ADX Energy Ltd. announced that a permit has been issued by the Mining Authority on behalf of the ministry of finance of the Republic of Austria (Bundesministerium für Finanzen) (BMF) for the drilling of the Welchau-1 well in ADX-AT-II licence in Upper Austria (Drilling Permit). The Drilling Permit follows the review of extensive technical, legal and environmental documentation together with expert opinions and a public hearing on the 28th of June 2023 at which no major objections were received. The Drilling Permit allows ADX to drill and test the Welchau-1 well and undertake a longer-term production test production if required.

The Drilling Permit is tied to two specific rig types including a drilling rig and a work over rig provided by drilling contractor RED Drilling & Services GmbH (RED) with whom ADX has a rig services contract in place. Under the terms of the Drilling Permit, the Welchau-1 well can be drilled any time during the term of the exploration license providing it is drilled during a period between 1 October to 31 March (winter period). The final stage of the permitting process is the receipt of an environmental clearance which is based on an independent expert?s environmental report (Environmental Clearance).

The clearance process is based on the evaluation of a report by a government nominated expert which has been completed and submitted to the local Upper Austrian governing body. The process will include a stakeholder hearing period similar to drilling permit process. Drilling operations are expected to commence during the fourth quarter of 2023 after receipt of the Environmental Clearance.

The success case drilling program is expected to take approximately 39 days. Operational Readiness ADX has purchased all the necessary long lead items to drill the Welchau-1 well. The drilling of the well will be under an existing rig services contract with RED.

ADX used the RED drilling rig to drill the Company?s first exploration well in Austria at Anshof-3. Anshof-3 was drilled without any lost time safety incidents and within budget. The drilling services and other contracted services will be almost exclusively provided by highly trained local staff from Upper Austria as was the case for the Anshof-3 well. ADX has endeavoured to maximise local content where there is an excellent past record of safety, environmental protection and reliable project execution.

ADX intends to finalise a drilling rig slot with RED following granting of the Environmental Clearance. MCF Energy Ltd.?s Economic Participation Canadian TSX Venture Exchange (?TSXV?) listed MCF Energy Ltd., under an energy investment agreement, has agreed to fund 50% of the cost of the Welchau-1 well to earn a 20% economic interest in the Welchau Investment Area. ADX retains an 80% economic interest in the Welchau Investment Area.