ENEGEX LIMITED — Interim / Quarterly Report 2019

Jan 30, 2020

==> picture [163 x 42] intentionally omitted <==

Level 21, 500 Collins Street Melbourne Victoria 3000 Australia Tel: (+61 3) 8610 4700 Fax: (+61 3) 8610 4799 Email: admin@enegex.com.au

QUARTERLY ACTIVITY REPORT

31 December 2019

Kimberley Basin Exploration Licences

Enegex Ltd (ASX:ENX) has applications for two exploration licenses in the eastern margin of the Kimberley Basin of Western Australia (Figure 1), an area it has identified as offering prospectivity for Vanadium, Cobalt-Nickel, PGE and Fluorite mineralisation.

==> picture [453 x 415] intentionally omitted <==

Figure 1 Enegex Application Areas shown on regional geology

The geology of the tenements has been mapped as “Hart Dolerite”, a regionally extensive Proterozoic sill complex which has historically not been considered prospective. The tenement areas have been the subject of only limited exploration, focused on gold and diamonds (Figure 2).

==> picture [447 x 474] intentionally omitted <==

Figure 2: Historical Exploration in and around Enegex Application Areas shown on regional magnetics (reduced to pole first vertical derivative)

Enegex has identified recent advances in geological understanding that alter the prospectivity of the Hart Dolerite:

• Mapping and exploration of the Speewah Dome, immediately to the north of the Enegex tenement areas, has identified that the Hart Dolerite comprises a layered intrusive suite of rocks (Intrusive Suite), and that the prospective part of the Intrusive Suite is the Disseminated Magnetite Gabbro which hosts the Speerwah Dome Vanadium Deposit (adjacent to the Enegex application area). Disseminated gold and copper also identified in the sulphides of the Intrusive Suite indicate potential for reef-type PGE mineralization in the upper, differentiated, magnetite-rich parts of the layered intrusion.

Quarterly Activities Report for the quarter ended 31 December 2019

Page 2

• Regolith sampling by Geological Survey WA (GSWA) has identified high cobalt and coincident high nickel anomalies in Hart Dolerite, indicating prospective fertile host rocks for these minerals within the Suite.

• A later epithermal event has been identified in the Hart Dolerite in the Speewah area with carbonate and epithermal fluorite overprinting the dolerite. Fluoride is currently being investigated as a potential replacement for lithium batteries.

The limited historical exploration in the Enegex application areas has not determined which units of the Intrusive Suite are exposed. Thus, following grant of exploration licenses, Enegex intends to conduct exploration activities to determine the presence or otherwise of prospective units within the tenement area.

The grant process for the tenements progressed during the quarter including engagement with pastoral lease holders and native title stakeholders.

Other Mineral Resources Opportunities

Enegex is open to other natural resource opportunities and continues to evaluate opportunities to generate shareholder value including in the areas of:

• The exploration for a range of strategic energy, transmission and storage minerals

• Energy storage technologies

• Alternative and renewable energy sources

• Natural gas for domestic consumption

• The exploration for precious metals

By Order of the Board

==> picture [110 x 34] intentionally omitted <==

R J Wright Company Secretary Melbourne, Australia 31 January 2020

Quarterly Activities Report for the quarter ended 31 December 2019

Page 3

Additional Information Required by Listing Rules 5.3.3 and 5.4.3

Mining Tenements held/applied for at the end of the quarter and their location

Tenement	Enegex interest	Tenement status
Western Australia(Kimberley Region)
E 80/5354	100%	Application
E 80/5355	100%	Application

Tenements acquired during the quarter and their location

Nil.

Tenements disposed of during the quarter and their location

Nil.

Beneficial percentage interests held in farm-in or farm-out agreements at the end of the Quarter: Nil.

Quarterly Activities Report for the quarter ended 31 December 2019

Page 4

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

ENEGEX LIMITED ABN

28 160 818 986

Quarter ended (“current quarter”)

31 December 2019

==> picture [428 x 285] intentionally omitted <==

----- Start of picture text -----

Consolidated statement of cash flows Current quarter Year to date (6
$A’000 months)
$A’000
1. Cash flows from operating activities
1.1 Receipts from customers
1.2 Payments for
(a) exploration & evaluation
(b) development
(c) production
(d) staff costs
(e) administration and corporate costs (13) (63)
1.3 Dividends received (see note 3)
1.4 Interest received 1 1
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Research and development refunds
1.8 Other (provide details if material)
1.9 Net cash used in operating activities (12) (62)
----- End of picture text -----

