Elixir Energy Limited announced the achievement of various milestones towards delivering Mongolia's first gas fired power project, using coal bed methane (CBM) from its 100% owned Nomgon IX CBM PSC. Critically, an independent Contingent Resources report - the Company's and the Country's first - provides growing confidence in gas supplies for the project. Australia's own history of CBM (known as coal seam gas - CSG - in Australia) development has had very close synergies with modular gas fired power projects - that can be expanded as gas resources are proven up. Numerous projects have been built in Queensland (and even New South Wales) over the last fifteen years ago, by parties including QGC, Santos, Arrow Energy, Eastern Star Gas and Origin Energy, which facilitated their initial entry into CBM development and production. The multiple benefits of these projects included: providing early cash-flows; utilizing raw gas that does not need processing; building confidence in gas deliverability and reserves; attracting larger energy sector partners; delivering discernible local community benefits; improving grid reliability; producing low carbon power; and; providing firm power support to the grid that facilitates the entry of more renewables. Elixir announced that it has executed a Memorandum of Understanding (MOU) with the Ministry of Energy, which provides a framework under which the parties will effectively cooperate to investigate and seek to develop a gas fired power project in the South Gobi region. Elixir expects that if a first project proves viable and goes ahead, there will be considerable further interest from the Government - and the private sector - in its expansion and/or similar projects across the very large PSC area. Elixir is also pleased to announce that it has entered into an Agreement with Clarke Energy, a CBM to power engineering specialist company, to progress a feasibility study into this gas fired power project. Clarke Energy is an Australian head-quartered company that is a global leader in the engineering, procurement and construction (EPC) of Jenbacher gas engine based power station projects using CBM. Clarke is a wholly owned subsidiary of the US private company KOHLER Company. In Australia, Clarke has conducted the delivery of EPC work for over 24 separate CBM/coal mine methane based power projects, totalling around 300 MW of installed power using INNIO Jenbacher gas engines. In China, Clarke has also previously undertaken EPC work with various similar projects, totalling 61 MW. A comparative example highly relevant to Elixir comes from the early days of Australian CBM development in 2008, when Clarke Energy constructed the Wilga Park Power Station in New South Wales. This power station was built in stages, maximising pilot CBM gas as it became available. Clarke Energy initially performed the EPC work for the first stage 3 MW plant and expanded it to 12 MW in 2011, which has since operated smoothly for 10 years. In more recent times, this power station has been further expanded to 18 MW, with the capacity and design for further growth. Similar to projects like Wilga Park, Elixir plans for this initial power station project to be around 10 MW in initial size - reflecting factors such as the current local electricity transmission grid take-away capacity and an overall measured approach to what would be the a first of its kind development in the country. The project would be expandable in nature as factors such as takeaway capacity increased. In order to, inter alia, provide confidence in gas supplies for the potential third party financiers for the project, Elixir commissioned an initial independent Contingent Resources estimate. The Contingent Resources estimate, specifically around the work undertaken to date in the Nomgon sub-basin area, was undertaken by ERC Equipoise Pte Ltd. and the results are summarized in the table below. The Contingent Resources have been booked only for the initial selected gas supply area for this power project - the Western part of the Nomgon sub-basin in which the Company drilled a number of wells in 2020. The estimation of the Contingent Resources is based on core-drilling, wireline logs and subsequent scientific analysis. Specific analysis includes Wireline Petrophysics, Coal Gas Desorption Analysis, Coal Adsorption Analysis, Injectivity Fall Off Testing, Chromatographic Gas Analysis and Coal Proximate Analysis, which have all been incorporated in the resource estimations. The key contingency is the ability to flow gas at commercial rates, and the finalization of and financing of a development plan to feed the proposed power generation project. Elixir is planning production testing in 2021 to establish stabilized water (and potentially gas) flowrates. This will be followed in 2022 by a longer term pilot program at Nomgon. The obtained data and information will be used to finalise the Development Plan. Although the Development Plan is in its infancy at the present time, it is anticipated that an area of 13km2 will be developed for the Power Project over its multi-decade life, and that the mid case number for wells could be between 36 and 107, depending of the style and type of development (for the 2C resources).