HAZER GROUP LIMITED — Interim / Quarterly Report 2021

Feb 25, 2021

Hazer Group Limited Appendix 4D Half-year report

1. Company details

Name of entity: Hazer Group Limited ABN: 40 144 044 600 Reporting period: For the half-year ended 31 December 2020 Previous period: For the half-year ended 31 December 2019

2. Results for announcement to the market

				$
Revenues from ordinary activities	up	6221%	to	1,174,821
Loss for the period	down	21%	to	1,842,655
Loss to the owners of Hazer Group Limited	down	21%	to	1,842,655

Dividends

No dividends were paid in the period.

Comments

The loss for the company amounted to $1,842,655 (31 December 2019: $2,329,436).

3. Net tangible assets

Net tangible assets per ordinary security	Reporting period Cents 13.42	Previous period Cents 8.08

4. Control gained over entities

Not applicable.

5. Loss of control over entities

Not applicable.

6. Details of associates and joint venture entities

Not applicable.

Hazer Group Limited Appendix 4D Half-year report

7. Audit qualification or review

Details of audit/review dispute or qualification (if any):

The financial statements were subject to a review by the auditors and the review report is attached as part of the Interim Report.

8. Attachments

Details of attachments (if any):

The Interim Report of Hazer Group Limited for the half-year ended 31 December 2020 is attached.

9. Signed

Signed ______

Date: 26 February 2021

Geoff Ward Managing Director

Hazer Group Limited ABN 40 144 044 600

Interim Report - 31 December 2020

Hazer Group Limited Directors' report 31 December 2020

The directors present their report, together with the financial statements, of Hazer Group Limited (referred to hereafter as the 'company’) at the end of, or during, the half-year ended 31 December 2020.

Directors

The following persons were directors of Hazer Group Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated:

Tim Goldsmith Geoff Ward Danielle Lee Andrew Harris

Principal activities

During the financial half-year, the principal continuing activities of the company consisted of research and development of novel graphite and hydrogen production technology.

The company has intellectual property rights to a technology (the ‘Hazer Process’) which enables the production of hydrogen gas from the thermo-catalytic decomposition of methane (natural gas) with low carbon dioxide emissions and the coproduction of a high-purity graphite product.

Review of operations

The loss for the company amounted to $1,842,655 (31 December 2019: $2,329,436).

In July 2020, the company approved the final investment decision to proceed with the Hazer Commercial Demonstration Plant (CDP). The CDP is a 100-ton-per-annum low-emission hydrogen production facility that will be the first larger-scale, fully integrated deployment of the Hazer Process and will be located at Water Corporation’s Woodman Point Wastewater Treatment Plant at Munster in Western Australia.

Losses after income tax decreased by 21% on the prior half-year largely due to an increase in revenue $1,174,821 (31 December 2019: $18,586). Half-year revenue included $150,000 grant income from the Western Australian state government’s Renewable Hydrogen Fund; $67,500 of Covid related support from the federal government, and $951,463 R&D Tax Incentive rebate related to expenditure incurred in the prior financial year. The receipt of this R&D Tax Incentive rebate has been achieved earlier than has historically achieved with previous R&D Tax Incentive rebates being received in the second half of the financial year.

During the half-year, the company received $9,410,000 (exclusive of GST) in grant funding from The Australian Renewable Energy Agency (ARENA), an independent agency of the Australian federal government, to support the design, procurement, construction and operation of the company’s commercial demonstration plant. To access the grant funding, the company must meet the operational and technical requirements of agreed funding milestones in a form acceptable to ARENA. As at 31 December 2020, $2,220,000 of the grant income received was available and used by the company with the relevant milestone having been met. Contract liabilities in the balance sheet represent the grant funding received where the milestone criteria are yet to be satisfied and the funds are not available to the company.

