Blue Energy : and Stanmore execute Hydrogen deal

ASX RELEASE

22 June 2021

Blue Energy and Stanmore Resources sign MOU for hydrogen offtake

Blue Energy Limited (ASX: "BLU") is pleased to announce that it has executed a non-binding Memorandum of Understanding (MOU) with Stanmore Resources Limited ((Stanmore) previously known as Stanmore Coal - ASX: "SMR") to supply hydrogen from its future pilot production activities in its ATP 814 tenement in the Bowen Basin. This latest agreement comes after Blue Energy and Stanmore previously announced a non-binding MOU for the commercialisation of mine gas from Stanmore's proposed underground operation adjacent to ATP814.

Blue is investigating the potential for conversion of pre-development gas production, from pilot gas well operations, to hydrogen for supply to Stanmore's Isaac Plains Complex equipment fleet. The gas used by Blue for conversion to hydrogen will be pilot gas which would otherwise be flared, and this trial project will reduce greenhouse gas emissions from Blues activities and also reduce diesel fuel usage by Stanmore which in turn reduces the CO2 produced by the combustion cycle of their fleet of vehicles.

Blue is currently investigating off the shelf modular hydrogen generation equipment that is portable and able to be installed either centrally or at the well head, with the hydrogen generated transported in purpose-built cylinders to Stanmore's Isaac Plains Complex site for use in their vehicle fleet.

Blue Energy's Managing Director Mr John Phillips commented that "being able to avoid flaring of pilot gas production by converting it to hydrogen is a step forward in reducing emissions prior to gas developments, and in this case has the added bonus of also lowering emissions from neighboring mining operations".

Blue is in the process of establishing technology partners for this hydrogen trial, and now with a foundation hydrogen offtaker secured is confident the use of Blue Hydrogen from our pre- development activities is a positive step toward lowering the greenhouse gas emission footprint of the Bowen Basin Coal mining precinct.

By Authority of the Board per:

John Phillips

Managing Director

Blue Energy Limited

e [e-mail]

ABN 14 054 800 378

w www.blueenergy.com.au

About Blue Energy Limited

Blue Energy is a Brisbane Based Australian exploration company focused on the discovery and development of gas resources in the North Bowen, Galilee, Beetaloo/ Greater McArthur Basins in the Northern Territory. Blue has independently certified gas reserves and resources of 71 PJ of 2P reserves; 298 PJ of 3P reserves and 4,129 PJ of Contingent Resources as assessed by Netherland Sewell and Associates of Dallas Texas.

About Stanmore Resources Limited

Stanmore Resources Limited owns and operates the Isaac Plains Complex in Queensland's prime Bowen Basin region, which includes the Isaac Plains Mine and processing facilities, the adjoining Isaac Plains East (operational), the Isaac Downs project (under development) and the Isaac Plains Underground Project. The Company is focused on the creation of shareholder value via the efficient operation of the Isaac Plains Complex and the identification of further development opportunities within the region. In addition, Stanmore Resources also holds a number of additional high-quality prospective coal tenements located in Queensland's Bowen and Surat basins.