Elixir Energy

📋 About: Elixir Energy (ASX:EXR) is exploring for natural gas on the Mongolian-China border to replace burning of coal for energy in China.

🌏 Macro Theme: China’s 5 year plan to reduce carbon emissions requires a heavy reduction in burning coal for energy and aims to reduce reliance on foreign powers for energy supply.

EXR Corporate Milestones

✅ Portfolio Initiation & Energy Pick of the Year 2019
✅ $1.75M Capital Raise @2c per share
✅ MT Group non-Binding MOU for small scale LNG project
🌎 Increase in China's Gas Demand
✅ MOU with Ministry of Energy
✅ $10M Capital Raise @36c (Institutional Investors)
✅ $16.6M Capital Raise @36c (SPP)
🔲 Unexpected Announcement 1
🔲 Unexpected Announcement 2
🔲 Unexpected Announcement 3

Natural Gas Project

Project Milestones

✅ Environmental Impact Assessment Approved
✅ 200km of Seismic Operations (2019)
✅ 4 Wells Drilled in 2019
✅ 7 Wells Drilled in 2020
🔄 13 Wells Drilled in 2021
🔄 200km of Seismic Operations (2021)
✅ Prospective Resource Increased
🔲 Production testing well drilled at Nomgon
🔲 Production testing well drilled at Yangir
🔲 Update on Nomgon power station project
🔲 Other wells yet to be named based on seismic and analysis from other wells

2019 Drilling Results

🟨 Appraisal well 1 intersects coal (BO-CH-1)
🟨 Appraisal well 2 intersects coal (BO-CH-2)
🟥 Appraisal Core-hole 1 intersects coal, limited gas recovered (Ugtaal-1)

2020 Drilling Results

🟩 Appraisal Core-hole 2 returns gas (Nomgon-1)
🟩 Lab Results: Fully Saturated Gas Nomgon-1
🟩 Appraisal Core-hole 3 intersects coal (Nomgon-2)
🟩 Core testing from Nomgon-2 returns gas
🟨 Appraisal well 3 intersects coal (Nomgon 3S)
🟨 Appraisal well 4 intersects coal (Nomgon 4S)
🟩 Appraisal well 5 intersects coal (Nomgon 5S)
🟩 Exploration well 1 intersects coal (Hutul 1S)
🟩 Lab Results: Fully Saturated Gas Nomgon 2
🟩 Exploration well 2 intersects coal (Yangir 1S)

2021 Drilling Results

🟩 Appraisal Core-hole 4 returns "sales gas" (Yangir-2)
🟥 Exploration well 3 does not intersect coal (Temee-1S)
🟥 Exploration well 4 does not intersect coal (Cracker 1-S)
🟥 Exploration well 5 mechanical failure (Manlai-1S)
🟩 Exploration well 6 intersects Coal (Richcairn-1S)
🟨 Core-hole 5 Drilled & Intersects Coal (West Yangir-1)
🟩 Core-hole 6 Drilled & Intersects Coal (Nomgon Central-1)
🔲 Lab Results Core-hole 5
🔲 Lab Results Core-hole 6
🟨 Appraisal well 6 intersects coal (Kingston-1S)
🟨 Appraisal well 7 intersects coal (Kingston-2S)
🟨 Appraisal well 8 intersects coal (Kingston-3S)
🔄 Appraisal well 9 (Nomgon 6)
🔲 New Well 12
🔲 New Well 13

Green Hydrogen Project

✅ Green Hydrogen Project Announced
✅ SODAR Machine Mobilised
🔲 Update on initial SODAR results
🔲 New Milestones Added

Next Investors Investment Milestones

✅ Initial Investment: @3.9c
✅ Increase Investment: @2.6c
✅ Increase Investment: @13c
✅ Price increases 500% from initial entry
✅ Price increases 1000% from initial entry
🔲 Price increases 2000% from initial entry
✅ 12 Month Capital Gain Discount
✅ Free Carry
✅ Take Some Profit
🔲 Hold remaining Position for next 2+ years

”Expected Company Milestones” are based on the company's publicly available execution plan and some assumptions made by our team on potential announcements that should de-risk the investment. “Our investment milestones” show our current long-term investment plan. Early stage investments are risky and there is no guarantee that the expected events will occur. The lists are not in sequential order.

Key

🔲 Expected Milestone
✅ Achieved Milestone
🟩 Above Average Result
🟨 Average (Expected) Result
🟧 Below Average Result
🟥 Negative Result
🌎 Macro Event
⚔️ Results from Other Company / Project
🔄 In Progress
[UPA] Unexpected Positive Announcement
[NEW] New Milestone Added

Why we have invested...

Giant prospective resource next door to China

Massive 30,000km2 PSC with very large prospective resource. EXR has enlarged its prospective resource from 7.6 tcf of gas (risked “best” (mid) case) to a (best case) of 14.6 Tcf, a 92% increase from the 2018 estimate

Multiple market channels

Cash-flow generation can be early & modular. EXR has partnered with one of Mongolia’s largest fuel retailers to develop a Small Scale LMG (SSLNG) plant. The Asian Super grid and Power of Siberia II pipeline also present opportunities

Deep CSG expertise from Australia being transmitted to Mongolia

The EXR Team has a history of success in CBM in Richard Cottee (the “godfather” of QLD CSG) plus ex-Santos Neil Young and Stephen Kelemen. Delivered Mongolia’s first CSG discovery at Nomgon-1 well & Nomgon-2 exceeded expectations

Current exploration program

Upcoming fully funded exploration is aimed to open up new sub-basins in a number of locations across the gigantic PSC area. A contingent resource booking for Nomgon sub-basin targeted for year end.

100% ownership of PSC

100% ownership position maximises optionality to pursue value adding farmout(s).