Daydream-2 Update

Elixir Energy Limited (Elixir or the Company) is pleased to provide an update on the next stages of its Daydream-2 appraisal well in its 100% owned Grandis Gas Project (ATP 2044), located in the Taroom Trough of the Bowen Basin, Queensland.

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HIGHLIGHTS

• Very positive log results for recently discovered deep permeable zone
• Extent of this new play could be significant
• Stimulation and testing phase due to commence imminently

Following the rig release announced on 20 December 2023, Elixir’s technical team and various service providers have been evaluating the data gathered to date. Further inputs are due in the weeks to come from external laboratories.

The discovery of the presence of porous and permeable sandstone reservoirs at 4,200 metres in the Daydream-2 well - which produced gas to surface - has great significance for Elixir’s Grandis Project

- and for the greater Taroom Trough. Daydream-2 was drilled to a total depth of 4,300 metres, which Elixir understands to be the deepest well in Queensland in over a decade.

During the drilling of Daydream-2 in December 2023, the well intersected a sandstone interval with significantly better than prognosed reservoir properties. Porosity of greater than 10% was logged, which is generally unusual for this depth onshore, other than in certain locations such as the Permian section of the Perth Basin.

The petrophysical log analysis and the recovery of gas indicates that there are three sandstone reservoirs in this section that are gas saturated. The gross thickness of these sands extends over ~12 metres.

Daydream-2 Petrophysical Logs over the Lower Lorelle Sandstone

The log character of the zone reveals significant information about the sands, namely:

1. The sands have sharp bases and are generally fine upwards, indicating they were deposited in a channelised fluvial depositional setting.

2. A good “resistivity profile” is noted between the shallowest and deepest readings. This is considered a good indicator of permeable rock and is particularly evident in Sand 1.

3. The yellow highlighted cross-over of the neutron and density logs is generally an indicator of gas producing reservoir sandstone in the Cooper and Bowen Basins.

Stratigraphic correlations show a similarity with the Lower Lorelle Sandstone identified in the well reports from the Dunk-1 well drilled by BG Group around a decade ago – located in PCA 305 (Shell – 100%) some 26 kilometres away – see map below.

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