STRIKE ENERGY LIMITED — Capital/Financing Update 2021

Sep 14, 2021

ASX: STX The Company Announcement Officer ASX Ltd via electronic lodgement

Project Haber paves the way to become regional green hydrogen and carbon sink

• Strike collaborates with ATCO and Infinite Blue Energy for proposed green hydrogen supply to Project Haber.

• Once operational, Project Haber has the potential to be Australia’s largest industrial hydrogen consumer and potential carbon sink.

• Project Haber designed to produce and consume 141 ktpa of hydrogen, providing considerable opportunity for long term collaboration and growth with future WA domestic green hydrogen suppliers.

Strike Energy Limited (Strike – ASX: STX) is pleased to provide an update on Project Haber, Strike’s proposed 1.4 mtpa urea development based in Geraldton in Western Australia.

Green hydrogen industry acceleration

Strike is looking to establish itself as a domestic leader in hydrogen market development as it works to integrate green hydrogen at Project Haber, initially via its own dedicated on-site 10MW electrolyser. Once operational Strike will produce 1,825 tpa of green hydrogen, or around ~2% of the total hydrogen feedstock of the plant. These hydrogen supplies combined with Strike’s lower carbon natural gas from the Greater Erregulla region will produce what is projected to be some of the lowest carbon urea fertiliser available in the market.

Over time, Strike will look to increase the green hydrogen feedstock of the plant with other sources of green hydrogen from developers and suppliers in the Mid-West region. In pursuit of

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this and to further lower the carbon intensity of Project Haber’s urea production, Strike has entered into a separate non-binding memorandum of understanding (MOU) with each of ATCO and Infinite Blue Energy (IBE) for collaboration on Mid-West infrastructure and importantly, green hydrogen offtake.

These agreements will facilitate alignment between the parties on the key infrastructure priorities for the Mid-West region and to petition for their development with the WA government, who is a major supporter of the State’s aspiring hydrogen economy. The development of these key pieces of infrastructure (power transmission, desalinated water, pipeline corridors etc) also has the potential to improve the scale and speed of other projects in the region as the WA hydrogen economy looks to grow.

Project Haber is positioned to be at the centre of this growth with the potential to be the biggest industrial manufacturing opportunity for domestic green hydrogen in the country, via being a ready buyer and consumer for green hydrogen offtake.

Project Haber to transition into a carbon sink

At the upper limits based on engineering from Technip Energies, Project Haber could displace approximately 139 kilo tonnes per annum (ktpa) or 390 tonnes per day (tpd) of methane linked hydrogen with green hydrogen sourced from the Mid-West.

Once Project Haber exceeds 40% of green hydrogen in its hydrogen feedstock mix the plant will be required to start importing carbon dioxide in order to continue manufacturing urea fertiliser. This creates an exciting opportunity for Project Haber to import approximately 500 ktpa of CO2 from neighbouring carbon intensive and hard to abate heavy industry, therefore, acting as a sink to productively utilise third party industrial emissions.

CEO & Managing Director, Stuart Nicholls said:

“Project Haber continues to progress as the economics, carbon and collective benefits combine to make a compelling and beneficial investment for Strike, WA and Australia’s agricultural and farming communities.

“Progression of these MOUs with two of the key green hydrogen developers in the Mid-West is a great step in accelerating the WA hydrogen economy.

“Incorporating green hydrogen in Project Haber’s urea production process will enable Strike to produce some of the lowest carbon urea possible and potentially create one of Australia’s largest carbon sinks, moving Strike into carbon negative territory.”

Infinite Blue Energy

IBE’s green hydrogen foundation project at Arrowsmith is located North of Perth and approximately 100km South of Project Haber. The project is forecast to produce 25tpd expanding to 265tpd. Green hydrogen will be produced by the IBE facility using renewable energy from solar (95MW) and wind (114MW) with expansion to 3GW, that displaces 118,000 and 1,300,000 tonnes respectively per annum of CO2 emissions. The project is expected to come online in 2022 and serve the domestic WA markets with its proposed expansion being aligned on timing to support the ongoing growth of green hydrogen consumption at Project Haber.

ATCO

ATCO in conjunction with Australian Gas Infrastructure Group (AGIG) are developing the Clean Energy Innovation Park (CEIP). The CEIP is intended to be Australia’s first commercial scale green hydrogen supply chain, including a 10MW electrolyser capable of producing up to 4.3 tonnes of hydrogen per day, along with storage.

The CEIP is planned to be co-located with the 180MW Warradarge Wind Farm in Western Australia’s Mid-West, which will provide the renewable energy to power the electrolyser.

Hydrogen generated will then be transported via truck to end users of the green hydrogen produced at the facility. The CEIP has recently received $28.7 million in funding from the Australian Renewable Energy Agency (ARENA) as part of the recent Renewable Hydrogen funding round.

The MOUs Strike has entered into with ATCO and IBE indicate an intention for Strike to purchase some of the hydrogen produced from their Mid-West green hydrogen projects, for use in Project Haber.

This announcement is authorised for release by the Managing Director and Chief Executive Officer in accordance with the Company’s Continuous Disclosure Policy.

Investor Contact

Georgina Fraser

Investor Relations Manager Email: georgina.fraser@strikeenergy.com.au

Media Contact

Paul Ryan ( Citadel-MAGNUS) Phone: 0409 296 511 Email: pryan@citadelmagnus.com

Forward looking statements

Statements contained in this release, including but not limited to those regarding the possible or assumed future costs, projected timeframes, performance, dividends, returns, revenue, exchange rates, potential growth of Strike Energy Limited, industry growth, commodity or price forecasts, or other projections and any estimated company earnings are or may be forward looking statements. Forward looking statements can generally be identified by the use of words such as ‘project’, ‘foresee’, ‘plan’, ‘expect’, ‘budget’, ‘outlook’, ‘schedule’, ‘estimate’, ‘target’, ‘guidance’ ‘aim’, ‘intend’, ‘anticipate’, ‘believe’, ‘estimate’, ‘may’, ‘should’, ‘will’ or similar expressions. Forward looking statements including all statements in this presentation regarding the outcomes of preliminary and definitive feasibility studies, projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. These statements relate to future events and expectations and as such involve known and unknown risks and significant uncertainties, many of which are outside the control of Strike Energy Limited. Actual results, performance, actions and developments of Strike Energy Limited may differ materially from those expressed or implied by the forward-looking statements in this release. Such forward-looking statements speak only as of the date of this document. