TMK Energy Limited provided an operations update on drilling activities at the Gurvantes XXXV Coal Seam Gas Project in the South Gobi Basin in Mongolia. Snow Leopard - 03R: SL-03R has intersected a net coal thickness of ~80 metres between the depths of 455 metres and 535 metres which represents the lower coal seam at this location. The coal seam presents as a single, high quality, clean and homogenous coal seam/unit and preliminary results from desorption samples indicate the full seam contains high gas content.

Approximately 60 metres of net coal was previously intersected in the upper seam in SL-03R, consistent with the adjacent SL-03 well, resulting in a total of 140m of net coal thickness in the SL-03R well. Both the upper and lower coal seams appear to contain high gas contents (in the order of 7.5 m3/t to 12.5 m3/t on an as received basis). SL-03R is currently at a depth of 535 metres with drilling continuing ahead.

When the lower coal seam has been fully intersected and total depth is reached, the well will be geophysically logged and permeability testing will be attempted over the lower seam interval. Snow Leopard û 05: SL-05 has intersected a net coal thickness of approximately 37m in the upper seam from a depth of approximately 155m. Coal core has been sampled for gas desorption, adsorption and composition analysis.

Gas desorption measurements from the samples collected is ongoing, however as expected, preliminary results indicate that the shallow coal intersected has low to moderate gas contents, with gas contents increasing with depth. Low gas contents from coal at depths of <200 metres is typical for coal seam gas wells. SL-05 is currently at a depth of 350 metres and is drilling ahead to target the lower seam which is interpreted to exist at this location.

SL-05 is expected to be drilled to a total depth of approximately 650m. Contingent Resource Assessment: On completion of drilling of SL-03R and SL-05, the 2022 exploration drilling program will be completed and the results from all the wells will be integrated into the geological model and will allow the Company to commence its maiden Contingent Resource assessment over the ~24 square kilometres that represents the central Narrin Sukhait area and is expected to be completed early fourth quarter 2022. This initial area, which represents <1% of the total prospective area within the 8,500 square kilometres within the Gurvantes XXXV Project area, is the first step in demonstrating the enormous potential of the CSG resources in the area.