ENERGY TECHNOLOGIES LIMITED — Capital/Financing Update 2021

Sep 20, 2021

Proposed issue of securities

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Update Summary

Entity name

ENERGY TECHNOLOGIES LIMITED

Announcement Type

Update to previous announcement

Date of this announcement

21/9/2021

Reason for update to a previous announcement Amend offer price on attaching option

Refer to next page for full details of the announcement

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Proposed issue of securities

Part 1 - Entity and announcement details

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1.1 Name of +Entity

ENERGY TECHNOLOGIES LIMITED

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

If the +securities are being offered under a +disclosure document or +PDS and are intended to be quoted on ASX, we also apply for quotation of all of the +securities that may be issued under the +disclosure document or +PDS on the terms set out in Appendix 2A of the ASX Listing Rules (on the understanding that once the final number of +securities issued under the +disclosure document or +PDS is known, in accordance with Listing Rule 3.10.3C, we will complete and lodge with ASX an Appendix 2A online form notifying ASX of their issue and applying for their quotation).

1.2 Registered Number Type Registration Number ABN 38002679469

1.3 ASX issuer code

EGY

1.4 The announcement is

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Update/amendment to previous announcement

1.4a Reason for update to a previous announcement

Amend offer price on attaching option

1.4b Date of previous announcement to this update

20/9/2021

1.5 Date of this announcement

21/9/2021

1.6 The Proposed issue is:

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A standard +pro rata issue (non-renounceable or renounceable)

1.6a The proposed standard +pro rata issue is:

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• Non-renounceable

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Part 3 - Details of proposed entitlement offer issue

Part 3A - Conditions

3A.1 Do any external approvals need to be obtained or other conditions satisfied before the entitlement offer can proceed on an unconditional basis? No

Part 3B - Offer details

Class or classes of +securities that will participate in the proposed issue and class or classes of +securities proposed to be issued

ASX +security code and description

EGY : ORDINARY FULLY PAID

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)? Existing class

Will the proposed issue of this If the entity has quoted company +security include an offer of options, do the terms entitle option attaching +securities? holders to participate on exercise? Yes No

Details of +securities proposed to be issued

ASX +security code and description EGY : ORDINARY FULLY PAID

ISIN Code (if Issuer is a foreign company and +securities are non CDIs)

ISIN Code for the entitlement or right to participate in a non-renounceable issue (if Issuer is foreign company and +securities are non CDIs)

Offer ratio (ratio to existing holdings at which the proposed +securities will be issued)

The quantity of additional +securities For a given quantity of +securities to be issued held 1,000 1,723

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What will be done with fractional Maximum number of +securities entitlements? proposed to be issued (subject to rounding) Fractions rounded up to the next 100,000,000 whole number

Offer price details for retail security holders

In what currency will the offer be made? AUD - Australian Dollar

What is the offer price per +security for the retail offer? AUD 0.11000

Oversubscription & Scale back details

Will individual +security holders be permitted to apply for more than their entitlement (i.e. to over-subscribe)?

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Yes

Describe the limits on over-subscription

The allocation of additional new shares will be subject to the availability of additional new shares and the allocation policy will be as directed by the Board. The Directors intend to allow the Lead Manager to place up to the entire shortfall within 3 months in accordance with ASX Listing Rule 7.2, Exception 3.

Will a scale back be applied if the offer is over-subscribed?

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Yes

Describe the scale back arrangements

At Directors discretion

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class?

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Yes

Attaching +Security

Is the proposed attaching security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional +securities in a class that is already quoted or recorded by ASX)? New class

Attaching +Security - New class (+securities in a class that is not yet quoted or recorded by ASX)

Details of attaching +securities proposed to be issued

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ISIN Code (if Issuer is a foreign company and +securities are non CDIs)

ISIN Code for the entitlement or right to participate in a non-renounceable issue (if Issuer is foreign company and +securities are non CDIs)

Have you received confirmation from ASX that the terms Will the entity be seeking quotation of the 'new' class of of the proposed +securities are appropriate and +securities on ASX? equitable under listing rule 6.1? Yes Yes ASX +security code +Security description New class-code to be confirmed Option expiring 31 October 2024

+Security type

Options

Offer ratio (ratio of attaching securities at which the new +securities will be issued)

The quantity of attaching +securities to be issued For a given quantity of the new +securities issued 1 4 What will be done with fractional entitlements? Maximum number of +securities proposed to be issued (subject to rounding) Fractions rounded up to the next whole number 25,000,000 Offer price details for retail security holders In what currency will the offer be made? What is the offer price per +security for the retail offer? AUD 0.00000 AUD - Australian Dollar

Oversubscription & Scale back details

Will individual +security holders be permitted to apply for more than their entitlement (i.e. to over-subscribe)? Yes

Describe the limits on over-subscription

The allocation of additional new shares will be subject to the availability of additional new shares and the allocation policy will be as directed by the Board. The Directors intend to allow the Lead Manager to place up to the entire shortfall within 3 months in accordance with ASX Listing Rule 7.2, Exception 3.

