Genex Power Limited provided the following construction update in relation to the 250MW Kidston Pumped Storage Hydro Project (K2-Hydro or the Project). Construction activities, led by Engineering Procurement and Construction (EPC) joint venture of McConnell Dowell and John Holland remain on track and on budget, and continue to progress to schedule. The EPC scope of work is under a fixed price lumpsum contract and includes dam construction, underground and waterway civil works and the full powerhouse fit-out (including supply and installation of all electromechanical equipment).

Key activities on the Project and works undertaken at site between the months of December 2021 and February 2022 include: Completion of the Main Access Tunnel (MAT) portal face stabilisation works; Advancement of the MAT (which will ultimately provide access to the main powerhouse cavern) with over 10% of the length complete at end February 2022; Completion of the 22kV distribution line with the line energised for 4MVA. Site electrical reticulation is now operating on permanent power with temporary generation systems removed; Completion of trial works for the Wises Dam embankment. Wises Dam construction to commence in April 2022, following the end of the wet season; Manufacturing commenced for key items of Andritz's turbine equipment; Successful completion of the full-scale prototype testing for tower one of the suite of 275kV transmission towers by Powerlink Queensland (Powerlink); and Completion of the road upgrade to the Guybel Munyan (Mt Fox) substation as part of Powerlink's 257kV transmission line.

Site activity continues to ramp-up, with the following works scheduled to commence in April 2022: Wises Dam embankment (6km in length, up to 25m high and approximately 2 million cubic metres of fill); and Geotechnical works for the 275kV transmission line by Powerlink. Preparation works for construction of the 250m deep ventilation and cable shafts. The Genex Health, Safety, Environment and Quality Strategy (HSEQ) promotes the vision of creating a healthy, safe, environmentally sound, and quality work environment resulting in sustainable outcomes.

Key implementation activities at K2-Hydro currently focus on: Safety, health, environment, and quality by design; Health, safety, environment, and quality capabilities and competencies; Leadership and culture; and Effective legislative compliance. The adoption and implementation of the HSEQ strategy at K2-Hydro has resulted in a range of sustainable outcomes and world class performance indicators some of which are outlined below: Lost Time Injury Frequency Rate: <1 (Industry benchmark is 6.3). Incident Severity Rating: <1 (Industry benchmark is 2.6).

Motor Vehicle Incident Rate: 0. Motor Vehicle Incident Frequency Rate: 0. Total Recordable Incident Frequency Rate: 0. Regulatory Non-Compliance: 0. Overall, the construction program continues to track to schedule for first energisation in early CY2024 and completion in Fourth Quarter CY2024.