Botala Energy Ltd. announced that it has received environmental approval to proceed with commercial development of its Serowe Coal Bed Methane (CBM) Project (called Project Naledi) near Serowe, complete with a ~100km pipeline from the wellfield to its proposed Leupane Energy Hub and Industrial Park near Palapye. The approval was granted on schedule and without public objections following appraisal of Botala's Environmental Impact Assessment (EIA) which included comprehensive community consultations. As operator of the Naledi CBM Project, Botala plans to develop the CBM well field.

It is in advanced stages of requesting conversion of some of its prospecting licences to Mining Licences following successful CBM exploration. Development will consist of: Well heads and gas gathering network of subsurface pipes connected to the Central Processing Facility within the wellfield for removal of water and impurities. Gas supply to the proposed 20MW gas/solar hybrid pilot in Serowe, currently under advanced planning.

Gas being compressed into an export pipeline to the proposed Leupane Energy hub and Industrial Park. Network of infield pipelines and service tracks. This environmental approval is a significant milestone.

Two other EIAs are in their final assessment processes, namely: developments of the Serowe Energy Hub and the Leupane Energy Hub and industrial Park. The EIAs for these downstream projects are out for public assessment which is the final stage before awarding approval. Project Pitse - Update.

Operations have recommenced at project Pitse with a coring rig set to mobilise to site during the week commencing 22 January. Cores will be taken from the three intersected seams in the fifth and final well, Serowe-3.4, of this 5-well pilot cluster, for desorption testing in field laboratory. Once the cores have been retrieved, the four wells will be completed.

Surface and downhole equipment from Brisbane has started to arrive in Botswana with the final containers due to land in Durban within the next 2 weeks. Exploration Programme. Ground mag netics and AMT lines have commenced for a 3 'slim-hole' exploration drilling campaign, with the aim of increasing geological understanding and lithology in large step-outs from the Pitse area.

The wells are not designed for production. Current operations are in: Mining Licence Application. Application for the conversion of Prospecting Licences 356, 400 and 19 to Mining Licences is in progress.

The granted environmental approval is a key consideration in approving this conversion, as is about to be completed Feasibility Study. Botala anticipates submitting its application for a Mining Licence in January 2024.