RENERGEN LIMITED
Incorporated in the Republic of South Africa
(Registration number: 2014/195093/06)
JSE Share code: REN
A2X Share code: REN
ISIN: ZAE000202610
LEI: 378900B1512179F35A69
Australian Business Number (ABN): 93 998 352 675
ASX Share code: RLT
(“Renergen” or “the Company” or "the Group")


     REVIEWED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX
     MONTHS ENDED 31 AUGUST 2023


1.   SALIENT FEATURES

The period for the six months ended 31 August 2023 (“H1 2024”) saw the Group achieve many
goals in the progression of Phase 2 of the Virginia Gas Project (“VGP”), bringing us closer to
realising our ambitions of becoming a global helium player. In this regard, the VGP retains its
status as a strategic integrated project as designated by the South African government as
previously reported, and the Group continues to benefit from the support of the United States
Development Finance Corporation (“DFC”) alongside our new lending partner Standard Bank
of South Africa (“SBSA”).
The first six months of FY2024 saw continued growth as we cemented our place as a
significant player in the local LNG market. Our strategic intent during H1 2024 was to ramp up
LNG production from Phase 1 of the VGP and to secure funding for the development of Phase
2 of the project. The Group had several wins in these areas, and also experienced a few
challenges. We will continue to apply the learnings from these challenges to maximise the
opportunities that exist for our current operations and for the development of Phase 2 of the
VGP. Overall, we are pleased with the progress achieved to date and our key highlights for
H1 2024 are summarised below:

     •   2 386 tonnes of LNG produced during the period.
     •   Approval of senior debt funding by the DFC (US$500.0 million) and SBSA (US$250.0
         million), subject to conditions precedent.
     •   Acquisition of a bridge loan amounting to R303.0 million from SBSA and the
         subscription for Renergen debentures amounting to US$3.0 million (R56.0 million) by
         AIRSOL SRL, a transaction linked to the planned and broader initial public offering of
         Renergen shares on the Nasdaq Stock Market.
     •   Conclusion of an LNG offtake agreement with Time Link Cargo (“Time Link”) with
         supply expected to commence from the first quarter of the next financial year, produced
         from the remaining Phase 1 capacity.
     •   The start of an additional gas drilling campaign of approximately 15 wells. The first well
         was successfully drilled, showing, a helium concentration above 3% and a flow rate of
         70 000 cubic feet per day. After spudding additional wells, these new wells are showing
         early signs of gas and are being assessed and tested.
     •   Identification of additional gas reservoirs from the analysis of completed gravity and
         aeromagnetic surveys.
   •   Granting of the Phase 2 environmental authorisation by the Department of Mineral
       Resources and Energy (“DMRE”).
The VGP comprises exploration and production rights over 187 000 hectares of gas fields
across Welkom, Virginia and Theunissen, in the Free State Province in South Africa.
Exploration, development, and production activities of the VGP are undertaken on behalf of
the Group by Tetra4. As of 28 February 2023, the VGP’s proved plus probable (“2P”) helium
and methane reserves totalled 420.5 BCF. This abundance of methane and helium reserves
which can be extracted at a lower cost relative to our peers provides the Group with a
competitive advantage in meeting the growing demand for LNG and helium worldwide.
Operations review
VGP – Phase 1
LNG production capacity saw substantial quarterly increases in volume over the period in
question as flow rates were ramped up and operations increased in efficiency. The leak in the
helium cold box, as previously reported and referred to below, necessitated its removal for
repair with a corresponding return and reintegration back into the plant. This requires down
time, and so we took the decision to bring forward the annual maintenance to coincide with
this reintegration. While it means longer commissioning, it correspondingly also means less
interruptions, once operational. The next quarterly production figures will represent reduced
LNG production due to the downtime associated with the repairs, reintegration and scheduled
maintenance, which will have an impact on the remaining year’s operational efficiency.
LNG
During the period under review LNG production totalled 2 386 tonnes at an average rate of 17
tonnes per day of which 92% was sold to the Group’s two local customers with the balance
remaining as closing inventory. Tetra4 expects to increase LNG production over the coming
months and plans to reach the maximum nameplate capacity of 50 tonnes per day by H1
2024, as the drilling campaign progresses along with the connection and tie into the existing
gas gathering pipeline infrastructure.
In May 2023, Tetra4 concluded an LNG offtake agreement with Time Link, a domestic logistics
company. The agreement will see Time Link transition their fleet from exclusive diesel
operation to a dual-fuel LNG alternative, reducing cost and improving their overall emissions
footprint. The LNG will be dispensed from an LNG filling station based in Time Link’s depot.
LHe
Renergen reported the identification of a leak in the helium cold box which ultimately needed
to be repaired before production of LHe could commence. Commissioning is on track to
commence production of LHe before the end of this calendar year.
VGP – Phase 2
H1 FY2024 has seen the Company achieve its planned milestones to date in the progression
of Phase 2 of the VGP. The full extent of the project amounts to a total capex spend of up to
US$ 1.2bn, with US$ 750mn of debt already secured from our lenders, the US DFC and
Standard Bank of South Africa. The equity for Phase 2 is intended to be raised in two tranches
with the primary tranche being sufficient to see the Company bring a 30 million standard cubic
feet plant into operation. A plant of this size is sufficient to cover all debt payments while still
producing healthy profits. The remaining equity tranche will see the plant expanded to a 45
million standard cubic feet per day plant which is capable of producing the previously
announced estimated EBITDA of between R5.7bn and R6.2bn per annum, once the plant is
in full production, which we expect to occur in the financial year after construction has been
completed but not anticipated to be before FY2027.
This approach will not delay the intended turn-on of the Phase 2 plant and will ensure that
capital is raised in an orderly manner to minimise equity dilution and risk to shareholders. We
will secure the balance of the funding in US capital markets amid peers in the transition energy
sector.
With respect to the acquisition of debt, in June 2023, Renergen secured approvals from the
DFC and SBSA for funding amounting to US$500.0 million and US$250.0 million, respectively.
This debt funding is subject to the fulfilment of conditions precedent – mainly the completion
of a first equity tranche – and other conditions which are standard for loans of this nature and
similar to those for Phase 1 funding.
The Phase 2 expansion will not impact Phase 1 operations and Renergen’s goal is to achieve
commercial operation of Phase 2 during the 2027 calendar year. Phase 2 will produce 688
tonnes of LNG per day and 4.2 tonnes of LHe per day once fully ramped up to name plate
capacity is achieved. To date Renergen has completed feasibility studies and front-end
engineering design for Phase 2. Worley RSA Proprietary Limited has been selected for the
scope of the owners engineer role. More recently, the Phase 2 environmental authorisation
was granted by the DMRE. Renergen has also secured multiple 10 to 15-year take-or-pay
offtake agreements with several top-tier global industrial companies for just over 50% of the
anticipated LHe production. The balance of the LHe is earmarked for sales in the international
spot market and will allow the Company to participate in the existing LHe commodity price
upside. All LHe sales agreements are denominated in US Dollars with pricing increasing
annually at the rate of growth of the United States Consumer Price Index.
With respect to Phase 2, Renergen expects to contract a majority of the Phase 2 LNG on 5 to
8 year take-or-pay agreements, servicing the industrial, logistics and gas-to-power industries.
A significant gas shortage described as a “gas cliff” by local media is expected to occur in
South Africa forecast from H2 2026. The timing of the perceived gas cliff and the forecast early
startup of our Phase 2 operation is coincidental but also opportune. The Company has been
engaged in many discussions with large consumers of natural gas since the anticipated
shortage was announced earlier this year. The Company foresees the scarcity of energy
sources in South Africa to positively impact modelled revenues as energy prices have
historically escalated at levels above those of domestic inflation rates.
Revenue from ordinary activities increased by R22.6 million from R1.2 million for the six-month
period ended 31 August 2022 (“Prior Reporting Period”) to R23.8 million in the six-month
period ended 31 August 2023 (“Current Reporting Period”).

