Renergen Limited (JSE:REN) News - Ivanhoe Transaction Update

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”)

IVANHOE TRANSACTION UPDATE

Natural gas and helium producer Renergen provides an update on the proposed transaction with
Ivanhoe Mines Ltd. (“Ivanhoe”).

Shareholders are referred to the announcement dated 14 March 2022 and following Ivanhoe’s
initial investment to become a 4.35% shareholder in Renergen, a 120-day period was agreed to
for the fulfilment of all conditions, including inter alia, completion of further due diligence and
progressing various stakeholder and regulatory approvals, to finalise the strategic investment and
co-operation agreement (“Strategic Agreement”). Through the terms of the Strategic Agreement,
Ivanhoe would be entitled to subscribe for such number of Shares as will, after their issue, result
in Ivanhoe in aggregate holding 25% of the total issued share capital of Renergen on a fully
diluted basis (“Second Subscription”) and then a third subscription which would result in Ivanhoe
being entitled to subscribe for such number of Shares as will, after their issue, result in Ivanhoe
in aggregate holding 55% on a fully diluted basis (“Third Subscription”).

The 120-day period wherein the fulfilment of the Strategic Agreement conditions had to be
achieved has been reached, without meeting those conditions in full. Consequently, the
transaction cannot progress further and the Second Subscription (to 25%) and Third Subscription
(to 55%) proposed in the Strategic Agreement are no longer applicable and have lapsed.

“Renergen is at an exciting point of the Company’s history as we steadily march towards
commencing production at our world class Virginia Gas Project. Once in operation, the Project
will become a globally significant LNG and helium producer and importantly, will be coming online
at a time when current global LNG and helium markets are in a shortfall and helium supply
remains extremely tight.

“Importantly, it also must be noted that the equity funding for Phase Two operations at Virginia is
only required in 2023, so premature dilution for existing shareholders wasn’t necessary. This
presents a unique opportunity to commence generating revenue by bringing Phase One into
production, progress other remaining transactions and to further resource expansion through
additional drilling prior to assessing capital requirements for Phase Two,” said Stefano Marani,
CEO of Renergen.

“We are continuing to explore the potential for Renergen’s liquefied natural gas to be part of a
cleaner, reliable energy solution for our Platreef palladium, rhodium, nickel, platinum, copper and
gold mine,” added Ivanhoe President, Marna Cloete. “We look forward to the Renergen team
completing commissioning and ramping-up the Phase One operation.”

Johannesburg
15 July 2022

Authorised by: Stefano Marani
Chief Executive Officer

Designated Advisor
PSG Capital

For Australian Investors & Media, contact Citadel-MAGNUS
Cameron Gilenko, 0466 984 953

www.renergen.co.za

Date: 15-07-2022 10:00:00
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