The company’s cash and cash equivalents were $28,784,809 as at 31 December 2020 (30 June 2020: $17,236,257) and net assets at 31 December 2020 were $20,177,960 (30 June 2020: $18,013,551). The company’s cash includes $8,069,540 of cash that is restricted from use by the company until certain conditions are satisfied.

Hazer Group Limited Directors' report 31 December 2020

Operating cash inflows for the half-year increased significantly compared to the prior period (31 December 2020: $8,763,018 - 31 December 2019: ($2,043,296)) largely due to the receipt of revenue and ARENA grant funding noted above. Investing cash outflows were $1,730,177 (31 December 2019: $362,506) being expenditure on the CDP.

Financing cash inflows during the half-year related to the exercise of options raising $3,550,000 before share issue costs and $1,013,037 net cash inflows from a senior secured loan.

The first $2,000,000 million tranche of a $6,000,000 senior secured loan was drawn in November 2020 with $951,463 (being the R&D Tax Incentive rebate received during the period) immediately repaid in line with the loan repayment schedule. The key purpose of the loan is to fund the R&D activities associated with the construction of the CDP, however, the loan may also be utilised to improve the short term liquidity of the company and cover the lending costs. The loan will be called down in a further 2 tranches of $2.0 million each and has a term of up to 5 years with repayments to be made from future R&D Tax Incentive payments received by Hazer. As at 31 December, $879,540 of the loan proceeds drawn were held in a restricted bank account and will be accessed by the company as the expected R&D tax rebate associated with eligible expenditure on the CDP and other activities builds up.

As an early stage company, the company’s business model is highly dependent on the achievement of continued technical development success as well as future funding, customer engagement and general financial and economic factors.

Significant changes in the state of affairs

There were no significant changes in the state of affairs of the company during the financial half-year.

Matters subsequent to the end of the financial half-year

• In November 2020, Hazer executed a binding convertible note and option deed with AP Ventures Fund II GP LLP (APV) for an investment by APV in Hazer (Convertible Note Deed). AP Ventures is a leading global venture capital fund focussed on investment in the hydrogen sector, with their investments supporting their portfolio companies through the commercialisation and scale up phases. Under the terms of the Convertible Note Deed, subject to receipt of necessary approvals (including from the Australian Foreign Investment Review Board (FIRB)), APV will make a $4 million investment in Hazer and acquire 4 million unlisted $1 convertible notes and 2.25 million unlisted options in Hazer and will be entitled to nominate a representative to join the Hazer Board. Shareholder approval was obtained in January 2021. The investment remains subject to obtaining the necessary FIRB approvals at the date of this report.

• The impact of the Coronavirus (COVID-19) pandemic is ongoing. While it has had no material impact on the company up to 31 December 2020. It is not practicable to estimate the impact, positive or negative, after the reporting date. The company notes that the CDP project's procurement process has identified supply chain risks that may impact the Project’s delivery schedule. The situation is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions that may impact the timely delivery of complex goods and services, and the impact of economic stimulus measures on the availability and cost of goods and services..

No other matter or circumstance has arisen since 31 December 2020 that has significantly affected, or may significantly affect the company's operations, the results of those operations, or the company's state of affairs in future financial periods.

Auditor's independence declaration

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on the following page.

Hazer Group Limited Directors' report 31 December 2015

This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001.

On behalf of the directors

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Geoff Ward Managing Director

26 February 2021

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AUDITOR’S INDEPENDENCE DECLARATION

As lead auditor for the review of the financial report of Hazer Group Limited for the half year ended 31 December 2020, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

• (i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

• (ii) any applicable code of professional conduct in relation to the audit.

RSM AUSTRALIA PARTNERS

Perth, WA Dated: 26 February 2021

ALASDAIR WHYTE Partner

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Hazer Group Limited Contents 31 December 2020

Contents

Statement of profit or loss and other comprehensive income Statement of financial position Statement of changes in equity Statement of cash flows Notes to the financial statements Directors' declaration Independent auditor's review report

General information

The financial statements cover Hazer Group Limited. The financial statements are presented in Australian dollars, which is Hazer Group Limited's functional and presentation currency.

