MEC RESOURCES LIMITED — Investor Presentation 2021

Aug 25, 2021

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ASX ANNOUNCEMENT

26 August 2021

BROKER BRIEFING INVESTOR WEBINAR

MEC Resources Limited (ASX: MEC) (MEC or the Company) is pleased to advise shareholders and investors that the Company’s investee Advent Energy Ltd will be represented as part of the free Broker Briefing Investor Webinar on Thursday 26 August 2021.

Date: 26 August 2021

Time: 11:30am AEST / 9:30am AWST

Presenter: Managing Director, David Breeze presenting at 11:50am AEST / 9:50am AWST

The Company invites shareholders, investors, and media to participate in this digital event by registering online via the link below:

https://zoom.us/webinar/register/2316296780420/WN_fk_4dLRATdyptba9NNrEng

Participants will be able to submit questions via the panel throughout the presentation, however, we encourage shareholders and investors to send through questions via email beforehand to info@brokerbriefing.com

A copy of the presentation paper is attached.

David Breeze (Managing Director) authorised the release of this announcement to the market.

MEC Resources Ltd

ACN 113 900 020 Level 1, 9 Bowman Street, South Perth WA 6151 T: +61 8 9217 2400 info@mecresources.com.au www.mecresources.com.au

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BPH Energy Ltd - Company Presentation on Advent PEP11 – Offshore Sydney Basin 26 August 2021

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• Daily Telegraph 23 08 2021- Clarissa Bye “As Energy Prices Rise the heat is on for NSW to find its own sources of gas “ “Opening up new sources of gas will be critical to preventing price hikes over the next two years”

• “East Coast Gas shortfall imminent “Annabelle Powell Energy

Magazine 17 08 2021 The latest gas report from the ACCC has revealed that a supply shortfall in Australia’s east coast gas market is increasingly likely, and indicates a finely balanced supply outlook for 2022.

A shortfall of 2PJ could arise across the entire east coast gas market in 2022, driven by a shortfall of up to 6PJ in the southern states, if LNG producers export all of their surplus gas.

This forecast is dependent upon demand from gas powered generators decreasing to record lows, and a material volume of gas from currently undeveloped reserves being supplied. ACCC Chair, Rod Sims, said, “The precarious supply situation for next year highlights the importance of the new Heads of Agreement that the Australian Government signed with LNG exporters in January 2021.”

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• This price is definitely not right .Energy Magazine 17 06 2021 by Tamatha Smith, General Manager,

Corporate Affairs, Energy Networks Australia. A network price increase of 40 per cent from one year to the next is almost unheard of – but it is about to happen to the Australian Capital Territory’s (ACT) electricity customers. Evoenergy’s pricing proposal for 2021/22 was released by the Australian Energy Regulator in early April and it tells a cautionary tale about how state-based policies can very quickly turn on their customers. 2

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The PEP 11 Gas and proposed CCS Project at Baleen ( Seablue1 well) in the Offshore Sydney Basin has potential national significance.

It addresses both forecast gas shortages and the objective of Net Zero Emissions. Advent has committed all gas from the project to Australia domestic supply CCS

• Carbon Capture, Usage and Storage (CCUS) technology is one of the priority technologies in Australia’s Technology Investment Roadmap.

• It has been identified by the IEA as the only large-scale mitigation option available that can deliver the additional CO2 emissions reductions that would be required to meet the climate goals in 2050.

• The PEP11 project is the closest potential carbon storage area to the major Australian carbon sources which are in the order of 30% of the entire Australian CO2 output.

• The Wood Mackenzie report (June 2021) “Location, location, location -the key to carbon disposal “notes “Synergies are greatest where industrial point sources are both near each other and a viable storage site.”

Gas-Base load power ,Energy costs and employment

• In NSW, est. 300,000 jobs rely on gas supply. Gas supplies around 1.3 million households and 33,000 businesses.

• NSW’s manufacturing sector, which is approximately 84% of the state’s Industrial gas load, employs 253,000 people in 26,127 businesses, adding $33 billion in industry value. Without addressing NSW’s looming gas shortfall these could be at risk.

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CRUCIAL GAS SUPPLY ISSUES NSW

NSW GAS “Running on empty -NSW Business Chamber ”

• NSW imports 98 per cent its gas gas requirements from other states

• A constrained national gas market will see further price rises for every household and business in NSW

• Inaction on gas and energy security are now holding the future of businesses in NSW to ransom, threatening employment losses and reduced investment

• As the southern (Victoria, Tasmania, NSW and South Australia) fields further decline in the future and if no more southern resources are developed, pipeline constraints (particularly in the pipelines from

• Victoria “Gas Substitution road map “

• Gas supply outlook for Victoria For over fifty years, Victoria has had access to low cost, abundant natural gas, extracted from offshore gas fields located in Bass Strait. 1

• Australian Energy Market Operator (AEMO), However, as AEMO has indicated in its 2021 Gas Statement of Opportunities (GSOO), these gas fields are rapidly depleting. AEMO is forecasting an overall decline in Victoria’s production of 43 per cent from 360 PJ per year in 2021 to 205PJ per year in 2025.

