IGO LIMITED — Capital/Financing Update 2018

Oct 22, 2018

ASX RELEASE

23 October 2018

Zenith Energy to install Solar Capacity at IGO’s Nova Operation

Highlights

• Zenith Energy has executed an amendment to the Power Purchase Agreement (PPA) with Independence Group NL to incorporate a solar photovoltaic (Solar PV) facility at the Nova Operation with a forecast 12.5GWh annual yield

• Supply from the facility is expected to commence in the first quarter of FY20

• Zenith’s contracted Build Own Operate (BOO) capacity will be maintained at circa 195MW following completion of the facility

Remote power generation specialist Zenith Energy Limited (ASX: ZEN) ( Zenith ) is pleased to announce that its wholly-owned subsidiary, Zenith Pacific (SIR) Pty Ltd, has executed an amendment to the Power Purchase Agreement (PPA) with Independence Group NL (ASX: IGO) ( IGO ) to incorporate a Solar PV facility at the Nova Operation, with a forecast 12.5GWh annual yield.

Under the proposed amended terms of the PPA, Zenith will build, own and operate (BOO) a hybrid diesel/Solar PV power station of approximately 26MW in installed capacity to reliably and efficiently service the power needs of the Nova Operation.

The Solar PV facility will complement the existing Nova Diesel Power Station designed, owned, and operated by Zenith. The Solar PV will include new state-of-the-art PV modules, single axis tracking, inverters, communications and control system technology. The installation will take total generating capacity to 26MW at Nova.

The hybrid power station will incorporate high efficiency diesel fuelled generators and solar PV generation, providing the Nova Operation with highly efficient, cost effective and environmentally responsible power generation into the future. The integrated Solar PV facility is expected to have a supply commencement date from Q1 FY20 with an initial supply period of six years and an option for IGO to extend for a further two years, aligned with the existing PPA.

Completion of the integrated Solar PV facility is expected within Q1 FY20, and will positively impact Zenith’s FY20 earnings.

ZENITH ENERGY LIMITED

PERTH | 24 Brennan Way, Belmont, WA, 6104 | P +61 (0) 8 9416 2000 | F +61 (0) 8 9477 1833 CAIRNS | 80 Fearnley Street, Cairns, Qld, 4870 | P + 61 (0) 7 4051 9533 | F +61 (0) 7 4051 9599 E info@zenithenergyltd.com | W www.zenithenergyltd.com | ACN 615 682 203

ASX RELEASE

23 October 2018

Zenith Energy’s Managing Director, Hamish Moffat commented:

“We are delighted to sign this PPA amendment with IGO, which again demonstrates Zenith Energy’s ability to provide dynamic, innovative solutions for our clients in a safe, reliable, highly efficient and cost-effective manner. This development represents the first fully integrated commercial hybrid diesel/Solar PV facility in Australia and is a step forward in future renewable energy solutions. We look forward to continuing our work with the team at IGO to deliver effective power supply solutions to their Nova Operation.”

IGO’s Managing Director, Peter Bradford commented:

“At IGO we believe in the green energy future and are committed to renewable energy sources as we strive to reduce our carbon footprint. The development of this innovative hybrid energy solution will also improve our cost structure with targeted renewable power insertion of up to 50% of demand via the Solar PV facility.”

The Nova Operation is located in the Fraser Range, approximately 160km east-northeast of Norseman, 360km southeast of Kalgoorlie and 380km from the port of Esperance in Western Australia.

ENDS

Hamish Moffat

Managing Director +61 8 9416 2000

Media

Citadel-MAGNUS John Gardner +61 413 355 997

ZENITH ENERGY LIMITED

PERTH | 24 Brennan Way, Belmont, WA, 6104 | P +61 (0) 8 9416 2000 | F +61 (0) 8 9477 1833 CAIRNS | 80 Fearnley Street, Cairns, Qld, 4870 | P + 61 (0) 7 4051 9533 | F +61 (0) 7 4051 9599 E info@zenithenergyltd.com | W www.zenithenergyltd.com | ACN 615 682 203