GR ENGINEERING SERVICES LIMITED — Capital/Financing Update 2018

Nov 11, 2018

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ASX RELEASE

12 November 2018

For immediate release to the market

EPC Contract – Thunderbird Mineral Sands Contract

GR Engineering Services Limited (ASX:GNG) ( GR Engineering ) is pleased to announce that it has entered into an engineering, procurement and construction contract with Thunderbird Operations Pty Limited ( Contract ), a wholly owned subsidiary of Sheffield Resources Limited (ASX:SFX) ( Sheffield ) for the engineering design, procurement and construction of a 7.5Mtpa mineral processing plant and associated facilities for the Thunderbird Mineral Sands Project ( Project ), located between Broome and Derby in Western Australia.

The Contract sum is approximately $366.3 million. The commencement of work under the Contract remains subject to GR Engineering being issued with a full notice to proceed, which is dependent on Sheffield satisfying remaining financing conditions ahead of a final investment decision being made to pursue the development of the Project.

Entry into the Contract follows GR Engineering having worked closely with Sheffield since being engaged as preferred tenderer in October 2017 to progress early works on the Project. GR Engineering has substantially progressed detailed design and procurement activities during this time. Delivery is scheduled to occur over approximately two years from the date of site mobilisation, which is anticipated in the second quarter of calendar year 2019, following the wet season.

GR Engineering’s scope of work under the Contract extends to the engineering design, procurement, construction, commissioning and testing of all process and non-process infrastructure for the Project, including a wet concentrate plant, mineral separation plant, low temperature roasting plant, administration buildings, bore fields and high voltage power distribution in addition to all civil scope items. GR Engineering will also provide operations support for a six month term post-completion.

Commenting on the entry into the Contract, GR Engineering’s Managing Director, Mr Geoff Jones, said:

“This Contract represents an important milestone in the development of the world-class Thunderbird Mineral Sands Project. GR Engineering has welcomed the opportunity to contribute towards bringing the Project to an advanced pre-execution phase and is now committed to progressing its safe and successful delivery for Sheffield.”

GR Engineering will inform the market of material developments in respect of the Contract, including the receipt of a full notice to proceed.

Ends

For further information please contact:

Geoff Jones

Managing Director

 +61 8 6272 6000

 geoff.jones@gres.com.au

Joe Totaro

CFO & Company Secretary

 +61 8 6272 6000

 joe.totaro@gres.com.au

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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 71 Daly Street, Ascot WA 6104

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GR Engineering Services Limited (ASX:GNG) is an ASX listed engineering design and construction 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, GR Engineering 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 employs more than 300 professional and support staff throughout Australia and internationally, in addition to a direct construction workforce and subcontracted personnel.

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