Gas – Pitse Pilot Project

The initial focus of the Serowe CBM Project is the development of the Pitse commercial well pilot program –Pitse Pilot Project. This phase involves delivering gas flow rates from a central dewatered well.

Key milestones for this phase include:

• Pitse Commercial Gas Flowrate
  Targeting low (40mscfd), medium (80mscfd), and high (100mscfd) flow rates by late 2025, with an estimated expenditure of AUD 1.5m.
• Production Wells
  Developing Production wells to test new areas within the prospecting licences by late 2025, with an expenditure of AUD $150k per well.
• Bankable Feasibility Study
  Currently ongoing with an estimated cost of AUD 1.0m and completion by late 2025.
• Conclusion of Conditional Gas Sales Agreements (GSAs)
  GSAs are currently under negotiation, with Botala securing first commercial offtake customer SCAW South Africa
• Mining Licence Secured
  Regulatory approval to transition to commercial production received in March 2025

The successful completion of these activities will allow recertification of the resources to reserves, setting the stage for the transition to the next phase of production development.

The current appraisal phase includes the drilling of 4 new appraisal wells with geographical information being used to accurately determine their locations.

These 4 new wells have been drilled and tested with a 350-500m spacing in a square pattern around Serowe-3.1 well, plus further testing of Serowe-3.1 well.