2. Cash flows from investing activities

• 2.1 Payments to acquire:

• (a) property, plant and equipment

• (b) tenements (see item 10)

• (c) investments

• (d) other non-current assets

• See chapter 19 for defined terms 1 September 2016

Page 1

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

==> picture [428 x 633] intentionally omitted <==

----- Start of picture text -----

Consolidated statement of cash flows Current quarter Year to date (6
$A’000 months)
$A’000
2.2 Proceeds from the disposal of:
(a) property, plant and equipment
(b) tenements (see item 10)
(c) investments
(d) other non-current assets
2.3 Cash flows from loans to other entities
2.4 Dividends received (see note 3)
2.5 Other (provide details if material)
2.6 Net cash used in investing activities
3. Cash flows from financing activities
3.1 Proceeds from issues of shares
3.2 Proceeds from issue of convertible notes
3.3 Proceeds from exercise of share options
3.4 Transaction costs related to issues of
shares, convertible notes or options
3.5 Proceeds from borrowings
3.6 Repayment of borrowings
3.7 Transaction costs related to loans and
borrowings
3.8 Dividends paid
3.9 Other (provide details if material)
3.10 Net cash used in financing activities
4. Net increase / (decrease) in cash and
cash equivalents for the period
4.1 Cash and cash equivalents at beginning of
period 90 140
4.2 Net cash used in operating activities (12) (62)
(item 1.9 above)
4.3 Net cash used in investing activities
(item 2.6 above)
4.4 Net cash used in financing activities
(item 3.10 above)
4.5 Effect of movement in exchange rates on
cash held
4.6 Cash and cash equivalents at end of 78 78
period
----- End of picture text -----

• See chapter 19 for defined terms 1 September 2016

Page 2

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

==> picture [428 x 444] intentionally omitted <==

----- Start of picture text -----

5. Reconciliation of cash and cash Current quarter Previous quarter
equivalents $A’000 $A’000
at the end of the quarter (as shown in the
consolidated statement of cash flows) to the
related items in the accounts
5.1 Bank balances 78 32
5.2 Call deposits - 58
5.3 Bank overdrafts
5.4 Other (provide details)
5.5 Cash and cash equivalents at end of 78 90
quarter (should equal item 4.6 above)
6. Payments to directors of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to these parties included in item 1.2
6.2 Aggregate amount of cash flow from loans to these parties included
in item 2.3
6.3 Include below any explanation necessary to understand the transactions included in
items 6.1 and 6.2
7. Payments to related entities of the entity and their Current quarter
associates $A'000
7.1 Aggregate amount of payments to these parties included in item 1.2 1
7.2 Aggregate amount of cash flow from loans to these parties included
in item 2.3
7.3 Include below any explanation necessary to understand the transactions included in
items 7.1 and 7.2
----- End of picture text -----

==> picture [428 x 46] intentionally omitted <==

• See chapter 19 for defined terms 1 September 2016

Page 3

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

8.	Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000
8.1	Loan facilities
8.2	Credit standby arrangements
8.3	Other (please specify)
8.4	Include below a description of each facility above, including the lender, interest rate and
	whether it is secured or unsecured. If any additional facilities have been entered into or are
	proposed to be entered into after quarter end, include details of those facilities as well.

==> picture [428 x 45] intentionally omitted <==

==> picture [428 x 134] intentionally omitted <==

----- Start of picture text -----

9. Estimated cash outflows for next quarter $A’000
9.1 Exploration and evaluation -
9.2 Development
9.3 Production
9.4 Staff costs
9.5 Administration and corporate costs 20
9.6 Other (provide details if material)
9.7 Total estimated cash outflows 20
----- End of picture text -----

==> picture [428 x 160] intentionally omitted <==

----- Start of picture text -----

10. Changes in Tenement Nature of interest Interest at Interest
tenements reference beginning at end of
(items 2.1(b) and and of quarter quarter
2.2(b) above) location
10.1 Interests in mining See Activity Report
tenements and
petroleum tenements
lapsed, relinquished
or reduced
10.2 Interests in mining See Activity Report
tenements and
petroleum tenements
acquired or increased
----- End of picture text -----

• See chapter 19 for defined terms 1 September 2016

Page 4

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

==> picture [103 x 31] intentionally omitted <==

Sign here: ........................................................... Date: 31 January 2020 (Company Secretary)

Print name R.J. WRIGHT

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. See chapter 19 for defined terms 1 September 2016

Page 5