Genex Power : Quarterly Activities/Appendix 4C Cash Flow Report

Quarterly Activities Report - Quarter Ending 30 June 2022

GENEX POWER LIMITED (ASX:GNX)

Level 6, 28 O'Connell Street, Sydney NSW 2000

GPO Box 4626, Sydney NSW 2001

ABN: 18 152 098 854

25th July 2022

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Company Announcements Platform

useG nex Power Limited (ASX: GNX) (Genex or the Company) is pleased to provide the following update on

the Company's activities and performance for the quarter ending 30 June 2022 (Q4 FY22 or the Period),

a Period during which the Company continued construction of the 250MW/2000MWh Kidston Pumped Hydro Project (K2-Hydro) and the 50MW/100MWh Bouldercombe Battery Project (BBP).

HIGHLIGHTS

During the Period, the Kidston Solar Project (KS1) generated 26,334MWh of renewable energy and personal• the Jemalong Solar Project (JSP) generated 17,044MWh of renewable energy;

• Strong electricity and large-scale generation certificate (LGC) prices reflected higher than

anticipated revenue with the Company reporting $8.6M in revenue for the Period1;

• Full year FY2022 revenue from the solar farms of $26.1M1 and net operating cash flow of $4.0M represents record revenues for Genex and the first full year of positive operating cash flow in the

Company's history;

• Construction at K2-Hydro continued during the Period with key work focused on continued underground tunnelling and commencement of the dam construction works, with the project

remaining on time and within budget at quarter-end;

• Construction activities at BBP continued during the Period with detailed design and procurement

activities well progressed;

•	Genex, alongside its joint venture partner Electric Power Development Co. Ltd (J-POWER),
	continues to advance the development of the 200MW Kidston Stage 3 Wind Project (K3-Wind),
	executing a Joint Development Agreement during the Period;
•	Genex executed a new Subordinated Loan Agreement with Infradebt Pty Ltd (Infradebt) to
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undertake a refinancing of the existing subordinated debt facility for KS1 and JSP; and

• Genex finished the Period in a strong cash position, with cash at bank of $62.9M as of 30 June 2022. Commenting on the Q4 FY2022 performance, Genex CEO, James Harding said:

"The value of our existing portfolio of renewable energy assets was highlighted during the period with both the Kidston Stage 1 Solar Farm and the Jemalong Solar Farm able to take advantage of the recent uplift in wholesale electricity prices, to secure record revenue and cash flow for the

1 Revenue figures are on an unaudited basis

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	business. The refinancing of the existing subordinated loan facility will enable Genex to benefit
only	from these conditions by releasing excess cash flows to support the continued growth of our
portfolio.
Work also continued at the Kidston Pumped Storage Hydro project, with the underground works
	continuing for the Main Access Tunnel and commencement of bulk earthworks for the Wises Dam.
	The team remains focussed on the successful delivery of the project and importantly, it remains
	on time and within budget at quarter-end.
use	At Bouldercombe, construction activities and detailed design continued during the period. Site
activities are scheduled to commence this quarter and the project remains on track for first
generation by mid CY2023.
	Our development focus has also turned toward the Kidston Stage 3 Wind Project which is the next
	stage of the Kidston Clean Energy Hub. During the period we formalised a Joint Development
	Agreement with our partner, J-POWER, which included a further $3M in committed funding for the
personal	project development activities. The project continues to progress in accordance with its
development timeline, targeting a final investment decision in 2H CY2023."

OPERATIONAL UPDATE

250MW KIDSTON PUMPED STORAGE HYDRO PROJECT (K2-HYDRO)

• The project remains on schedule and within budget for energisation in H2 CY2024;

