Pure Hydrogen : Quarterly Report

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December 2021 Quarterly Report

HIGHLIGHTS

Signed a binding term sheet with BLK Auto Pty Limited to become a supplier of hydrogen and reseller of hydrogen fuel cell electrical vehicles.

Signed Term Sheet with CAC-H2 to build waste to hydrogen plants in Brisbane, Sydney and Melbourne. First plant planned to be online in Caboolture producing high purity green hydrogen suitable for fuel cell vehicles & mobility.

Completed the H2X Global Limited ("H2X") transaction outlined in October and now holds about 24% of H2X with options to go to 48% ownership.

Pure Hydrogen in conjunction with H2X launched a range of hydrogen fuel cell power generation units - POWER H2 electricity power units.

Post balance date, H2X signed a binding term sheet with Advik High-Tech Pvt Ltd establishing a joint venture company for products and components for hydrogen vehicles and powered products for India and global market.

CSG appraisal well Serowe 4 - Serowe Gas Project, Botswana encountered 31 metres of interpreted gassy coal seams - +150% thicker than pre-drilled estimates. Serowe 5 was also drilled confirming the field is open in all directions. Serowe 5 and 4 wells are both 5 kilometre step-outs from Serowe 3.

Resource upgrade on Serowe Gas Project during the quarter ( Before Serowe 4 and 5) resulting in 2C Contingent Gas Resources of 160 BCF and Prospective Resources of 10.07 TCF.

Very well-funded with cash of $12.1 Million as at 31 December 2021 and a tight focus on costs.

Pure Hydrogen Corporation Limited

ASX: PH2

Pure Hydrogen is an Australian east coast focused Energy Company with Hydrogen and Gas businesses. The Company has an interest in a hydrogen fuel cell vehicle development company, five Hydrogen projects under development, and three gas projects, Windorah Gas Project in the Cooper Basin, Australia's most prolific onshore producing petroleum basin, Project Venus CSG in the Surat Basin in Queensland and the Serowe Project CSG in Botswana.

Pure Hydrogen has an Independently Certified 1C, 2C, 3C Contingent Gas Resources (Net to Pure) over its three gas projects of:

1C 268 PJ;

2C 546 PJ;

3C 1,014 PJ.

Directors

Ron Prefontaine - Non Executive Chairman Scott Brown - Managing Director

Lan Nguyen - Non Executive Director

Corporate Office

119 Willoughby Road Crows Nest 2065 Tel: + 61 2 9955 4008 www.purehydrogen.com.au [e-mail]

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Pure Hydrogen Corporation Limited (ASX: PH2 and "Pure Hydrogen" or "The Company") is pleased to provide this report to shareholders for the quarter ended 31 December 2021 (Q2 FY2022). During the period, the Company focused primarily on the growth and development of its hydrogen fuel and hydrogen fuel cell vehicle businesses and advancing its gas Projects - Project Venus and Project Serowe.

Also during the quarter, the Company completed the transaction with H2X Global Limited and now holds around 24% of the company with options to increase ownership to 48%. Pure Hydrogen's H2X launched a range of Power H2 hydrogen fuel cell power generation units, the Power H2 units, that can supply electricity without any emissions using hydrogen fuel. A term sheet was signed with CAC-H2 to build waste hydrogen plants in Brisbane, Sydney and Melbourne.

Picture: L-R David Jiear - BLK Auto National Fleet Manager, Clint Butler - Pure Hydrogen Sales Manager: "Building a strong network of partnerships is a firm belief for both Pure Hydrogen & BLK Auto."

After the quarter ended, H2X entered an agreement to establish a joint venture with Advik High-Tech Pvt Ltd for products and components for hydrogen vehicles and powered products for the Indian and global market. In addition, Pure Hydrogen signed a binding term sheet with BLK Auto to supply hydrogen and resell hydrogen fuel cell electrical vehicles to customers.

