Province Resources : Announces Positive Scoping Study

only	ASX Announcement
(ASX: PRL)
2 March 2022
Completion of Scoping Study Allows HyEnergyTM Green
	Hydrogen Project to Move Forward
Highlights:
• Completion of positive Scoping Study opens the way for Province and Total Eren (together "the
use	Partners") to commence Pre-Feasibility Study
• Completion of the Scoping Study has also launched the commencement of negotiations on a
personal	Joint Development Agreement (JDA) between the Partners.

Province Resources and Total Eren have completed the Scoping Study for their planned HyEnergyTM green hydrogen development in the Gascoyne region of Western Australia. Attached is a summary

f the outcomes of the Scoping Study.

The completion of the Scoping Study marks a significant milestone in the development and allows the project to move into its next phase.

The Scoping Study found that thanks to the prevailing wind conditions and quality of the solar r source in the Gascoyne region, optimized configuration of wind turbines and solar farms would lead to a relatively high-capacity factor and electrolyser utilisation.

Development requirements which were part of the Scoping Study included solar arrays and wind turbines, transmission lines, electrical infrastructure, road works, electrolysers, batteries and

Forhydrogen storage and administration buildings.

Province Resources signed a binding Memorandum of Understanding with Total Eren in April 2021 to work jointly on the Scoping Study and the Partners have now begun discussions on a JDA.

Total Eren is a global renewable energy Independent Power Producer ("IPP") with more than

3.5 GW of solar and wind farm assets in operation or under construction. Total Eren is circa. 30% owned by TotalEnergies, one of the world's largest energy companies.

Province and Total Eren have also executed a Memorandum of Understanding with Perth-based Global Energy Ventures (ASX:GEV) to study the export of green hydrogen to Asian markets using a compressed hydrogen marine supply chain, which is progressing well.

Province Resources Ltd ABN 83 061 375 442 - 358 Rokeby Road, SUBIACO WA 6008 PH: [phone]

Province is continuing to progress the necessary licences and other approvals from the Western Australian Government to provide land access required for feasibility studies. This process includes consultation with the Yinggarda (Ingaarda) and Baiyungu native title holders, pastoralists, the Shire of Carnarvon and the broader Gascoyne community.

Province Resources Managing Director David Frances said it was exciting to have concluded the onlyScoping Study and to decide to undertake the Pre-Feasibility phase of the HyEnergy™ Project.

"The Scoping Study has helped further define the technical and other requirements for this project, allowing the commencement of more detailed work which will inform the development," Mr Frances said.

"This process has satisfied us that there is broad support for the HyEnergy™ Project from key stakeholders and given us great confidence as we keep moving forward with this development".

use"Green hydrogen will play a significant role in enabling countries to meet their net zero by 2050 targets and the HyEnergy™ Project can be a major contributor to global supply."

In accordance with ASX and ASIC policy, the Scoping Study does not include any forecast financial information, including capital cost estimates, on the basis that there may not be a reasonable basis for including this information based on the preliminary nature of the Scoping Study. Province

personalexpects to be able to more accurately define these variables as part of the Pre-Feasibility phase on the HyEnergy™ Project.

Completion of this important milestone triggers performance milestones in the Class A Performance Shares issued to the original vendors of the HyEnergy Project (see ASX release dated 17 February 2021) and Class A Performance Rights issued to certain directors and staff during 2021. The Appendix 2 and cleansing notice follows.

This ASX announcement has been approved for release by Province's Board of Directors.

For more information contact:

David J Frances Managing [e-mail]

For

Province Resources Ltd ABN 83 061 375 442 - 358 Rokeby Road, SUBIACO WA 6008 PH: [phone]

For personal use only

ASX Release - 2 March 2022

PROVINCE RESOURCES - HyEnergyTM PROJECT SCOPING STUDY

HIGHLIGHTS

• Scoping Study for the HyEnergyTM Project confirms the technical feasibility for an integrated green energy production project, using renewable power generated from the identified Gascoyne Resource.
• The Scoping Study is based on a 2 Phase Development:
• • Phase 1 - Construction and Operation of 4GW of Upstream Power Generation, using an optimized mix of wind turbine and solar arrays, transmission infrastructure and downstream hydrogen production facilities initially involving 2.6 GW of electrolysers with compression and storage. Phase 1 is also intended to include all common infrastructure as well as downstream hydrogen processing facilities such as ammonia production, liquefaction, compression, storage, pipeline injection. Downstream hydrogen processing facilities will be determined during the PFS and will be optimized to suit economic market demand for the products.
  • Phase 2 - Expansion of facility by a further 4GW of renewable power generation to support an additional 2.6GW of hydrogen electrolysers. Additional downstream hydrogen processing facilities will be included, again reflecting the market demand for the products in the future.
  • Province Resources' multidisciplinary in-house team addressed key areas including traditional owner engagement, government engagement, commercial agreements, technical development, environmental approvals and project risk management, supported by various expert consultants, supporting the development of the HyEnergyTM Project.
  • Province Resources signed a binding Memorandum of Understanding with Total Eren in April 2021, requiring the completion of the scoping study. The parties have begun discussions on a Joint Development Agreement (JDA).
  • Positive Scoping Study outcomes have supported the decision to move into a detailed Prefeasibility Study in 2022 targeted for completion in Q1 2023. This PFS will support future critical engagements and decisions moving the project forward.
  • Province Resources is a first mover in large scale green hydrogen production in Australia and continues to make meaningful strides in moving the project towards a reality.

PROVINCE RESOURCES LIMITED I 358 ROKEBY ROAD, SUBIACO WA 6008 I info@provincersouce I [phone]

www.provinceresources.com.au

For personal use only

SCOPING STUDY PARAMETERS - CAUTIONARY STATEMENTS

In accordance with the ASX Interim Guidance on reporting on scoping studies, the Scoping Study referred to in this announcement is a preliminary technical and economic study of the potential viability of the HyEnergyTM Project required to reach a decision to proceed with more definitive studies. It is based on low level technical and economic assessments that are not sufficient to support or to provide any assurance of an economic development case.

To achieve the range of proposed Feasibility Studies and potential project development outcomes indicated in the Scoping Study, additional funding (beyond the Pre-Feasibility Study stage) will be required.

Investors should note that there is no certainty that Province Resources Limited will be able to raise funding when needed. It is also likely that such funding may only be available on terms that may be dilutive or otherwise affect the value of Province Resources Limited's existing shares.

It is possible that Province Resources Limited could pursue other value realisation studies such as sale, or partial sale of the Project. If it does, this could materially reduce Province Resources Limited proportionate ownership in the Project.

Province Resources Limited has, concluded, that based on the results of the Scoping Study and strong market fundamentals there is sufficient degree of confidence to progress to the Pre-Feasibility stage, however, given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Scoping Study.

PROVINCE RESOURCES LIMITED

Page 2 of 19

SCOPING STUDY 2022

For personal use only

HyEnergyTM PROJECT

SUMMARY