Genex Power Limited provided the following construction update for the 250MW Kidston Pumped Storage Hydro Project (K2-Hydro or the Project). During December 2021 and January 2022 (the Period) extensive works relating to the Main Access Tunnel (MAT) for the Project have been undertaken. The commencement of the MAT is ahead of the contract schedule and progressing well. The MAT makes up a 1.5km long horseshoe profile having dimensions of approximately 6m wide and 6m high. It is graded at 14% (1:7) in a spiral to access the powerhouse cavern which is approximately 250m below ground level. The powerhouse cavern will house the two 125MW Andritz Hydro reversible pump-turbines. The MAT is constructed using conventional full-face drill and blast excavation methodology, with a single heading taking approximately 6 months to reach the first adit which will provide first access to
the powerhouse cavern. Once the first adit is reached, multiple tunnel headings will progress to expedite the powerhouse cavern excavation. With preparation works for the MAT completed in early 2022 including portal face stabilization and preparation works, the EPC Contractor joint venture for the Project have formally commenced the underground excavation works with the first major blast for the MAT. Following this milestone, tunneling operations are now progressing on a 24/7 basis with two shifts per day, which is scheduled to progress the tunneling works at an average rate of 8m per day over the next 6 months. In addition to commencement of the underground works, site activity continues to ramp-up, with works commenced on the following near term construction milestones: Commencement of procurement and manufacture of key turbine components; Completion of the blast magazine storage area and access road; Near completion of the 22kV distribution line with transformer installed with final connection works still ongoing; Ongoing aggregate crushing plant and concrete batch plant operations; and Continuation of services reticulation around the site for construction purposes.