Pure Hydrogen overview

Pure Hydrogen is focusing on building an integrated hydrogen company. Hydrogen has the potential to be a complete game-changer for Australia's clean energy roadmap. The most exciting aspect about hydrogen is that it has many benefits for the environment - used in fuel cells it produces only water vapour and electricity, and as a fuel, it produces more energy per kilogram than natural gas and other

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fossil fuels. Pure Hydrogen's plan is to rapidly assemble all parts of the hydrogen value chain with the goal to build and develop a large-scale integrated hydrogen business. During the December 2021 quarter and up to the current date Pure Hydrogen accomplished the following hydrogen initiatives:

• Progressing the development of hydrogen fuel cell vehicles through acquiring around 24% stake in H2X Global Limited and our subsidiary Pure X mobility.
• Launched a range of hydrogen fuel cell power generation units in conjunction with H2X, called Power H2 that can supply electricity without emissions using Hydrogen fuel.
• Post quarter ended entered a supplier agreement with specialist vehicle importer BLK Auto Pty Ltd for an initial five year term to become a supplier of hydrogen and to resell HFCEV's (hydrogen fuel cell electric Vehicle) to its customers
• Planning for Emerald hydrogen plants (waste to hydrogen plants) in Brisbane, Sydney and Melbourne with CAC-H2, with the first plant planned for Caboolture. The plants will produce high purity green hydrogen suitable for fuel cell vehicles and mobility.
• JV signed between Pure Hydrogen's investee company H2X and Advik High-Tech Pvt Ltd for products and components for hydrogen vehicles and powered products for the Indian and global market.
• Developing a professional team to take advantage of the opportunities in the sector and develop the Company's businesses and projects.

H2X Transactions for H2 Vehicle manufacturing

In November 2021, the Company completed the transaction to acquire around a 24% stake in H2X Global Limited with options to increase its holding to 48%.

H2X is an innovator in hydrogen automotive technology and is behind the team bringing the much- heralded Warrego hydrogen utility to the Australian market for sale in the first half of CY2022. It also has a range of hydrogen powered vehicles and power generation units. H2X focuses on unique fuel cell technology and hydrogen powertrains for commercial transport operations such as utilities, buses, trucks, vans and prime movers.

H2X's Warrego - expected to be launched in 2nd Quarter CY2022

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This investment by Pure Hydrogen will underpin the operations of H2X and strongly positions Pure Hydrogen to capitalise on new and evolving hydrogen technology. It also greatly strengthens H2X's capacity to develop a variety of hydrogen fuel cell powered vehicles including trucks, buses, utilities as well as hydrogen powered generators.

H2X is establishing H2 vehicle manufacture facilities in multiple locations. So far the locations are in Australia, Netherlands, India and Malaysia. The Australian facility is an existing premises in Sale, Victoria located in the airport Mechanical Trades Precinct and its approximately 1.65 ha. It is expected to start occupying the facility within the next few weeks. The Netherlands site is through a production partner at Ginaf, in Veenendaal Netherlands under contract assembly for European/Left Hand Drive Deliveries. H2X partnership with Advik signed after the end of the quarter will add manufacturing and production in India.

In Malaysia, H2X signed a Memorandum of Understanding (MOU) with Economic Development Corporation (SEDC), an arm of the State Government of Sarawak, and through its wholly owned subsidiary SEDC Energy, for the manufacturing, assembly and development of a range of strategic transport projects. The MOU stipulates that H2X will establish a joint venture with SEDC Energy to produce long haul vehicles, and in the immediate term, begin with assembly of relevant vehicles from the Warrego hydrogen utility to city buses and also H2X hydrogen powered generators, and take advantage of the hydrogen distribution network set up within Sarawak. The Sarawak Government first introduced hydrogen powered vehicles in 2019 and the new agreement will see H2X supply and assemble more vehicles including buses to meet growing demand.

Picture of one of Advik's production facilities.

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personalFor Hydrogen power generators

In December, Pure Hydrogen in conjunction with H2X Global Limited, launched a range of hydrogen fuel cell power generation units, the Power H2 unit, that can supply electricity without any emissions using hydrogen fuel.

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