GR ENGINEERING SERVICES LIMITED — Capital/Financing Update 2020

Jun 14, 2020

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ASX RELEASE

15 June 2020

For immediate release to the market

Lake Way Project – Design and Construction Works

GR Engineering Services Limited (ASX: GNG) (GR Engineering) is pleased to announce that it has been engaged by Salt Lake Potash Limited (SO4.ASX) (Salt Lake Potash) for the design and construction of the Lake Way Project.

The Lake Way Project is a 245kt per annum Sulphate of Potash (SOP) development project with an expected mine life of over 20 years. The project is located in the Goldfields region of Western Australia, approximately 15km south of Wiluna.

GR Engineering has been engaged by Salt Lake Potash to provide services for non-process engineering design and the management of procurement, construction and commissioning of the Lake Way Project processing facility and associated infrastructure. GR Engineering has separately been engaged to undertake the civil, structural, mechanical, electrical and piping construction works for those project areas.

It is anticipated that aggregate revenue from the delivery of services, procurement and construction works associated with the Lake Way Project from the commencement date to practical completion will be approximately $107 million. Based on Salt Lake Potash’s anticipated project timing, the majority of this revenue is likely to be realised in the financial year ending 30 June 2021.

GR Engineering’s scope contemplates a collaborative arrangement, where it will work with Salt Lake Potash’s project team and manage the delivery of third party process design and key equipment supply. The construction scope will be performed on a target cost estimate basis, incentivising GR Engineering to achieve favourable budget and schedule outcomes.

Commenting on the award, Mr Geoff Jones, Managing Director said:

“We are extremely pleased to have been engaged to play a key role in the delivery of the process plant and non-process infrastructure for the Lake Way Project. We look forward to continuing to work collaboratively with Salt Lake Potash to deliver safe and successful outcomes. GR Engineering looks forward to Salt Lake Potash emerging as a significant new Australian SOP Producer.”

Ends.

For further information please contact:

Geoff Jones Managing Director  +61 8 6272 6000  geoff.jones@gres.com.au

Omesh Motiwalla

• CFO & Company Secretary  +61 8 6272 6000

•  omesh.motiwalla@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