Waroona Energy : News release

Announcement

04 October 2023 | TSX:WHE

Definitive Feasibility Study commences for a

120MWdc Solar facility

Waroona Energy Inc. (TSXV: WHE; OTC: WHEFF) ("Waroona" or the "Company") is pleased to announce the commencement of a Definitive Feasibility Study ("DFS") for a 120MWdc solar facility at the Company's Waroona Renewable Energy Project (the "Project") in Western Australia ("WA").

The DFS will be completed in early 2024, ensuring the solar facility development remains on track to commence in the first half of 2024.

HIGHLIGHTS

• The Company has engaged electricity and solar energy specialist, Incite Energy Pty Ltd, to complete a DFS for a 120MWdc Solar Facility ("Stage One") at the Waroona Renewable Energy Project
• The DFS will finalise the detailed design, including site layout, equipment specification and capital costs estimate (accurate to ±15%) for the Stage One development
• Given the significant work already completed, the DFS will be released in early 2024

• 1. The Project has all major permits, approvals and an executed Electricity Transfer Access Contract and Interconnections Work Contract (ETAC) to WA's electricity network (SWIS) in place
• The Company continues to advance a Study for a 120MW green hydrogen-fuelled peaking plant ("Peaking Plant") that remains on track for completion in 4Q2023
• 1. A Peaking Plant was identified as an early consumer of green hydrogen, given it's a proven technology, the market is already in place (electricity) and no legislative changes are required for its development
• The Company continues to work with Frontier Energy Limited (FHE.ASX or Frontier) to progress binding agreements following the execution of a non-binding letter of intent ("LOI") that would see Frontier acquire Waroona ("Proposed Transaction")
• 1. Under the terms of the Proposed Transaction, and as described in the Company's September 5th news release, Frontier would acquire all issued and outstanding common shares of Waroona ("Waroona Shares") on the basis of 1 Frontier share for every 4.27 Waroona Shares

Adam Kiley, President and CEO, said: The development of a solar facility is central to the Company's long-term strategy to diversify across a number of areas of the renewable energy sector. This strategy will include solar production, hydrogen production (through solar energy) as well as hydrogen consumption (through a peaking plant).

Given the significant work completed on the solar project already, including all major permits, approvals, and an executed ETAC to WA's electricity network already in place, the DFS can be fast tracked and completed by early 2024. This ensures the Company remains on track to meet its target to commence solar development by the first half of 2024.

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DFS for 120MWdc solar farm underway

The Company has appointed electricity and solar energy specialist, Incite Energy Pty Ltd ("Incite"), to complete a DFS for a 120MWdc Solar Facility ("Stage One") at the Waroona Renewable Energy Project. The Company has an approved Declared Sent Out Capacity (DSOC) of 213MWac (241MWdc) from Western Power, of which Stage One will be targeting to deploy 120MWdc of the approved capacity.

Image 1: Artist impression of the Solar facility and peaking plant on Waroona's landholding

Incite was selected through a competitive tender process due to their expertise in the industry and their exceptional track record, including several operational utility-scale projects across Australia (ranging from 50MW - 300MW) and multiple utility-scale solar farms and load connections currently in early-stage development in Western Australia.

The Scope of Work for the DFS includes:

1. Layout - considering clearing limitations, flood studies, road servitudes, drainage channel, and allocating areas for future Peaker Plant and hydrogen plant
2. Design
3. Equipment specification and supplier quotations
4. Update and refinement of geotechnical information
5. Construction and commissioning scope and costing
6. Interfacing with Western Power

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A DFS was preferred at this time compared to appointing an EPC contractor to carry out an early works program as was contemplated previously1. This decision was made as it is more cost effective, both in the short and long term.

This approach allows the Company to consider a more flexible approach through the construction phase, as it allows for the Company to manage procurement of key equipment, including critical path long lead items, in-house. This would likely reduce the overall capital requirement whilst having no material impact on timing to Final Investment Decision (FID). The Stage One DFS will be delivered in early 2024.

Expansion opportunities, including utilising the Company's total landholding (303ha) that could produce 241MWdc or more, as well as a corporate transaction with Frontier Energy2, that would see future solar production reach 1.1GW, will continue to be assessed in the future.

Image 2: Proposed Waroona solar farm, peaking plant and hydrogen facility layout

1. See News Release 2 August
2. See News release 5 September 2023

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ON BEHALF OF THE BOARD
For further information, contact:
Adam Kiley	Tony Wonnacott
President & CEO	Chairman
[phone] (Australia)	+1 416.953.5879 (North America)
[e-mail]	[e-mail]
Website:www.waroonaenergy.com

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking statements within the

Certain statements contained in this news release constitute forward-looking statements within the meaning of Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward-looking statements and include, without limitation, statements about the Company's development plans for the Project, the Definitive Feasibility Study, the studies on a potential Green Hydrogen Peaking Plant, statements about the proposed transaction with Frontier, the entering into of any definitive documentation, the terms of any potential acquisition of the Company by Frontier, and expectations with respect to the combined company. Often, but not always, these forward looking statements can be identified by the use of words such as "estimate", "estimates", "estimated", "potential", "open", "future", "assumed", "projected", "used", "detailed", "has been", "gain", "upgraded", "offset", "limited", "contained", "reflecting", "containing", "remaining", "to be", "periodically", or statements that events, "could" or "should" occur or be achieved and similar expressions, including negative variations.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by forward-looking statements. Such uncertainties and factors include, among others, the uncertainties inherent in the estimated economics of the Company's projects; whether exploration and development of the Company's properties will proceed as planned; changes in general economic conditions and financial markets; the Company or any joint venture partner not having the financial ability to meet its exploration and development goals; risks associated with the results of exploration and development activities, estimation of mineral resources and the geology, grade and continuity of mineral deposits; unanticipated costs and expenses; risks associated with COVID-19 including adverse impacts on the world economy, exploration and development efforts and the availability of personnel; and such other risks detailed from time to time in the Company's quarterly and annual filings with securities regulators and available under the Company's profile on SEDAR+ at www.sedarplus.ca. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.

Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to: the accuracy of the estimated economics of the

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Company's projects; that the Company's stated goals and planned exploration and development activities will be achieved; that there will be no material adverse change affecting the Company or its properties; and such other assumptions as set out herein. Forward-looking statements are made as of the date hereof and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking statements.

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