Buru Energy Limited (Buru or the Company) (ASX: BRU) is pleased to announce a successful share placement, to raise a total of approximately $5 million (Placement).

The Company will also undertake a Share Purchase Plan (SPP) for existing shareholders. The placement was made to a number of Buru's major shareholders as well as new institutional and professional investors who are strongly supportive of the Company's progress and direction in appraising and providing a commercialisation pathway for the Rafael gas and condensate discovery. The Company is also providing its wider shareholder base with the opportunity to participate in the raising at the same price as the Placement through the SPP. The funds will be used to ensure that preparations for the planned 2024 appraisal drilling program maintain their current momentum and the Company is fully funded through its current program of partner selection and commercialisation activity.

Commenting on the capital raising, Buru's CEO Thomas Nador said: 'The strong support of our major shareholders and new institutional investors for this capital raising reflects the progress we have made on the delivery of our structured program of appraisal, and definition of commercialisation pathways of our very exciting Rafael discovery. We have demonstrated that there is a pathway to commercialisation for all realistic resource appraisal outcomes. We are also systematically progressing our on-ground appraisal activity, having recently completed the Rafael 3D seismic acquisition on time and on budget with preliminary results expected to be available in late November. The development of the Rafael conventional gas accumulation can provide much needed reliable energy for Northern Australia with a materially reduced carbon footprint compared to current systems. There is also the potential for clean ammonia production using low CO2 Rafael gas and utilising the significant carbon storage capacity identified by Buru in the Canning Basin proximate to the Rafael discovery. We are equally excited about our large exploration acreage applications for natural hydrogen and helium via Buru's 2H Resources subsidiary, noting the highly encouraging recent initial success of our neighbours in South Australia. We are also pleased to provide our wider shareholder base with the opportunity to continue to participate in our journey through the SPP and look forward to their continued support.'

Use of Proceeds

The funds raised will supplement Buru's existing cash reserves and provide support for ongoing appraisal and development activities including ensuring that Long Lead Items required for the planned 2024 appraisal drilling program are available. Lead times for procurement of oilfield equipment can be up to 12 months and to ensure these are available for planned drilling programs, commitments are required in a timely fashion. The Company is confident that the commitments for Long Lead Items facilitated by this capital raising will ensure that the necessary well equipment is available as required for the 2024 drilling program. The remainder of the funds from this capital raising will be applied towards costs associated with drilling program planning as well as regulatory and environmental approvals, ongoing native title negotiations and community engagement as part of progressing the appraisal and development planning of the Rafeal discovery, as well as for general working capital purposes.

Placement Details

The Placement price of $0.115 per share represents a 14.81% discount to the closing Buru trading price on 9 November 2023 and a 19.55% discount to the 10-day VWAP up to that last trading date prior to this announcement. The Placement shares (totaling 43,308,700) are expected to be issued on 20 November 2023 under the Company's placement capacity pursuant to ASX Listing Rule 7.1

Contact:

Tel: +61 8 9215 1800

Email: info@buruenergy.com

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