Hazer Group Limited is a listed public company limited by shares, incorporated and domiciled in Australia.

Its registered office and principal place of business are:

Registered office

Principal place of business

Level 9, 99 St Georges Terrace Level 9, 99 St Georges Terrace Perth WA 6000 Perth WA 6000

A description of the nature of the company's operations and its principal activities are included in the directors' report, which is not part of the financial statements.

The financial statements were authorised for issue, in accordance with a resolution of directors, on 26 February 2021.

Hazer Group Limited Statement of profit or loss and other comprehensive income For the half-year ended 31 December 2020

Note Revenue Interest received R&D tax rebate Grant income Other income Expenses Administration expenses Consulting and research expenses Employee benefits expenses Share based payments Finance costs Depreciation and amortisation expense Loss before income tax expense Income tax expense Loss after income tax expense for the half-year Other comprehensive income for the half-year, net of tax Total comprehensive loss for the half-year Basic and diluted loss per share	31 Dec 2020 $ 5,858 951,463 150,000 67,500 (557,827) (799,777) (1,097,879) (485,286) (54,142) (22,565)
	(1,842,655) -
	(1,842,655) -
	(1,842,655)

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes

Hazer Group Limited Statement of financial position As at 31 December 2020

Note Assets Current assets Cash and cash equivalents 2 Other current assets 3 Total current assets Non-current assets Plant and equipment Commercial demonstration plant 4 Right-of-use asset Total non-current assets Total assets Liabilities Current liabilities Trade and other payables 5 Provisions Contract liabilities 6 Lease liabilities Total current liabilities Non-current liabilities Borrowings 7 Contract liabilities 6 Lease liabilities Total non-current liabilities Total liabilities Net assets Equity Issued capital 8 Reserves 9 Accumulated losses 10 Total equity	31 Dec 2020 $ 28,784,809 458,620	30 Jun 2020 $ 17,236,257 145,290
	29,243,429	17,381,547
	20,625 681,258 25,710	27,765 1,051,871 41,136
	727,593	1,120,772
	29,971,022	18,502,319
	1,371,078 136,893 5,690,000 -	311,874 131,264 - 33,345
	7,197,971	476,483
	1,065,290 1,500,000 29,801	- - 12,285
	2,595,091	12,285
	9,793,062	488,768
	20,177,960	18,013,551
	40,484,860 3,980,580 (24,287,480)	34,128,809 7,185,964 (23,301,222)
	20,177,960	18,013,551

The above statement of financial position should be read in conjunction with the accompanying notes

Hazer Group Limited Statement of changes in equity For the half-year ended 31 December 2020

Balance at 1 July 2019 Loss after income tax expense for the half-year Other comprehensive income for the half-year, net of tax Total comprehensive loss for the half-year Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs Shares issued pursuant to the exercise of options Share based payments Transfer expired options to accumulated losses Balance at 31 December 2019 Balance at 1 July 2020 Loss after income tax expense for the half-year Other comprehensive income for the half-year, net of tax Total comprehensive loss for the half-year Transactions with owners in their capacity as owners: Shares issued pursuant to the exercise of options Share-based payments Transfer expired options to accumulated losses Balance at 31 December 2020	Issued capital $ 18,541,771 - -	Reserves $ 9,224,488 - -	Accumulated losses $ (21,931,953) (2,329,436) - (2,329,436) - - - 71,403 (24,189,986) (23,301,222) (1,842,655) - (1,842,655) - - 856,397 (24,287,480)	Total equity $ 5,834,306 (2,329,436) -
	- 5,523,231 376,269 - -	- - (16,269) 413,906 (71,403)		(2,329,436) 5,523,231 360,000 413,906 -
	24,441,271	9,550,722		9,802,007
	34,128,809 - -	7,185,964 - -		18,013,551 (1,842,655) -
	- 6,356,051 - -	- (2,834,273) 485,286 (856,397)		(1,842,655) 3,521,778 485,286 -
	40,484,860	3,980,580		20,177,960

