Renergen : Quarterly Activities Report

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Quarterly Activity Report

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March 2022

Introduction

Herewith is the quarterly activities report for the quarter ended 28 February 2022. Please note that all the Company's Production Right areas remained fully owned by our 100% owned subsidiary Tetra4, however, post-quarter-end, the Company reached a conditional agreement to sell a 10% interest in Tetra4 to the Central Energy Fund (CEF) as announced to the market on the 28th March 2022.

In addition, post end of the quarter, the company made a strategic placement raising AUD $18,3 million / ZAR 200,6 million, announced to the market on 14th March 2022.

Highlights

Significant highlights from this quarter, in chronological order, include:

Italitile LNG Supply Offtake Agreement

Ivanhoe Mining Investment

Central Energy Fund Investment (CEF)

2 new wells blowing

Plant (Virginia Gas Plant) update

Italtile LNG Supply Offtake Agreement

Italtile is South Africa's preeminent supplier of tiles and bathroom accessories and is listed on the JSE as one of the country's blue-chip companies

• • Italtile uses a significant amount of thermal energy in the production process of ceramics, and in a bid to ensure a secure source of low-carbon fuel has entered into an offtake agreement with Renergen for the supply of LNG

• • The contract will see Italtile supplied with 800 GJ per day of LNG at a price linked to CPI, allowing it to better forecast its energy input costs and not be subjected to the currently volatile commodity markets

• • This is an anchor customer, and paves the way for the Renergen's Phase 2 LNG rollout into the industrial customer market, displacing liquid petroleum gas (LPG)

Funding for Phase 2 - Strategic Partnership With Ivanhoe Mines

• • Ivanhoe Mines Limited acquired 4.35% shareholder through an initial placement of 5,631,787 shares at R35.625 per share (c. US$2.37 or AUD3.24) at a 5% discount to 30-day VWAP

• • Strategic investment agreement creates a pathway for Ivanhoe to increase its shareholding to a 25% shareholding (market-related 30-day VWAP - 10%), following completion of 120-day due diligence period

• • Ivanhoe thereafter has the option to increase its shareholding in Renergen up to 55% (market-related 30-day VWAP - 10%), electing to provide equity funding of up to US$250,000,000

• • Ivanhoe retains the right to utilize Renergen's LNG to power its platinum operations in South Africa in a bid to take the mine off-grid using clean energy

Ivanhoe Mines and Renergen senior officials sign the agreement for Ivanhoe's initial equity investment in Renergen. Front row (L-R): David King (Chairman, Renergen), Marna Cloete (President, Ivanhoe Mines), Stefano Marani (CEO, Renergen); Back row (L-R): Nick Mitchell (COO, Renergen), David van Heerden (CFO, Ivanhoe Mines).