TMK Energy Limited announced that it is progressing an opportunity to utilise the expected gas production from its Pilot Well Program at the Gurvantes XXXV Coal Seam Gas project in Mongolia. As announced in the Company's ASX release of 15 February 2023, an important aspect of the Pilot Well Program is to determine the most economical and environmentally efficient way to utilise the gas produced during the initial production testing phase. Subject to regulatory approvals and sufficient gas flow rates being achieved, the Company plans to utilise the gas from the three proposed pilot wells to produce up to 10MW of power to provide electricity for the Gurvantes Project and the immediately adjacent mining operations.

Additionally, the Company has commenced feasibility studies of expanding its power generation capability to supply the forecast local power demand of ~70MW1 from nearby mining operations and communities thereby potentially displacing the current unreliable and higher cost alternative electricity supply. Further studies are underway to look at other domestic opportunities that exist in CNG (Compressed Natural Gas), mini scalable LNG (Liquified Natural Gas) plants and large scale power generation in the South Gobi province. The South Gobi province hosts several very large energy users and is connected with the central power grid.

Studies are currently being completed with cooperation from PetroChina subsidiary EPC service providers. Despite the formal six month term of the previously signed Memorandum of Understanding with PetroChina having lapsed on 6 February 2023, discussions remain ongoing with representatives of PetroChina as evidenced above, for either a more comprehensive agreement going forward or an extension of the existing MOU. The company's management team will continue to engage with PetroChina over the coming months as the Company works to deliver its key milestones which are aimed at delivering a proof of concept and gas to surface from the world-class resource that exists at the Gurvantes XXXV Project.