The above statement of changes in equity should be read in conjunction with the accompanying notes

Hazer Group Limited Statement of cash flows For the half-year ended 31 December 2020

Note Cash flows from operating activities Payments to suppliers and employees (inclusive of GST) Interest received Interest and other finance costs paid Research and development tax rebate received ARENA grant income received (inclusive of GST) Grant income received (inclusive of GST) Other government rebates received Net cash used in operating activities Cash flows from investing activities Payments for commercial demonstration plant Net cash used in investing activities Cash flows from financing activities Proceeds from issue of shares, net of share issue costs Proceeds from exercise of share options, net of share issue costs Proceeds from borrowings Repayment of borrowings Transaction costs related to borrowings Repayment of lease liability Net cash provided by financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial half-year Cash and cash equivalents at the end of the financial half-year	31 Dec 2020 $ (2,694,657) 5,858 (646) 951,463 10,351,000 82,500 67,500	31 Dec 2019 $ (2,061,160) 18,586 (722) - - - - (2,043,296) (362,506) (362,506) 5,574,292 360,000 - - - (15,958) 5,918,334 3,512,532 6,003,068 9,515,600
	8,763,018
	(1,730,177)
	(1,730,177)
	- 3,520,912 2,000,000 (951,463) (35,500) (18,238)
	4,515,711
	11,548,552 17,236,257
	28,784,809

The above statement of cash flows should be read in conjunction with the accompanying notes

Hazer Group Limited Notes to the financial statements 31 December 2020

Note 1. Significant accounting policies

These general purpose financial statements for the interim half-year reporting period ended 31 December 2020 have been prepared in accordance with Australian Accounting Standard AASB 134 'Interim Financial Reporting' and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'.

These general purpose financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2020 and any public announcements made by the company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The principal accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, except for the policies stated below:

Revenue recognition

Grant income

The company receives grant income from the Western Australian state government. The company recognises the grant income when the conditions attached to the grant are satisfied and there is reasonable assurance the grant will be received.

Contract liabilities

The company has received grant funding from The Australian Renewable Energy Agency (ARENA), an independent agency of the Australian federal government, to support the design, procurement, construction and operation of the commercial demonstration plant. To access the grant funding, the company must meet the operational and technical requirements of agreed funding milestones in a form acceptable to ARENA. Contract liabilities represent the grant funding received where the milestone criteria are yet to be satisfied and the funds are not available to the company.

Borrowings

Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method.

New or amended Accounting Standards and Interpretations adopted

The company has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board that are mandatory for the current reporting period.

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

Note 2. Cash and cash equivalents Cash at bank Cash on deposit Cash at bank – restricted1 Cash at bank – restricted2	31 Dec 2020 $ 20,630,362 84,907 7,190,000 879,540	30 Jun 2020 $ 17,151,350 84,907 - - 17,236,257
	28,784,809

1 The company has received grant funding from ARENA, an independent agency of the Australian federal government, to support the design, procurement, construction and operation of the commercial demonstration plant. To access the grant funding, the company must meet the operational and technical requirements of agreed funding milestones in a form acceptable to ARENA. This restricted cash represents the grant funding received where the milestone criteria are yet to be satisfied and the funds are not yet freely available for use by the company.

2 The company has received borrowing proceeds which are not yet freely available for use by the company. The company can access funds up to 85% of the expected future R&D tax rebate on eligible expenditure on the CDP and other activities.

