AJ LUCAS GROUP LIMITED — AGM Information 2021

Nov 10, 2021

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AGM PRESENTATION FINANCIAL YEAR 2021

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Disclaimer

This AGM presentation has been prepared by AJ Lucas Group Limited (“the Company”). Information in this AGM presentation is of a general nature only and should be read in conjunction with the Company’s other periodic and continuous disclosure announcements to the ASX, which are available at: www.lucas.com.au and www.asx.com.au.

Statements contained in this AGM presentation, particularly those regarding the possible or assumed future performance, revenue, costs, returns, levels of debt, potential growth of AJ Lucas Group Limited (“the Company”) or of Lucas Drilling Pty Limited (“LDS”), a wholly owned subsidiary of AJ Lucas Group Limited, Australian Coal Industry costs or operating projections or other trend projections, are or may be forward looking statements. Such statements relate to future events and expectations and as such involve known and unknown risks and uncertainties. The actual results, actions and developments may differ materially from those expressed or implied by these forward-looking statements depending on a variety of factors.

The AGM presentation or certain financial information may not be compliant with financial captions in the primary financial statements prepared under International Financial Reporting Standards (IFRS). However, AJ Lucas Group Limited’s financial statements comply with IFRS. This presentation may include certain non-IFRS performance measures including EBITDA, Underlying EBITDA Gross Debt, Net Debt etc. These measures are used internally by management to assess the performance of the business. Non-IFRS measures have not been subject to audit or review and should not be considered as an alternative to an IFRS measure of profitability, financial performance or liquidity. To the maximum extent permitted by law, the Company and its directors and advisers of both give no warranty, representation or guarantee as to the accuracy, completeness or reliability of the information contained in this AGM presentation. Further, none of the Company, it officers, agents or employees of accepts, to the extent permitted by law, any liability for any loss, claim, damages, costs or expenses arising from the use of this AGM presentation or its contents or otherwise arising out of, or in connection with it. Any recipient of this AGM presentation should independently satisfy themselves as to the accuracy of all information contained herein.

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Online Attendees – Audio Question Process

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Online Attendees – Text Question Process

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Online Attendees – Voting Process

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Andrew Purcell Independent Director and Chairman

Austen Perrin Non-executive Director

• Chairman of the Audit and Risk Committee

Julian Ball Director

• Chairman of the Human Resources and Nomination Committee

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Introductions

Brett Tredinnick Group CEO and Executive Director

Francis Egan Executive Director, UK CEO

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AGENDA

Chairman's Address Group CEO Address – Brett Tredinnick Q&A

Formal Business Agenda:

1. Receive and Consider financial statements and reports

2. Resolution 1:

• Remuneration Report

3. Resolutions 2-3: - Director re-elections

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Chairman’s Address – Andrew Purcell

• Successful measures to manage impact of COVID19

• Metallurgical coal price is a key driver of demand for our drilling services

• Demand for Australian Metallurgical coal is expected to remain high despite Australia / China trade tensions

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Chairman’s Address – Andrew Purcell

• Continue to engage with UK regulator

• Energy transition to low carbon economies underway

• Impacting on domestic and industry energy prices

• Gas is acknowledged as a key transitional energy

• UK Gas prices at record highs driven by demand from Asia

• Abundant amount of clean gas available onshore in UK that cannot be explored and developed as a result of the current moratorium

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CEO Address - BRETT TREDINNICK

• Welcome

• 2 Business Units

• Group Financial Performance

• Achievements

• UK operations

• Priorities for current year

• Loyal workforce and customer base

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Cash flows highlights

• Improvement in cash from operating activities

• Driven primarily by reduced finance costs

• Cash generated from operating activities in FY21 was used to repay debt and invest in Australian operations

Financial performance highlights

• Operations delays by Key Customers caused revenue to fall to $111m

• Strong EBITDA maintained despite revenue decrease

• Significant Group EBITDA margin improvement

Financial results - Highlights

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Achievements in Australian O erations p

• Investing in people through

• Leadership development

• Refinement and expansion of operational excellence program

• High performing teams' program

• Investing in expanding Directional Drilling (“DD”) capabilities

• Reduces number of vertical wells leading

• Saves costs to our customers

Traditional degasification of coal mines requires multiple vertical wells and surface footprints.

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• Reduced environmental footprint

• Industry leading safety

• Total Recordable Injury Frequency Rate of 0 on customer sites

• No LTI’s since 2013

DD allows access to more reservoir significantly reducing number of wells and surface footprint

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• UK Government & Climate Change committee recognize that gas will be a key component of UK “net zero” target

• UK Govt moratorium on hydraulic fracturing in England announced in November 2019

• Means that development of the relatively clean home-grown gas cannot currently progress

• Gas being imported from Russia and Qatar which is both expensive and highly carbon intensive

UK Operations

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• These policy settings have contributed to unprecedently high energy prices in the UK

• This is likely to become more intense in the northern winter

• We continue to try an engage with the regulator on this complex situation whilst also assessing other opportunities for existing sites such as geothermal and battery storage.

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• Metallurgical coal market is a key driver of our Australian Operations

• Metallurgical coal is currently at record levels despite trade issues with China

• Positive indictors underpin forecast

• Queensland has some of the highest quality Metallurgical coal globally

• Strong Order book

Australian Operations outlook

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QUESTIONS

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FORMAL BUSINESS

Item 1

Receive and consider Directors and Financial reports

There is no vote on this item

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FORMAL BUSINESS

Resolution 1: Adoption of Remuneration Re ort p

Item 2

PROXY VOTE TOTALS	PROXY VOTE TOTALS	PROXY VOTE TOTALS	PROXY VOTE TOTALS
Vote Type	No. Voted	% Voted	% of all securities
For	834,242,026	97.65	69.74
Against	19,608,174	2.30	1.64
Open	478,251	0.05	0.04
Abstain / excluded	17,399,662	n/a	1.45

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FORMAL BUSINESS

Resolution 2:

Item 3

Re-election of Andrew Purcell

PROXY VOTE TOTALS	PROXY VOTE TOTALS	PROXY VOTE TOTALS	PROXY VOTE TOTALS
Vote Type	No. Voted	% Voted	% of all securities
For	867,550,638	99.79	72.52
Against	1,390,425	0.16	0.12
Open	478,251	0.05	0.04
Abstain / excluded	2,308,799	n/a	0.19

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FORMAL BUSINESS

Resolution 3: Re-election of Julian Ball

Item 3

PROXY VOTE TOTALS	PROXY VOTE TOTALS	PROXY VOTE TOTALS	PROXY VOTE TOTALS
Vote Type	No. Voted	% Voted	% of all securities
For	867,550,313	99.79	72.52
Against	1,390,425	0.16	0.12
Open	478,251	0.05	0.04
Abstain / excluded	2,309,124	n/a	0.19

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