Liquefied Natural Gas : Quarterly Highlights and Appendix 4C

Microsoft Word - LNGL_June 2016 Qtr Highlights and Appendix 4C Final.docx

Schematic Site Layouts for the proposed 8 mtpa or greater Magnolia LNG Project in the Port of Lake Charles, Louisiana, USA (left) and the 8 mtpa or greater Bear Head LNG Project, in Richmond County, Nova Scotia, Canada (right)

June 2016 Quarterly Highlights and Appendix 4C

A Message from the Managing Director and Chief Executive Officer

Liquefied Natural Gas Limited's (LNGL or the Company) focus continues to be threefold: complete marketing of Magnolia LNG's offtake capacity to progress this project through financing and into construction; finalize Bear Head LNG regulatory permitting, engineering, and the marketing of liquefaction tolling capacity; and preserving our existing liquidity through effective cash management. The LNGL executives and staff are committed to delivering these key objectives.

The Company's total cash position as at 30 June 2016 was A$71.4 million and there is no debt.

The LNG industry is currently challenged by an LNG supply / demand imbalance. However, the Company's business model of mid‐scale LNG export projects, using our wholly owned patented OSMR® liquefaction process technology, positions the Company for long‐term global success due, in part, to our industry leading low cost solutions.

I look forward to meeting our shareholders who are able to attend the presentations this week in Sydney (25th July), Melbourne (27th July), and Perth (28th July), which we have highlighted in an ASX release on 6 July. If you have any queries, please contact our Perth office on (08) 9366 3700.

Yours sincerely,

Gregory M. Vesey, Managing Director and Chief Executive Officer

Liquefied Natural Gas Limited

ASX Code: LNG

OTC ADR: LNGLY

ABN: 19 101 676 779 CONTACT DETAILS

PERTH HOUSTON

First Floor, 1001 McKinney Street

10 Ord Street, Suite 600 West Perth 6005, Houston, TX 77002 Western Australia USA

Tel: +61(0)8 9366 3700 Tel: +1 713 815 6900 Fax: +61(0)8 9366 3799 Fax: +1 713 815 6905

Email: LNG@LNGLimited.com.au Website: www.lnglimited.com.au

BOARD OF DIRECTORS

Richard Jonathan Beresford Chairman Gregory M Vesey

Managing Director and Chief Executive Officer Fletcher Maurice Brand

Executive Director Leeanne Kay Bond Non‐Executive Director Paul J. Cavicchi Non‐Executive Director

Shares on Issue	503,977,606
Performance Rights	16,582,858
Unlisted Options on Issue	1,759,000
ADRs on Issue	2,951,949

D. Michael Steuert Non‐Executive Director Philip D. Moeller Non‐Executive Director ISSUED CAPITAL as at 30th June 2016

SUBSTANTIAL SHAREHOLDERS as at 30th June '16

Top 20 Shareholders	55.5%
North American	48.0%
− Baupost Group, LLC	12.4%
− Valinor Management, LLC	8.3%
Directors & Management	2.0%

1

QUARTER HIGHLIGHTS

Magnolia LNG:

• Magnolia LNG received its United States Federal Energy Regulatory Commission (FERC) Order to site, construct, and operate facilities to liquefy and export domestically produced natural gas from the LNG export terminal

• The Louisiana Department of Environmental Quality (LDEQ) approved the air permit for the Magnolia LNG project

• FERC also authorised the Kinder Morgan Louisiana Pipeline LLC (KMLP Pipeline) to install compression and other related facilities on the KMLP Pipeline, facilitating the transportation of full feed gas volumes to the Magnolia LNG project

• Magnolia LNG and the KSJV (a joint venture between KBR and SKE&C, led by KBR) agreed to extend the validity period of the signed engineering, procurement, and construction (EPC) contract price through 31 December 2016

  Bear Head LNG:

• Bear Head LNG received Governor in Council approval for a licence to import natural gas from the United States and a licence to export LNG from Bear Head LNG's project site