Hazer Group Limited Notes to the financial statements 31 December 2020

Note 3. Other current assets Trade receivable Prepayments GST refundable Deposit Note 4. Commercial demonstration plant Commercial demonstration plant – cost Commercial demonstration plant – accumulated amortisation Commercial demonstration plant – ARENA grant offset	31 Dec 2020 $ 82,500 175,241 197,275 3,604	30 Jun 2020 $ - 48,258 93,428 3,604 145,290 30 Jun 2020 $ 1,051,871 - 1,051,871
	458,620
	31 Dec 2020 $ 2,901,258 - (2,220,000)
	681,258

The commercial demonstration plant design is a key stage in the development and scale up of the Hazer process. Development costs directly attributable to create, produce and prepare the commercial demonstration plant for the purpose intended by management is recognised as an intangible asset when the criteria under AASB 138 are satisfied. The commercial demonstration plant has not been amortised as it is not yet ready for use.

Note 5. Trade and other payables Accounts payable GST payable Other payables Note 6. Contract liabilities Current contract liability Non-current contract liability	31 Dec 2020 $ 350,016 956,000 65,062	30 Jun 2020 $ 135,071 - 176,803 311,874 30 Jun 2020 $ - - -
	1,371,078
	31 Dec 2020 $ 5,690,000 1,500,000
	7,190,000

The company has received grant funding from ARENA, an independent agency of the Australian federal government, to support the design, procurement, construction and operation of the commercial demonstration plant. To access the grant funding, the company must meet the operational and technical requirements of agreed funding milestones in a form acceptable to ARENA. Contract liabilities represent the grant funding received where the milestone criteria are yet to be satisfied and the funds are not yet available to the company.

Hazer Group Limited Notes to the financial statements 31 December 2020

Note 7. Borrowings Current borrowings Non-current borrowings	31 Dec 2020 $ - 1,065,290	30 Jun 2020 $ - - -
	1,065,290

The borrowings are secured. The lender as a registered security interest over the present and future assets of Hazer under a general security deed

Note 8. Equity - issued capital

Ordinary shares - fully paid Movements in ordinary shares Opening balance 1 July 2019 Issue of shares on exercise of series B options Issue of shares on exercise of series B options Issue of shares on exercise of series B options Issue of shares on exercise of series B options Issue of shares on exercise of series B options Issue of shares on exercise of series B options Transfer of series B options from options reserve Share issue transaction costs Closing balance 31 December 2020 Note 9. Equity - reserves Option reserve	31 Dec 2020 30 Jun 2020 Shares Shares 145,134,802 136,259,802 No of shares 136,259,802 13 Oct 2020 2,150,000 23 Oct 2020 1,125,000 30 Oct 2020 200,000 10 Nov 2020 1,500,000 23 Nov 2020 600,000 30 Dec 2020 3,300,000 31 Dec 2020 - - 145,134,802	31 Dec 2020 30 Jun 2020 Shares Shares 145,134,802 136,259,802 No of shares 136,259,802 13 Oct 2020 2,150,000 23 Oct 2020 1,125,000 30 Oct 2020 200,000 10 Nov 2020 1,500,000 23 Nov 2020 600,000 30 Dec 2020 3,300,000 31 Dec 2020 - - 145,134,802	31 Dec 2020 $ 40,484,860 Issue price 0.40 0.40 0.40 0.40 0.40 0.40 - - 31 Dec 2020 $ 3,980,580	30 Jun 2020 $ 34,128,809 $ 34,128,809 860,000 450,000 80,000 600,000 240,000 1,320,000 2,834,273 (28,222) 40,484,860 30 Jun 2020 $ 7,185,964 7,185,964
		145,134,802
			3,980,580

Option reserve

The option reserve records items recognised as expenses on the valuation of share options.

Hazer Group Limited Notes to the financial statements 31 December 2020

Movements in reserves

Movements in each class of reserve during the current and previous financial year are set out below:

Balance at 1 July 2020 New options issued during the half-year vesting over multiple periods Series N Existing options issued in prior periods vesting over multiple periods Series_M & N _Options exercised & lapsed during the period Series B - exercised Series J - lapsed Balance at 31 December 2020	No of Options 25,625,000 2,000,000 - (8,875,000) (3,750,000)	Value $ 7,185,964 316,165 169,121 (2,834,273) (856,397) 3,980,580
	15,000,000

The value of the options issued during the half-year and vesting over multiple periods and expensed to the statement of profit or loss and other comprehensive income is $485,286.