The total comprehensive loss for the period increased by 77.6% from a loss of R24.5 million
in the Prior Reporting Period to a loss R43.5 million in the Current Reporting Period.

Headline loss per share increased by 54.9% from a headline loss of 19.31 cents per share in
the Prior Reporting Period, to a headline loss of 29.91 cents per share in the Current Reporting
Period.

Loss per share increased by 54.9% from a loss of 19.31 cents per share in the Prior Reporting
Period, to a loss of 29.91 cents per share in the Current Reporting Period.

The board of directors has elected to not declare a dividend for the period ended 31 August
2023 (August 2022: nil).
2.   SHORT-FORM ANNOUNCEMENT

This short-form announcement is the responsibility of the directors of the Company. It contains
only a summary of the information in the full announcement (“Full Announcement”) and does
not contain full or complete details. The Full Announcement can be found at:

https://senspdf.jse.co.za/documents/2023/JSE/ISSE/REN/RENHY24.pdf

A copy of the Full Announcement is also available for viewing on the Company’s website at
https://www.renergen.co.za/reviewed-interim-consolidated-financial-statements-for-the-six-
months-ended-31-august-2023/.
Any investment decisions by investors and/or shareholders should be based on consideration
of the Full Announcement, as a whole.

These interim results have been reviewed by the Company’s auditors, BDO South Africa
Incorporated, who expressed an unmodified review opinion thereon. The auditors have
however drawn the readers’ attention to the fact that that while the Group is finalising its
funding initiatives as highlighted during the period, material uncertainty relating to going
concern remains as a result of the required regulatory and other approvals and the completion
of the funding initiatives. These represent material uncertainties that may cast significant doubt
on the Group’s ability to continue as a going concern and therefore, that it may be unable to
realise its assets and discharge its liabilities in the normal course of business. Their review
conclusion is not modified in respect of this matter.

Johannesburg
31 October 2023

Authorised by: Stefano Marani
Chief Executive Officer

Designated Advisor
PSG Capital

For all media relations please contact:
Mandy Stuart
Head of Marketing & ESG Management
mandy@renergen.co.za

For all US investors and media relations please contact:
Georg Venturatos / Jared Gornay – Gateway Group, (949) 574-3860
Ren@gateway-grp.com

www.renergen.co.za