1414 DEGREES LIMITED — Capital/Financing Update 2020

Jan 20, 2020

Tuesday 21 January 2020

ASX:14D

GAS-TESS PROJECT STATUS UPDATE

• Thermal energy storage system in good condition

• Turbine is in good condition

• Working with manufacturer to resolve leak in external heat exchanger

• No anticipated impact on business case

1414 Degrees (ASX:14D) has progressed investigations into the cause of lower electricity output from the GAS-TESS pilot at the Glenelg Wastewater Treatment Plant. The thermal energy storage system (TESS) and turbine are in good condition. An internal leak has been identified in the external heat exchanger. Since the specification of this pilot project includes identifying operational limits for components, we don’t anticipate any significant impact on the progress of our business case with SA Water.

Following tests on January 8 in which electricity generation from the GAS-TESS was below performance targets, our engineers have identified the cause as a leak in the external heat exchanger, which resulted in reduced energy to the turbine.

Our engineers, in close co-operation with the heat exchanger manufacturer, are conducting further detailed inspections, ahead of remediation works to repair the leak and mitigate any recurrence.

The TESS has been turned off to facilitate the inspections and repair works. Once complete, the heat exchanger will be checked by the manufacturer and the system restarted. This is expected to take place early in February.

FOR FURTHER INFORMATION PLEASE CONTACT:

Kevin Moriarty, Executive Chairman +61 8 8357 8273

ABOUT 1414 DEGREES LIMITED

1414 Degrees believes in a sustainable energy future, where energy is available to all, at all times. Its clean energy storage is set to reduce energy costs by increasing the efficiency of renewable generation and stabilising grid supply. The 1414 Degrees thermal energy storage system (TESS) is unlike any other energy storage system in the world.

1414 Degrees’ technology stores energy generated from electricity or gas and supplies both heat and electricity in the proportions required by consumers. It is unique in its combination of low cost, flexibility of location, scalability, and sustainability. Following the successful development of its commercial demonstrator, the Company is now in an early stage of product development and commercialisation.

For more information please visit www.1414degrees.com.au