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COOPER ENERGY PRESENTATION 23 August 2021 -Gas Market Extract-Source Energy Quest

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Recognition of value and need –CCS and Gas

• In January 2020, the NSW and Australian governments signed a MOU to jointly fund $2 Billion to increase energy supply and reduce emissions in NSW. This includes a specific target to bring an additional 70 PJ/yr. into the NSW market by 2022.

• The NSW Future of Gas statement released July 2021 notes the east coast gas market could face a supply shortage as early as 2023 and simultaneously reduced the area covered by Petroleum exploration Licences by 77%

• The gas price spikes and shortages in the east Australian gas market occur when there is high demand during the Australian winter. This period coincides with summer demand in the northern hemisphere also spiking driven by increased power needs related to summer heatwaves. In the week to 30 07 2021 this sent Japan futures to U.S.$16 per million British thermal units (‘ENB 30 07 2021’)

• International energy prices are increasingly setting east coast domestic prices ,increasing the volatility in domestic gas prices .This has forced some manufacturers exposed to spot prices to the brink.(AFR 09 08 21)

• Preventing power blackouts is becoming more difficult as weather dependent renewables replace coal powered generation .This is forcing the energy market regulator (AEMO) to intervene more often (250 times in 2019 -20 compared to 20 three years earlier.) and ordering other sources typically gas power to come online. The 2020 report ranked electricity supply security as “critical “ status. (“POWER FIX URGENT AS GRID TEETERS AFR 050121”)

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PEP11-85% Interest

PEP11– Offshore Sydney Basin:

• The Sydney Basin is a proven hydrocarbon basin with excellent potential for further discovery of natural gas / significant multi-Tcf natural gas project

• PEP11 covers 4,649 km[2] on the doorstep of SydneyNewcastle & extensive gas infrastructure (<50km).

• Analogues to major discoveries -the offshore Sydney Basin contains all the elements seen in other producing world class petroleum basins, including Prospective Resources of 5.7 Tcf (P50) in structural targets.

• Current application to NOPTA to enable drilling as next

step

• Significant interest in the project is driven by the gas market dynamics Shortfall forecast in gas supply east

coast

• Two new gas fired power stations for NSW firming generation

• CCS potential (independently verified)

• Key attributes for Hydrogen role

• Significant potential employment driver

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“The late Permian coal measures could provide a viable ,mature ,gas /condensate source along the length of the Offshore Uplift with simple migration pathways updip to the crest of the uplift.…” “This model results in all of the Late Permian Coal Measures being in the gas window”

Figure-Offshore Sydney Basin –Inferred Maturity and Migration Pathways

Source “Evolution and Hydrocarbon Prospectivity of the Offshore Sydney Basin Bradley G New Petroleum Symposium 1993”

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(25 sq km )*

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Geophysical Gas Indications

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----- Start of picture text -----

TOPAS Sub bottom profiles from SS10 / 2006
2011 PEP11 Permit Boundary Shown
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Heggland -Fluid Migration-Gulf of Mexico (Statoil Model)

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Chimneys and pock marks indicating focus areas of fluid flow above the top reservoir

• •“ seismic chimneys are visible in 90% of all Mesozoic and Tertiary basins.”

• Gas chimneys have been observed to tie in to features

• associated with gas seepage like pockmarks and ….shallow gas accumulations and faults

• Recent studies have revealed that chimneys can represent a

• link to deeper hydrocarbon accumulations

• Active seeps and migrated hydrocarbons are a key indicator of

• ongoing hydrocarbon generation (Abrams M Hydrocarbon migration and its near surface expression: AAPG Memoir 66)

• The mapping of chimneys has significance in geohazards

• interpretation

• High concentrations of chimneys are observed in areas where

• discovery wells and oil and gas fields are present

• Schumacher D “A recent review of more than 850 wildcat wells

• –all drilled after geochemical surveys finds that 79% of wells drilled in positive anomalies resulted in commercial oil and gas

“ discoveries ( Surface geochemical exploration, D. Schumacher, 2000,)

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Offshore Sydney Basin – Direct Hydrocarbon Indicators PEP11

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Figure 69: Display of Line B4-15. The continuity of high amplitude reflector has been mapped.

“Strong energy reflections present on seismic section can be associated with major lithologic changes as well as hydrocarbon accumulations.”

