Armour Energy (ASX:AJQ)

ASX Announcement

11 March 2021

Reduction in debt under Tribeca facility

HIGHLIGHTS:

  • • Armour has received notification from the Queensland Department of Environment and Science confirming a reduction in estimated rehabilitation costs for Surat Basin projects by $1.1m allowing for a reduction in the financial assurances that Armour needs to provide.

  • • The $1.1m reduction in financial assurances will be applied to further reduce outstanding debt under the financing facility with Tribeca.

The Directors of Armour Energy Limited (ASX: AJQ; "Armour", or "the Company") are pleased to announce there will be a further reduction of debt by $1.1m under the financing arrangements with Tribeca. The reduction follows confirmation from the Queensland Department of Environment and Science of a reduction to financial assurances required under Armour's environmental authorities.

Under the environmental authorities for the Surat Basin, Armour made an application to the Queensland Department of Environment and Science (DES) for an Estimated Rehabilitation Cost (ERC) decision. The ERC resulted in a decrease of $1.1m in the amount for the environmental authority required for the Surat Basin project.

Armour's environmental authorities are supported by cash-backed bank guarantees, with a financing arrangement in place with Tribeca. As a result of this notice from DES, Armour will be able to reduce the value of bank guarantees provided to the Queensland Government and in turn, reduce the amount under the financing facility with Tribeca.

Once applied, this decrease to the Tribeca facility together with the unscheduled accelerated amortisation payment on the Senior Secured Amortising Notes as announced on 4 February 2021, will result in total debt of $43 million. Since 30 June 2020, the Company has reduced its outstanding long-term debt by 30% in total from $62 million to $43 million consisting of $37.6 million of Amortising Notes and $5.6 million Tribeca facility.

This Announcement is Authorised by the Board of Directors Karl Schlobohm

Company Secretary

For further information contact:

Nicholas Mather - Executive Chairman 07-3303 0680

Brad Lingo - CEO 07-3303 0680

Karl Schlobohm - Company Secretary 07-3303 0661

Sarah Schuiringa - Marketing & Communications 07 - 3303 0619

ASX Code: AJQ

Executives

Bradley Lingo - Chief Executive Officer Karl Schlobohm - Company Secretary Michael Laurent - Chief Operating Officer Toni Hawkins - Chief Financial Officer

Directors

Nicholas Mather - Executive Chairman Stephen Bizzell - Non-Executive Director Roland Sleeman - Non-Executive Director Eytan Uliel - Non-Executive Director

Contact Details

Level 27, 111 Eagle Street Brisbane Qld 4000

Tel: +61 7 3303 0620

Website: ArmourEnergy.com.au Twitter: @armour_energy

Linkedin: linkedin.com/company/armour-energy

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Disclaimer

Armour Energy Limited published this content on 10 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 March 2021 00:15:01 UTC.