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RENERGEN LIMITED - Mining Exploration Entity and Oil and Gas Exploration Entity Quarterly Report

Release Date: 31/03/2020 08:59
Code(s): REN     PDF:  
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Mining Exploration Entity and Oil and Gas Exploration Entity Quarterly Report

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

MINING EXPLORATION ENTITY AND OIL AND GAS EXPLORATION ENTITY QUARTERLY REPORT

Emerging domestic natural gas and helium producer Renergen is pleased to present the latest
quarterly update to investors. Before presenting the highlights of the achievements over the
quarter, every single employee at Renergen wishes to send out our heartfelt sympathies to those
most affected by COVID-19. The effects will be felt for a very long time to come and will arguably
present one of the largest challenges to our society and will no doubt change our way of life.

In this time of extreme uncertainty, we are pleased to assure investors that COVID-19 has not
had any significantly negative impacts to the Company as at the time of issuing this update. The
equipment is being fabricated in China where largely all production has resumed to normal
capacity and shouldn’t suffer delays. The pipeline construction will halt temporarily during the
country’s announced lock-down, but the pipeline was due to be completed ahead of schedule of
the liquefiers arriving in country, so this delay is unlikely to create any material turn-on delays with
the information we have at this point. Given our decision to raise capital when we did, the
Company is in a solid financial position and doesn’t envisage requiring any further funding for this
financial year. Commencement of drilling of the incline wells will however be delayed until the
lock-down is lifted, which will in turn create delays in when we issue our updated reserves. When
we have further updates regarding drilling, we will inform investors.

A full version of the presentation may be found on in the following link:
https://www.renergen.co.za/announcements/

In summary, the highlights for the quarter include:

•   The Company is continuing its path to deliver on its milestones
•   Construction on the pipeline and liquefiers is progressing as planned
•   To date the spread of COVID-19 has not impacted the construction schedule, and the
    situation is being constantly monitored and risk assessed
•   Drilling of the horizontal well is now complete, and the drilling of the first inclined well is due
    to commence shortly after the lifting of the country-wide lock-down
•   An additional LNG off-take agreement was signed with Bulk Hauliers International Transport
    (BHIT) for the supply of natural gas to some of their trucks, coinciding with the commencement
    of operation of the plant
•   Successful capital raise in January of A$5,750,000 replenished the capital used to consolidate
    the Virginia Gas Project on favourable terms and accreting shareholding in the underlying
    project to shareholders
•   The Company has taken stringent measures to limit the impact of COVID-19 on daily
    operations
•   The fall in oil price is not likely to have a significant impact on operations for the short to
    medium term

Cash flow Activities for the quarter

•   The cash balance as at 29 February 2020 was approximately A$14,097,400
•   A$6,000,000 was invested in the construction of the LNG/LHe plant
•   A$511,000 was invested in drilling activities
•   Options purchased to hedge again USD movement were exercised in the last quarter,
    minimising the foreign exchange losses on year end translation of the outstanding balance of
    USD20,000,000 (A$31,000,000) partial draw down of the OPIC loan. The OPIC funds were
    drawn in September 2019.
•   Renergen settled the purchase of the 10% shareholding in Tetra4 in December 2020,
    consolidating the investment in Tetra4, thereafter, raising capital in January 2020 to replenish
    cash used to settle this transaction.

We wish everyone all the very best in these challenging times and urge everyone to take every
necessary precaution in this global fight against COVID-19.

Johannesburg
31 March 2020

Authorised by: Stefano Marani
Chief Executive Officer

Designated Advisor
PSG Capital

For Australian Investors & Media, contact Citadel-MAGNUS
Cameron Gilenko, 0466 984 953
Tom Kohlen, 0419 953 526

To readers reviewing this announcement on the Stock Exchange News Service (SENS), this
announcement may contain graphics and/or images which can be found in the PDF version
posted on the Company’s website.

www.renergen.co.za

Date: 31-03-2020 08:59:00
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