GR ENGINEERING SERVICES LIMITED — Capital/Financing Update 2020

Feb 16, 2020

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ASX RELEASE

17 February 2020

For immediate release to the market

LETTER AGREEMENT – UPSTREAM PRODUCTION SOLUTIONS NORTHERN ENDEAVOUR FPSO

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 an agreement with the Department of Industry, Science, Energy and Resources of the Australian Government (Department) to provide operations and maintenance services to the Northern Endeavour floating production, storage and offtake facility (Agreement).

On 14 February 2020, the Department announced that urgent steps were underway to secure the continued safety and security of the Northern Endeavour FPSO after the liquidation of the Northern Oil and Gas Australia group of companies (NOGA). It also announced the establishment of the Northern Endeavour Temporary Operations Program to provide funding to support the operation and maintenance of the Northern Endeavour (Program).

As part of the Program, the Department has now engaged Upstream PS to provide operations and maintenance services that will reinstate minimum manning and restore safety critical services to the Northern Endeavour. Upstream PS has safely remobilised personnel to the FPSO and is proceeding under an initial short term contract to provide services to the Department on commercial terms, in a nonproduction environment.

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

“We are pleased that Upstream PS has been identified as the party best placed to support the Department’s immediate safety and security objectives under the Northern Endeavour Temporary Operations Program. Upstream PS’ involvement in operating and maintaining the Northern Endeavour for over three and a half years and at all times prior to NOGA’s entry into liquidation has facilitated Upstream PS’ quick response and safe re-mobilisation to the Facility.”

Further information on the Northern Endeavour Temporary Operations Program is available at https://www.minister.industry.gov.au/ministers/pitt/media_releases.

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