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Figure 72: Instantaneous frequency plot for the high amplitude reflector. It is showing low frequency anomaly.

Figure 70:

Reflection Strength plot of the high amplitude reflector

“Gas reservoirs, in particular, appear as high amplitude “bright spot” reflections.”

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Figure 74: RMS of seismic amplitude over the area of Line B4-15, where high amplitude reflector is mapped.

• “The Root Mean Square (RMS) amplitude … may be used to map direct hydrocarbon indicators in a zone.”

“Instantaneous frequency content is of interest in that high frequencies are attenuated by gas and condensate reservoirs.”

“The RMS of seismic amplitude for the 700ms window have been calculated. This indicates a bright spot like feature, which is a prime indicator for the occurrence of gas.”

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IN CONCLUSION

• Advent Energy proposes to drill a gas exploration well, Sea Blue-1, in the offshore Sydney Basin.

• The exploration lease (PEP 11) is located close to the Newcastle-Hunter region - and major emission sources which will need to be cut if NSW is to meet its target of NET Zero by 2050.

• CCS is a key technology option to do this - and maintain an industrial base.

• There is presently no confirmed onshore geological storage site in NSW

• The offshore Sydney Basin has storage potential but has never been definitely evaluated due to lack of well data

• Sea Blue- 1 will provide the opportunity to cost-effectively assess CO2 storage potential.

• Confirmation of offshore geological storage potential would be a game changer for NSW and its NZE target

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Disclaimer and Important Information

• This company presentation (the “Company Presentation”) of Advent Energy Limited (the “Company”) has been prepared by the Company solely for information purposes and for the sole use of the person to whom it is delivered. The Presentation is prepared for discussion purposes only. The Presentation does not constitute, and should not be construed as, any offer or invitation or recommendation to buy or sell any of the securities mentioned or described herein. The presentation and its contents are strictly confidential and may not be reproduced or redistributed, in whole or in part, to any other person than the intended recipient. The distribution of it and any offering, subscription, purchase or sale of securities issued by the Company may in certain jurisdictions (including but not limited to USA, Canada, Japan, Australia and Hong Kong) be restricted by law. Applications for shares (if any) will only be considered on the terms of the final application terms if and when issued. This Company Presentation has not been and will not be reviewed or registered with any public authority or stock exchange.

• This Company Presentation and the information contained herein is strictly confidential and may not be distributed, reproduced or used, in whole or in part, without the consent of the Company and may not be used for any purpose other than the evaluation of the business of the Company by the person to whom this Company Presentation is delivered.

• The Company does not make any representation or warranty (whether express or implied) as to the correctness or completeness of the information contained herein, & the Company nor any of its respective parent or subsidiary undertakings or any such person’s affiliates, directors, employees, representatives or advisors assume any liability connected to the Company Presentation and/or the statements herein.

• The contents of this Company Presentation are not to be construed as financial, legal, business, investment or tax advice. Each recipient should consult with its own financial, legal, business, investment and tax advisers as to financial, legal, business, investment and tax advice. By attending or receiving this Company Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis & be solely responsible for forming your own view of the potential future performance of the Company’s business & an investment in the Company. An investment in the Company involves significant risks, & several factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by information in this Company Presentation.

• Included in this Company Presentation are various “forward-looking statements”, including but not limited to statements regarding the intent, opinion, belief or current expectations of the Company and/or its management with respect to, among other things, (i) goals and strategies, (ii) plans for new business development, (iii) marketing plans and the Company’s target markets, (iv) evaluation of the Company's markets, competition and competitive position, and (v) trends which may be expressed or implied by financial or other information or statements contained herein. Such forwardlooking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance and outcomes to be materially different from any future results, performance or outcomes expressed or implied by such forward-looking statements.

• The distribution of this Company Presentation and the offering, subscription, purchase or sale of shares, issued by the Company in certain jurisdictions is restricted by law. Persons into whose possession this Company Presentation may come are required to inform themselves of and to comply with all applicable laws and regulations in force in any jurisdiction in or from which it invests or receives or possesses this Company Presentation and must obtain any consent, approval or permission required under the laws and regulations in force in such jurisdiction, and the Company shall not have any responsibility or liability for these obligations. This Presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction to any person to whom it is unlawful to make such an offer or solicitation to in such jurisdiction. The Company’s Securities have not been and will not be registered under the U.S. Securities Act of1933, as amended (the "Securities Act") or the securities laws of any state of the United States.

• The Company Presentation is made and reflects views as of August 2021. As a recipient of the Company Presentation, you accept that the information contained herein may be subject to changes. The Company does not intend, and does not assume any obligation, to update or correct any information included in this Company Presentation.

• This Company Presentation is subject to Australian law. Any dispute arising from this Company Presentation is subject to the jurisdiction of the Australian courts.

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