Frontier Energy Limited announced preliminary results from the Green Hydrogen Study indicate green hydrogen production could be achieved significantly earlier than originally anticipated at the Bristol Springs Solar Project (BSS Project). This opportunity is only possible due to the BSS Project's unique location near Waroona, Western Australia. The location on free-hold land, proximal to existing grid (SWIS), gas and water infrastructure, reduces overall costs when compared to projects in more remote areas.

Furthermore, the proximity to an existing and emerging green hydrogen domestic market provides a pathway to hydrogen sales. Bristol Springs Solar Project - Stage 1: The BSS Project is a large, utility-scale solar energy project located in the southwest of Western Australia. Development is well advanced and is designed to produce 114MWdc of renewable electricity in Stage One with land acquisition opportunities to expand beyond this.

The BSS Project will utilise well-established solar panel and tracking technology to deliver clean energy. It is strategically located to connect to the backbone of the Southwest Interconnected System (SWIS), and is close to road, water, and port infrastructure. Development approval has been granted by the Regional Joint Development Assessment Panel, and an electricity transfer access contract (ETAC) is in progress with Western Power and is expected to be completed by the end of 2022.

A summary of the key metrics of the BSS Project is provided below: These assumptions were provided by EPC Technologies. Installed solar panels: 114MWp. Capacity Factor: 25%.

Expected energy production: 247GWac. Generation technology: Single axis tracking, bifacial solar panels. Operating life: 30 years.

Renewable Electricity Sales: The BSS Project is located approximately 3.5km from the Landwehr Terminal, a major connection point into the SWIS, the electricity grid covering the southwest of Western Australia. The SWIS provides power to over 2.3 million customers over an area 1,000km north to south and more than 600km east to west. The Landwehr terminal is on a major 330kV power line which provides the BSS Project with connection to many large industrial customers in the Southwest from Bunbury and Collie in the south, to Kwinana to the north.

Almost all of the companies in this region have committed to decarbonisation of their operations providing an ideal pool of potential Once on the grid the power can either be sold via: Bilateral agreements with industrial users connected to the grid under Power Purchase Agreements (PPA), or Traditional sales into the balancing market onto the grid through the Market Operator. Other revenue mechanisms include: Reserve Capacity Credits; and Large-Scale Generation Certificates (i.e. "Carbon Offset Credits"); and Essential System Services. Expressions of interest for PPAs have been sent to a number of major companies in the region with a view to developing term sheets for power offtake agreements.

The Company is also investigating the possibility of green hydrogen offtake agreements. As the BSS Project progresses, these term sheets could provide the basis of binding offtake agreements which will form the foundation of funding mechanisms and a final investment decision. Furthermore, the Australian government has allocated A$1.3 billion in its 2022-23 budget1 for energy security funding, including funding specifically for the development of hydrogen projects.

Green hydrogen as an alternative to solar energy sales As an alternative to selling solar power into the SWIS, the Company is assessing green hydrogen production using clean energy produced from the Stage One 114MWp solar farm. Given the Company's unique location, surrounded by existing world class infrastructure, the initial capital required for this development is lower. This includes from the following: Multiple fresh water sources exist in the region avoiding the need for a desalination facility.

The requirement for desalination materially increases capital and operating costs and involves significantly more complex approvals extending timelines to production. Connection to the SWIS - access to this power grid, only 3.5km from the Stage One site, allows the Company to sell power in excess of requirements for green hydrogen into the SWIS. Importantly, it also provides the opportunity for the Company to purchase renewable energy from other providers (eg.

wind energy) during low or no-sun periods when the solar plant is not generating power. Using other sources of clean energy and power arbitrage or swaps, the SWIS may be able to provide a virtual battery for the project.