Note 10. Equity – Accumulated losses Accumulated losses at the beginning of the financial year Loss after income tax expense for the year Transfer expired options to accumulated losses Accumulated losses at the end of the financial year	31 Dec 2020 $ 23,301,222 1,842,655 (856,397)	30 Jun 2020 $ 21,931,953 3,225,289 (1,856,020) 23,301,222
	24,287,481

Note 11. Contingent assets and liabilities

The company does not have any contingent assets and liabilities at 31 December 2020 (2019: Nil).

Note 12. Segment information

The company has considered the requirements of AASB8 – Operating Segments and has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors (chief operating decision-makers) in assessing performance and determining the allocation of resources.

The company operates as a single segment being research and development of novel graphite-and-hydrogen-production technology. There is no difference between the audited financial report and the internal reports generated for review. The company is domiciled in Australia and is currently in the development phase and hence has not begun to generate revenue from operations. All the assets are located in Australia.

Hazer Group Limited Notes to the financial statements 31 December 2020

Note 13. Commitments

Committed at the reporting date but not recognised as liabilities:

Research collaboration agreement: Committed at the reporting date but not recognised as liabilities, payable: Within one year Later than 1 year but not later than 5 years	31 Dec 2020 $ 284,763 87,650	30 Jun 2020 $ 317,851 251,950
	372,413	569,801

Note 14. Events after the reporting period

• In November 2020, Hazer executed a binding convertible note and option deed with AP Ventures Fund II GP LLP (APV) for an investment by APV in Hazer (Convertible Note Deed). AP Ventures is a leading global venture capital fund focussed on investment in the hydrogen sector, with their investments supporting their portfolio companies through the commercialisation and scale up phases. Under the terms of the Convertible Note Deed, subject to receipt of necessary approvals (including from the Australian Foreign Investment Review Board (FIRB)), APV will make a $4 million investment in Hazer and acquire 4 million unlisted $1 convertible notes and 2.25 million unlisted options in Hazer and will be entitled to nominate a representative to join the Hazer Board. Shareholder approval was obtained in January 2021. The investment remains subject to obtaining the necessary FIRB approvals at the date of this report.

• The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has had no impact on the company up to 31 December 2020, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided.

No other matter or circumstance has arisen since 31 December 2020 that has significantly affected, or may significantly affect the company’s operations, the results of those operations, or the company's state of affairs in future financial years.

Hazer Group Limited Directors' declaration 31 December 2020

In the directors' opinion:

• the attached financial statements and notes comply with the Corporations Act 2001, Australian Accounting Standard AASB 134 'Interim Financial Reporting', the Corporations Regulations 2001 and other mandatory professional reporting requirements;

• the attached financial statements and notes give a true and fair view of the company's financial position as at 31 December 2020 and of its performance for the half-year ended on that date; and

• there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of directors made pursuant to section 303(5)(a) of the Corporations Act 2001.

On behalf of the directors

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Geoff Ward Managing Director

26 February 2021

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INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF HAZER GROUP LIMITED

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Hazer Group Limited, which comprises the statement of financial position as at 31 December 2020, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Directors’ Responsibility for the Half-Year Financial Report

The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the company’s financial position as at 31 December 2020 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of Hazer Group Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 . We confirm that the independence declaration required by the Corporations Act 2001 , which has been given to the directors of Hazer Group Limited, would be in the same terms if given to the directors as at the time of this auditor’s review report.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Hazer Group Limited is not in accordance with the Corporations Act 2001 including:

• (a) giving a true and fair view of the company’s financial position as at 31 December 2020 and of its performance for the half-year ended on that date; and

• (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001 .

RSM AUSTRALIA PARTNERS

Perth, WA Dated: 26 February 2021

ALASDAIR WHYTE Partner