Hexagon completes WAH2 scoping study. Highlights: Scoping study completed in December 2022 on time and on budget. Study confirms WAH2 project concept, identifies opportunities to reduce unit costs, and provides appropriate focus for Preliminary Feasibility Study (PFS).

PFS on track for completion Second Quarter 2023. Targeting FEED entry Fourth Quarter 2023 and FID Fourth Quarter 2024, subject to results of PFS. WAH2 Project Scoping Study Results: The Hexagon team completed the anticipated WAH2 low-carbon hydrogen project scoping study on time and on budget prior to year-end.

The study considered the different elements required to deliver such a project and supported progression to a Preliminary Feasibility Study. Specific areas of analysis included: Hydrogen production methodology; Energy carrier solution; Site location and availability of land; Project scaling and phasing of production; Gas supply; Carbon capture and storage; Production technology alternatives; and Identification of enhancements to minimise capital and operating costs. Hydrogen production methodology: Competitive, low-carbon, low-risk hydrogen is to be delivered by using proven technology to reform natural gas feedstock, carbon capture and storage (CCS) in depleted gas reservoirs and harnessing northern Western Australia's renewable energy potential.

Energy carrier: The produced hydrogen will be converted to low-carbon ammonia as the most appropriate energy carrier. This offers reduced processing and transportation costs and greater energy- efficiency than the alternatives of liquid hydrogen or liquid organic hydrogen carriers - and aligns with customers' need for ammonia. Site location: Hexagon has identified its preferred site for WAH2 and has applied to the WA Government for a long-term lease over the site.

The site is in an existing Strategic Industrial Area in northern Western Australia. It is proximal to services, with established export routes and an existing infrastructure corridor. It is well- placed to access key Asian markets such as Japan and South Korea and to provide domestic supply to Australia.

Project scaling and phasing of production: Development of the WAH2 project will be phased to manage risks and align with market development. Indicatively, Phase 1 will produce ~250 kT of ammonia per annum, increasing to ~800 kT per annum in Phase 2. Gas Supply: WAH2's feed-gas requirement could be met by the market. There are several potential suppliers with access to existing distribution infrastructure and Phase 1 of the project would consume only ~2% of Western Australian's forecast daily gas supply (Base Case, WA GSOO 2022).

Carbon capture and storage: Several credible CO2 sequestration alternatives are being developed proximal to WAH2. Greenhouse gas assessment permits have been awarded to joint ventures operated by Santos (G-9-AP) and Woodside (G-10-AP), and the Australian Gas Infrastructure Group is investigating the potential to use its wholly owned Tubridgi asset for CO2 sequestration. Production technology: The choice of specific hydrogen production technology drives tangible differences in plant costs, power requirements and CO2 emissions.

Steam methane reforming, autothermal reforming and gas heated reforming are all under consideration. Project enhancement opportunities: Opportunities have been identified to reduce unit costs and leverage economies of scale. These include: · Optimal technology choice and sizing of Phase 1 of the WAH2 project; · Potential access to multi-user infrastructure including utilities import, product export and CO2 transmission; and An optimised power solution.

Next steps: The focus of the Hexagon team has now turned to completing the WAH2 PFS in Second Quarter 2023 and, in parallel: · Progressing commercial discussions regarding gas supply, utilities, CO2 sequestration and ammonia offtake; and · Securing an Option to Lease from the WA Government over Hexagon's preferred project site.