• In early July 2016, Nova Scotia Environment (NSE) approved Bear Head LNG's Greenhouse Gas (GHG) Management Plan for its liquefied natural gas facility on the Strait of Canso in Richmond County, Nova Scotia

  Corporate:

• Appointments of a new Managing Director and Chief Executive Officer, Mr Greg Vesey, and Mr Maurice Brand as an Executive Director

  Share movements:

• On 22 June 2016, 250,000 ordinary shares were issued on the exercise of options on 21 June 2016, a further 250,000 ordinary shares were issued on the exercise of options on 28 June 2016

• At the date of this report, there are 1,759,000 options outstanding, having option expiration dates of 8 July 2016 (759,000 options with strike prices ranging from A$0.24 to A$0.28) and 20 December 2016 (1,000,000 options with a strike price of A$0.465)

  Financial Position:

• During the June quarter 2016, net operating cash outflow was A$16.0 million, which compares with the March quarter 2016 figure of A$29.6 million. Management expects net cash outflows to continue to trend lower reflecting execution of the Company's cost management strategy

• LNGL's total cash balance as at 30 June 2016 was A$71.4 million, which compares to A$85.8 million as at 31 March 2016. The Company has no debt

  For further information contact:

  Mr. Greg Vesey Managing Director and CEO LNG Limited +1 713 815 6900 Mr. Maurice Brand Executive Director LNG Limited +61 8 9366 3700 Mr. Mike Mott Chief Financial Officer LNG Limited +1 713 815 6909

  ABOUT LIQUEFIED NATURAL GAS LIMITED

  LNGL is an ASX listed company (Code: LNG and OTC ADR: LNGLY) whose portfolio consists of 100% ownership of the following companies:

• Magnolia LNG LLC (Magnolia LNG), a US‐based subsidiary, which is developing an 8 mtpa or greater LNG export terminal, in the Port of Lake Charles, Louisiana, USA;

• Bear Head LNG Corporation Inc. (Bear Head LNG), a Canadian based subsidiary, which is developing an 8 ‐ 12 mtpa LNG export terminal in Richmond County, Nova Scotia, Canada with potential for further expansion;

• Bear Paw Pipeline Corporation Inc. (Bear Paw), which is proposing to construct and operate a 62.5 km gas pipeline lateral to connect gas supply to Bear Head LNG;

• Gladstone LNG Pty Ltd, a subsidiary which plans to develop the 3.5 mtpa Fisherman's Landing LNG (FLLNG) project at the Port of Gladstone in Queensland, Australia; and

• LNG Technology Pty Ltd, a subsidiary which owns and develops the Company's OSMR® LNG liquefaction process, a mid‐scale LNG business model that plans to deliver lower capital and operating costs, faster construction, and improved efficiency, relative to larger traditional LNG projects.

Liquefied Natural Gas Limited

Level 1, 10 Ord Street, West Perth WA 6005 Telephone: +61 (0)8 9366 3700 Facsimile: +61 (08) 9366 3799

Email: LNG@LNGLimited.com.au Website: www.LNGLimited.com.au

Disclaimer

Forward‐looking statements may be set out within this correspondence. Such statements are only predictions, and actual events or results may differ materially. Please refer to our forward‐looking statement disclosure contained on our website at www.LNGLimited.com.au and to the Company's Annual Report and Accounts for a discussion of important factors, which could cause actual results to differ from these forward‐ looking statements. The Company does not undertake any obligation to update publicly, or revise, forward‐looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Name of entity

Liquefied Natural Gas Limited

Rule 4.7B

ABN Quarter ended ("current

quarter")

19 101 676 779

30 June 2016

Current quarter $A'000	Year to date (12 months) $A'000
247 (6,542) (37) (8,287) (1) (1,570) ‐ 105 ‐ ‐ ‐	625 (22,410) (175) (89,329) (3) (6,699) ‐ 620 (1) ‐ ‐
(16,085)	(117,372)

Consolidated statement of cash flows Cash flows related to operating activities