired coal desorption samples from drill cuttings. The cuttings were placed in traditional coal bed methane (CBM) desorption tubes and analysed for gas content. The work was undertaken by one of the global leaders in coal analysis, ALS.

This innovative work has identified a new and significant gas resource for the Company. This is gas adsorbed to the coals – in addition to the prospective resources already recognised by Elixir, which previously were solely in the coal fracture system.

The most representative samples averaged 23 cubic metres/tonne (Raw as received) for Q1 + Q2 + Q3, which translates to 34 cubic metres/tonne (Dry Ash Free).

This adsorbed gas component of the coal is now considered by Elixir to have significantly enhanced the prospectivity of Grandis, because of:

1. The exceptional gas contents still adsorbed to the coals;

2. The entire Permian section appears to be gas saturated without significant water; and

3. The natural permeability of the adjacent sandstones means there is a direct conduit from these gassy coals to the sandstone reservoirs.

The prospective resources of gas in the Permian coals in ATP 2044 has now been re-assessed to include both an adsorbed and fractured component, and is estimated as follows:

This prospective coal resource, combined with the permeable and tight sandstones recently logged in Daydream-2, will be the key targets of the upcoming stimulation and testing program, which will commence in mid-April 2024.

The current timing for the wellbore clean out of Daydream-2 will be within the next 2 weeks and Diagnostic Fracture Integrity Tests (DFITs) will commence in March. The stimulation and flow testing stages will follow and are planned to be completed in the second quarter.

Successfully flowing gas from the coals will lead to the commencement of the conversion of these very material prospective resources to contingent resources. In addition, the Company aims to re- assess the previously independently certified contingent resources in the sandstones after that flow test stage – with a view to also substantially increasing them.

Further work is ongoing on the samples in areas such as gas composition and saturation. However the preliminary average chromatographic gas breakdown confirms the expected low carbon dioxide content. This has been measured as around 1% – a level which requires no processing out before sales into pipelines, etc).

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