• K2-Hydro is fully funded to commercial operations underpinned by a long-term fixed interest rate

		loan from the Northern Australia Infrastructure Facility; with construction under a fixed-price lump
		sum contract with Engineering Procurement and Construction Contractors, McConnell Dowell and
		John Holland;
	• Key site activities and works undertaken during the Period included:
		- Continuation of underground works with drilling and blasting of the Main Access Tunnel (MAT),
For	which was approximately 45% complete at quarter-end;
- Commencement of construction of the Wises Dam with approximately 15% of the 6km
embankment placed during the Period;
		- Surface blasting for excavation of Wises Dam Intake Canal;
		- Welding of dewatering pipework in preparation for the pumping of 28GL of water from Eldridge
		Pit to Wises Dam to enable the tailrace portal works to be undertaken;
		- Geotechnical works for the 186km long 275kV transmission line from Kidston to Guybal Munjan
		(Mt Fox) under construction by Powerlink Queensland;
		- Commencement of manufacture of the main inlet valve and draft tube gates for the pump-
		turbines by Andritz Hydro GmbH (Andritz); and
		- Preparation works for the construction of the 250m deep ventilation and cable shafts with
		secant piling underway for the pre-sink works on upper sections of the shafts.
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Alongside its joint development partner, J-POWER,Genex continues to advance the development works associated with the project including:

- Modelling the wind resource at a number of sites;

- Progressing the Development Approvals associated with the project; and

- Preparation for commencement of the formal Wind Turbine Generator process to select a preferred supplier, which will be utilised to underpin network studies in Q4 CY2022.

The project's Balance of Plant Contractor, Consolidated Power Projects Australia Pty Ltd, continued detailed design and procurement associated with civil and electrical works, with on-siteconstruction activities scheduled to commence in Q1 FY2023; and

Recent market volatility highlights the urgent need for storage, with the 50MW/100MWh project on track to benefit from these conditions with positive earnings and cash flow from FY2024.

KS1 revenue totalled $4.8M from net generation of 26,334MWh of renewable energy for the Period, representing an average price of $182/MWh2; and

JSP revenue for the Period comprised of $3.0M from electricity sales and $0.8M from LGC sales from net generation of 17,044MWh, representing an average bundled price of $219/MWh. The average bundled price was up 109% from the previous Period3.

Planned works for the coming period include:

- Continuation of construction of the Wises Dam and tunnelling works for the MAT;

- Commencement of civil works for the K2-Hydroswitchyard, which will receive the 275kV high voltage cables from the underground transformers;

- Continuation of the dewatering pipework and preparation works for the pontoons that house the 6 x 850kW dewatering pumps which will transfer water from Eldridge Pit to Wises Dam during the construction phase;

- Ongoing geotechnical works for the 275kV transmission line from Kidston to Guybal Munjan (Mt Fox);

- Continuation of manufacturing of electromechanical equipment by Andritz; and

- Completion of the secant pile pre-sinkworks and preparation for commencement of the raise boring works for the 250m deep ventilation and cable shafts .

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onlyuse50MW KIDSTON SOLAR PROJECT (KS1) AND 50MW JEMALONG SOLAR PROJECT (JSP)

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personalBOULDERCOMBE BATTERY PROJECT (BBP)

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KIDSTON STAGE-3 WIND PROJECT (K3-WIND)

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CORPORATE UPDATE

• There were no reportable lost time injuries or reportable environmental incidents recorded during the quarter;

1. Revenue figures are on an unaudited basis and the average price per MWh doesn't include the sale of LGCs
2. Revenue figures are on an unaudited basis

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During the Period, the Company announced it had executed a Joint Development Agreement (JDA) with J-POWER for the K3-Wind Project. The JDA continues the partnership between Genex and J- POWER for K3-Wind and provides for J-POWER to maintain its 50% interest in the project through the further contribution of A$3.0M in funding toward the development of the project;

Genex entered into a new $16M Subordinated Debt Facility with Infradebt which will be utilised to refinance the existing subordinated debt facility for the KS1 and JSP projects. This will enable Genex to retain a higher proportion of cash generated by its solar portfolio, particularly following recent strong merchant pricing in wholesale electricity markets;

During the Period, the Company's expenditure included staff and operating costs and construction activities associated with the K2-Hydro and BBP projects;

As noted in section 6 of the Appendix 4C, the amount stated therein was paid to the Directors of the entity during the quarter, comprising salaries for Executive Directors and fees for Non-Executive Directors. No other payments were made to any related parties or their associates of the entity; and Genex finished the Period in a strong cash position, with cash at bank of $62.9M.

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onlyuse personalFigure 1: Wises Dam - Placement of Embankment Fill For

Figure 2: Piling Works for Shaft Pre-sink

25th July 2022

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