Will a scale back be applied if the offer is over-subscribed? Yes

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Describe the scale back arrangements

At Directors discretion

Will all the +securities issued in this class rank equally in all respects from their issue date?

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Yes

Options details

+Security currency

AUD - Australian Dollar

Exercise price Expiry date AUD 0.2000 31/10/2024

Details of the type of +security that will be issued if the option is exercised

EGY : ORDINARY FULLY PAID

Number of securities that will be issued if the option is exercised

One fully paid ordinary share (ASX: EGY)

Please provide a URL link for a document lodged with ASX setting out the material terms of the +securities proposed to be issued or provide the information by separate announcement.

Part 3C - Timetable

3C.1 +Record date

24/9/2021

3C.2 Ex date

23/9/2021

3C.4 Record date

24/9/2021

3C.5 Date on which offer documents will be sent to +security holders entitled to participate in the +pro rata issue

28/9/2021

3C.6 Offer closing date

7/10/2021

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3C.7 Last day to extend the offer closing date 4/10/2021 3C.9 Trading in new +securities commences on a deferred settlement basis 8/10/2021 3C.11 +Issue date and last day for entity to announce results of +pro rata issue 14/10/2021 3C.12 Date trading starts on a normal T+2 basis 15/10/2021 3C.13 First settlement date of trades conducted on a +deferred settlement basis and on a normal T+2 basis 19/10/2021 Part 3E - Fees and expenses 3E.1 Will there be a lead manager or broker to the proposed offer? Yes 3E.1a Who is the lead manager/broker? PAC Partners Securities Pty Ltd 3E.1b What fee, commission or other consideration is payable to them for acting as lead manager/broker? 1) PAC is being paid a 6% fee of which sub underwriting fees are being paid from the quantum. 2) 9 million options with the same terms as those offered under the Offer 3E.2 Is the proposed offer to be underwritten? Yes 3E.2a Who are the underwriter(s)? PAC Partners Securities Pty Ltd 3E.2b What is the extent of the underwriting (ie the amount or proportion of the offer that is underwritten)? 6,000,000 3E.2c What fees, commissions or other consideration are payable to them for acting as underwriter(s)? Refer 3E.1b above 3E.2d Please provide a summary of the significant events that could lead to the underwriting being terminated Refer to section 1.5 of the Prospectus lodged 3E.2e Is a party referred to in listing rule 10.11 underwriting or sub-underwriting the proposed offer? Yes 3E.2e (i) What is the name of that party? Matthew Driscoll, Director

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3E.2e (ii) What is the extent of their underwriting or sub-underwriting (ie the amount or proportion of the offer they have underwritten or sub-underwritten)?

200000

3E.2e (iii) What fee, commission or other consideration is payable to them for acting as underwriter or sub-underwriter?

0

3E.3 Will brokers who lodge acceptances or renunciations on behalf of eligible +security holders be paid a handling fee or commission? No

3E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed offer

Part 3F - Further Information

3F.1 The purpose(s) for which the entity intends to use the cash raised by the proposed issue

The funds from the Offer will be used to"

• 1) Implementation of the Silicone Line Machine as disclosed on 15 January 2021

• 2) Repay the outstanding debt obligations

• 3)Restructure, in part, the operating business; and

• 4)Provide working capital for growth

3F.2 Will holdings on different registers or subregisters be aggregated for the purposes of determining entitlements to the issue?

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No

3F.3 Will the entity be changing its dividend/distribution policy if the proposed issue is successful? No

3F.4 Countries in which the entity has +security holders who will not be eligible to participate in the proposed issue

United Kingdom, USA, Hong Kong, New Zealand, Switzerland, Canada, Malaysia, Italy, Singapore, Thailand

3F.5 Will the offer be made to eligible beneficiaries on whose behalf eligible nominees or custodians hold existing +securities No

3F.6 URL on the entity's website where investors can download information about the proposed issue

3F.7 Any other information the entity wishes to provide about the proposed issue

3F.8 Will the offer of rights under the rights issue be made under a disclosure document or product disclosure statement under Chapter 6D or Part 7.9 of the Corporations Act (as applicable)? Yes

3F.9 Any on-sale of the +securities proposed to be issued within 12 months of their date of issue will comply with

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the secondary sale provisions in sections 707(3) and 1012C(6) of the Corporations Act by virtue of:

The publication of a +disclosure document or +PDS involving the same class of securities as the +securities proposed to be issued that meets the requirements of section 708A(11) or 1012DA(11)

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