Kinetiko Energy : Presentation - South Africa Onshore Gas Energy Solution

SOUTH AFRICA'S ONSHORE GAS ENERGY SOLUTION

ASX:KKO June 2024

Executive Summary

Kinetiko Energy is a gas explorer focused on advanced shallow conventional onshore gas in South Africa. The company has discovered a world class resource, adjacent to widespread energy infrastructure and a domestic economy with an insatiable demand for gas.

LOCAL ENERGY CRISIS

1

Significant need for alternative energy supply in the region with rapidly declining coal and offshore gas energy supply driving major social and economic impacts

NEAR TERM SOLUTION

2

Onshore conventional gas supply provides a near- term solution to decreasing energy supply with initial proof of concept already completed

FULLY FUNDED EXPLORATION

3

PROJECT LOCATION

4

Kinetiko remains fully funded for CY24 five-well flow testing program

SIGNIFICANT RESOURCE

Substantial resource with 6.0 TCF (2C) Resource, anticipated to grow substantially across upcoming work program

5

LOW COST & LOW RISK DEVELOPMENT

Shallow conventional gas allows low-cost development, with local infrastructure providing fast and simple energy conversion and supply process

2

South Africa's Energy Crisis

Daily blackouts of up to 12	Worst load shedding in
hours causing significant	history experienced in CY23
social and economic	and CY24
damage
Aging coal energy supply	The need for immediate,
historically providing over	cleaner, low cost energy is
85% of power generation	paramount to the future

SOUTH AFRICA LOAD SHEDDING1

% days per year with power cuts due to electricity supply shortages

100%

yearper 50% days%

-

	prosperity of South Africa.
Only gas available from	Core to recent election was
Mozambique is in severe	a compartment to
decline, with domestic feed	developing gas power
shut-outs from 2026	projects for increased
	energy generation
Renewable hydro, solar and	Gas to power represents
wind projects have	the cleanest near-term
extensive development and	solution to the largest

500

mmcfd	250

2015 2016 2017 2018 2019 2020 2021 2022 2023

PANDE - TEMANE PRODUCTION PROFILE (PPA)2

construction timelines	problem facing the South
			African Government
1Loadshedding tracker, Eskom se Push & Export Finance Australia 2Annual Report of the IGUA-SA 2020

0

2004 2008 2012 2016 2020 2024 2028 2032 2036 2040

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Asset Overview

A significant resource, with near-term material resource growth, in close proximity to existing energy infrastructure and major cities including Johannesburg

100% SUCCESS

All 44 wells have successfully encountered gas with large, shallow pay zones, suggesting uniform geology throughout entire tenement package

RESOURCE & RESERVE

6.0TCF (2C) ≅ 1 Billion BOE and 6.4 BCF (2P) assessed over Amersfoort pilot

LAND HOLDING

2P Reserve derived from 0.2% of granted tenements, with 6,000 km2 in acreage, allowing multiple gas field development opportunities

RESOURCE GROWTH

Anticipated to increase following flow testing program and grant of ER383 (2,383 km2) increasing project life and value. Further drilling is expected to upgrade 5.8 TCF 2U Prospective Resource into 2C Resource

DEVELOPMENT PARTNERSHIPS

Agreements in place with private and public organisations to develop the asset through pilot and full scale commercial production

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Development

Characteristics

Gas to power represents a nearer-term solution to decarbonisation of South African energy supply away from coal-based infrastructure, with the first demonstration of Kinetiko's reservoir gas energy conversion successfully completed in Q2 CY24

NO FRACKING REQUIREMENT

Shallow conventional gas asset allowing for cost effective extraction without the requirement for fracking

CONVENTIONAL SETTING

Gas sits in sandstone and above the coals, sealed and compartmentalised into reservoirs by dolerite sill / dykes

HIGH GAS QUALITY

96%-98% measured methane, with the remainder nitrogen and extremely low CO2 measured

GAS TO POWER

Gas to power already demonstrated in May 2024 confirming the quality of gas, requiring minimal refining and the ability to generate revenue quickly upon grant of Production Right

DE-CARBONISATION

Coal based power being rapidly decreased in SA with Government highly supportive of gas as an alternate means to energy production

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Development Strategy

Exploration	Production	Proof of Concept
44 Exploration wells	Drill five production	Drilling additional
now drilled with 100%	Wells to Confirm Gas	production wells
success rate	Field Production	adding to existing 5
	Characteristics	well Amersfoort field
		cluster followed by
		installation of micro-
		LNG train
		Initial gas to power
		demonstration already
		successfully completed

Corporate

Grant of ER383

allowing significant increase in resource

Grant of production right to allow revenue from gas production

Commercial Scale

Deliver SA's Largest Onshore LNG Project. Term Sheet with SA Government (IDC) signed for minimum 50MWe JV project

STAGE 1

STAGE 2

STAGE 3

STAGE 4

STAGE 5

• Kinetiko holds a clear, sequenced execution strategy to develop the basin into a position of being fully commercialised for energy delivery into the South African Energy Market

