GR ENGINEERING SERVICES LIMITED — Capital/Financing Update 2017

Feb 28, 2017

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ASX RELEASE

1 March 2017

For immediate release to the market

CONTRACT AWARD – UPSTREAM PRODUCTION SOLUTIONS BLACKTIP GAS FIELD / YELCHERR GAS PLANT

GR Engineering Services Limited (ASX:GNG) ( GR Engineering ) is pleased to announce that its wholly owned subsidiary, Upstream Production Solutions ( Upstream PS ), has entered into a maintenance services contract with Eni Australia, the operator of the Blacktip Gasfield and associated production infrastructure ( Contract ).

Under the Contract, Upstream PS has been engaged to provide maintenance services for an initial term of three years (with extension options). Upstream PS’ scope of services includes the administration and execution of maintenance activities, logistics, procurement, engineering and operations support in relation to the unmanned Blacktip Wellhead Platform and associated onshore Yelcherr Gas Plant.

The Blacktip gas field is located 110km off the northern coast of Australia in the Timor Sea’s Bonaparte Basin. The Yelcherr Gas Plant is located 12km south west of the town of Wadeye in the Northern Territory.

Commenting on the Contract award, Upstream PS’ Managing Director, Joe Corvetti said:

“Upstream PS has a strong historical presence in the Northern Territory with our business being founded in Darwin more than 18 years ago. The Blacktip Gasfield supplies gas for domestic power generation in the Northern Territory and Upstream PS is proud to be associated with this regionally significant project.

This will be the second project that we are engaged on in the Timor Sea. We will be drawing upon our specialist operations and maintenance capability to work with Eni and support safe and efficient production.”

GR Engineering’s Managing Director, Geoff Jones noted:

“Upstream PS’ ability to continue adding to its client portfolio is commendable, and a testament to its management, delivery team and track record.”

The Contract will not have a material impact on the Company's anticipated FY17 financial results.

Ends.

GR ENGINEERING SERVICES LIMITED ABN 12 121 542 738 Tel: +61 8 6272 6000 Fax: +61 8 6272 6001 Email: gres@gres.com.au Website: www.gres.com.au PO Box 258, Belmont WA 6984 179 Great Eastern Highway, Belmont WA 6104

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About Upstream Production Solutions

Upstream PS has an extensive track record in the provision of operations and maintenance, wellsites, engineering and production assurance services. The Upstream PS team has served the oil and gas industry in Australia and South East Asia for more than 18 years, with a strong reputation for providing safe, innovative and sustainable solutions to production challenges.

For further information contact:

Geoff Jones Joe Corvetti Managing Director Managing Director GR Engineering Services Limited Upstream Production Solutions

 +61 8 6272 6000  +61 3 8623 9800  geoff.jones@gres.com.au  joe.corvetti@upstreamps.com

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GR Engineering Services Limited (ASX:GNG) is an ASX listed engineering and consulting contractor specialising in fixed price engineering design and construction services to the resources and mineral processing industry.

GR Engineering has successfully completed the engineering design and construction of projects for a diverse range of clients, including global mining houses, mid-tier miners and junior developers undertaking their first project. Traditionally an EPC contractor, GRES also has the ability to contract through a variety of models, including EPCM and hybrid contracting arrangements.

GR Engineering also has a long history of providing a diverse range of process engineering consulting services, including feasibility study preparation and management, process design and peer review engagements. These services have been delivered for projects globally and play a key role in delivering organic growth opportunities through design and construction project execution.

The Company also has a presence in the hydrocarbons industry via its wholly owned subsidiary, Upstream Production Solutions. Upstream production Solutions is a leading provider of operations and maintenance and well management services to the Australian and South East Asian oil and gas industry.

As a group, GR Engineering and Upstream Production Solutions employs more than 450 professional and support staff throughout Australia and internationally, in addition to a direct construction workforce and subcontractors.

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