GR ENGINEERING SERVICES LIMITED — Capital/Financing Update 2019

Jan 20, 2019

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ASX RELEASE

21 January 2019

For immediate release to the market

EPC Contract – Sandy Ridge Project

GR Engineering Services Limited (ASX:GNG) ( GR Engineering ) is pleased to announce that it has entered into an engineering, procurement and construction contract ( Contract ) with Tellus Holdings Ltd ( Tellus ), a public unlisted infrastructure development company in the business of developing geological repositories that provide waste storage, recovery and permanent isolation solutions and complementary salt and clay products.

The Contract is for the engineering design, procurement and construction of infrastructure for a fully integrated facility for the long-term storage, recovery and permanent isolation of hazardous and intractable waste and an associated kaolin mining operation located approximately 75km northeast of Koolyanobbing, in the Shire of Coolgardie, within the goldfields region of Western Australia.

The Contract price is approximately $50 million, with the works to be delivered under a guaranteed maximum price (GMP) model. GR Engineering’s scope of work under the Contract includes the engineering, procurement, construction and commissioning of the waste cell infrastructure, access roads, raw water supply and other key facility infrastructure for the Sandy Ridge Project’s underground waste facility.

It is proposed that the Contract will be undertaken in two stages, with stage one comprising engineering and design and long lead procurement activities for the works, anticipated to commence in coming weeks, subject to the satisfaction of conditions precedent, which primarily relate to conditions associated with Tellus’ proposed financing facilities.

Stage two execution of the works is intended to commence mid-calendar year 2019, subject to Tellus satisfying additional conditions relating to the balance of the Sandy Ridge project approvals.

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

“We are pleased to progress this opportunity with Tellus, which has followed GR Engineering’s involvement to date in the Sandy Ridge project’s feasibility study and preliminary design work. Delivery of the project will enable GR Engineering to leverage its skillset in an innovative manner and diversify its industry exposures in a familiar location. We look forward to working with Tellus to safely and successfully deliver the Sandy Ridge Project.”

Ends

For further information please contact:

Geoff Jones

Managing Director  +61 8 6272 6000

Joe Totaro

CFO & Company Secretary  +61 8 6272 6000

 geoff.jones@gres.com.au  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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