• The upcoming appraisal production wells will deliver critical flow rate and depletion curve data across five wells
• This data will then support Resource & Reserve increase in CY25

6

Near Term Strategy

NEAR TERM EXECUTION PATHWAY

Coring Wells ER270

Productions Testing Wells (Five wells)

Extended Flow Testing Results (Five wells)

IDC JV Production Wells (Five wells)

IDC JV Flow Results

Install MS-LNG systems

Production Testing Wells (ER270)

Production Testing Wells (ER272)

ER383 Grant - Resources Upgrade

Production Right Grant ER271

CY24	CY25

J F M A M J J A S O N D J F M A M J J A S O N D

>

COMMENT

Confirm gassy pay zones and uniformity of geology

Assess viability of multiple development sites

Mitigate technical risk and provide data for further Reserve calculations

Initial pilot plant production cluster as part of initial IDC JV

Provide pilot plant commercial modelling characteristics

Micro LNG Pilot plant installation & commissioning

Target multiple development sites and increase reserves potential in ER270

Target multiple development sites and increase reserves potential in ER272

60% increase in landholding, vastly increasing resource/reserve potential

Secure long-term tenure and revenue generation capacity

7

Production Test Program

All five wells and subsequent flow testing will provide significant data to allow commercial development and a material level of newsflow

1

• 2
  4

5

Development focused exploration program of five production / appraisal wells in southern fields (4 wells ER271, 1 well ER270)

First well located near Majuba power station expected to take 45 days to drill, subsequent four wells 30 days to drill

Program seeks to identify high flow rate gas zones and sites for development of production clusters and cluster sizes

Current Reserve assumptions use 50,000 scf/day flow rates, with a minimum of 90-day flow rates tested for each well

Each well and subsequent flow test will deliver critical data for geological modelling and drive a material newsflow pipeline for H2 CY24

Adjacent core wells identified gassy pay-zones in excess of 130m in each hole

High degree of confidence in success given that core wells observations and logging suggest potential greater than 50,000 scf/day flow rates

8

Medium Term Development

Proof of Concept

Drilling of additional production holes at existing Amersfoort field cluster

followed by installation of micro-LNG train

	Commercial Scale
	Project Financing	Fiscal Terms
		KKO	IDC
$48m	$138m	70%	30%
$90m	$48m	$90m
			$39m
			$51m
Debt Cost	External Debt	Equity Cost	IDC
Equity Cost	Total Project Cost	KKO

Joint Venture with Industrial Development Corporation of South Africa (IDC) of

50MWe increasing to 500MWe and an option to increase to 1,500MWe

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Board & Management

Adam Sierakowski Executive Chairman

Adam is a seasoned lawyer and founding director of Palisade Corporate and Trident Capital. With over 21 years of experience in the legal field, he has also held director positions in ASX listed companies, further demonstrating his deep understanding of the industry.

Don Ncube Non-Executive Director

Donald has a master's degree in Manpower Studies from the University of Manchester. Mr Ncube is recognised and respected as one of the reputable pioneers of Black Economic Empowerment. He is the founder and former Chairman and Chief Executive Officer of Real Africa Holdings (Pty) Ltd, a listed company on the JSE.

Rob Bulder Non-Executive Director

Rob qualified as a Chartered Accountant in 1987 and has over 30 years of commercial experience. Mr Bulder has held numerous senior management and executive board positions in the manufacturing, financial services, IT, airline and gas industries, overseeing multi-billion Rand budgets.

Robert Scharnell Non-Executive Director

Robert is an experienced executive with over 30 years of demonstrated achievement at Chevron Corporation in establishing and implementing business strategy. He has conducted business in over 20 countries and under complex situations, for large values including negotiating multi-lingual agreements, sales/purchase transactions, and settling claims and disputes on the scale of over $1 billion in value.

Nick de Blocq CEO In-Country

Nick has over 35 years of experience as an Engineer and Manager in the Upstream Oil and Gas industry in various senior roles, including Multi-Country Operations & Functions Management and Regional Business Development with Schlumberger, Africa VP with an American corporate and COO with a Regional Solutions supplier in West Africa.

Hendrik Burger Jr Operations Manager

Hendrik Burger, or "Junior", as he is known to our team, has been with Kinetiko from the start of test well operations in 2012. He has maintained continuity for the project with the local communities and since 2012 has resided in Amersfoort, the hub of the project.

Richard Wolanski Corporate Finance

Richard Wolanski, B.Com, ACA, is a Chartered Accountant with qualifications that include a Bachelor of Commerce from the University of Western Australia. Richard has over 30 years professional experience in the finance and mining industries at an international level.

Paul Doropoulos Chief Financial Officer

Paul Doropoulos has approximately 25 years of combined experience in an Executive Consultant capacity to ASX listed companies in the energy, minerals, mining services and media sectors. Time during this period was spent as both an Executive and Non Executive Director of ASX companies.

Simon Whybrow Company Secretary

Simon is a highly driven and dedicated professional with a wealth of experience as a CFO, Company Secretary, and Commercial Manager.

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