NEURIZER LTD — Investor Presentation 2016

Sep 6, 2016

Electricity Focus

September 2016

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Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation

www.lcke.com.au

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Disclaimer

This presentation has been completed by Leigh Creek Energy Limited. It may contain forward looking statements that are subject to risk factors associated with the energy industry. It’s believed that the expectations reflected in these statements are reasonable, but they may be affected by a variety of changes in underlying assumptions which could cause actual results or trends to differ, including but not limited to: price fluctuations, actual demand, currency fluctuations, drilling & production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal & regulatory developments, economic & financial market conditions in various countries & regions, political risks, project delay or advancement, approvals & cost estimates amongst other items, & the cumulative impact of items.

This presentation may also contain non-IFRS measures that are unaudited, but are derived from & reconciled to the audited accounts. All references to dollars, cents or $ in this presentation are to Australian currency, unless otherwise stated.

Mineral Resource Statement

Estimates of Mineral Resources reported in this announcement were initially reported & released to the ASX on 8 Dec 2015. We are not aware of any new information or data that materially affects the information included in the 8 Dec 2015 announcement & all the material assumptions & technical parameters underpinning the estimates in that announcement continue to apply & have not materially changed.

Gas Resources Statement

Gas Resources reported in this announcement were initially reported & released to the ASX on 8 Jan 2016. We are not aware of any new information or data that materially affects the information included in the 8 Jan 2016 announcement & that all the material assumptions & technical parameters underpinning the estimates in that announcement continue to apply & have not materially changed. All estimates are based on the deterministic method for estimation of petroleum resources.

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Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation

www.lcke.com.au

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Risk and Solution

South Australia (SA) faces severe Energy risks.

LCK ideally placed to bring Reliable, Affordable Energy to SA

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Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation

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East Coast Electricity Market

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Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation

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National Electricity Market - NEM

SA most at risk:

• End of grid

• Highest

• renewables

• Reliant on

• interconnect

• Gas shortages

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Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation

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Australia Relies on Fossil Fuel Base Load Power

Renewables (excl Hydro) aren’t reliable (yet).

Aust Electricity Generation 2013 / 14

7%

8%

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85%
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Base Load - Fossil Fuels Base Load - Hydro

Intermitent - Wind / Solar / Other

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Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation

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South Australian Electricity Market

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Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation

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SA – only State without Reliable Base Load Power

????

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Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation

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SA – Base Load Coal closed May 2016

21% supply lost with closure.

Gas fired (37%) under threat of rising gas prices and forecast shortages.

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Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation

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SA Generation Mix reliant on Wind

SA has highest Renewable Energy mix in Australia.

This has led to :

• power shortages,

• higher prices,

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• dependence on Victorian brown coal generation (via interconnectors)

Further gas shortages predicted

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Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation

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SA Dependence on Electricity Imports

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Whilst interconnectors have expanded, coal-fired electricity in Victoria is to be retired.

Image: LCEP Laydown area July 2015 Up to a quarter of SA’s electricity has been imported.Image: PEL 650 looking north towards Lobe C

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Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation

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SA - Highest Electricity Prices in the Country

SA power prices to rise further with high summer demand.

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Futures curve lifted over recent months across the NEM but Image: LCEP Laydown area July 2015 remain much higher in SA. Image: PEL 650 looking north towards Lobe C

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Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation

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SA Electricity Prices - Jumped

Port Augusta base load coal power station closed.

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Figure: Data AEMO website – Australian Energy Market Operator

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Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation 13

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SA Power Demand varies seasonally

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Black outs more
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likely in Summer
Hot day
Cold day
Mild day
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Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation

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Network Stability Crucial – or System fails

Network must be balanced and respond instantly to;

• Supply changes (generation and transmission)

• Wind and Solar generation intermittent.

• Customer load changes; and

• Import / Export changes via Interconnectors – Victoria.

Voltages, currents and frequency must be maintained within defined limits.

Network imbalances can quickly lead to widespread blackouts.

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Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation

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Electricity Supply Concerns

Industrial customers concerned about affordable, reliable electricity supply.

Exacerbated by recent closure of Northern Power Station which was providing baseload power.

This was the last coal fired power station in South Australia.

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Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation

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LCEP – Power Intentions

Opportunities for baseload and peaking power.

Baseload

LCEP Internal ~150-200MW External – aim to secure long term contracts for >150 MW and up to ~900MW

Peaking Expect opportunity is 100’s of MW

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Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation

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LCEP – Power Fuel

ISG produces a “syngas” which contains 3 main fuels; Methane – CH 4 Carbon monoxide – CO Hydrogen – H2

Many power stations have been designed to burn fuel derived from coal gasification.

Syngas quality

• Air blown ISG has a high nitrogen content (low cost)

• Oxygen blown ISG has higher calorific value (but higher cost).

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Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation

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Peaking Power

Is now demand for “ dispatchable power ” at short notice.

LCEP has low fuel costs vs traditional gas / diesel.

CQ Partners study complete.

– Historic and likely frequency, duration and amplitude of events.

This feeds into pre feasibility studies ( PFS ).

Also revenue potential from hedge products and network support.

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Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation

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Conclusion

South Australia faces severe Energy risks.

LCK ideally placed to bring Reliable, Affordable Energy to SA

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Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation

www.lcke.com.au

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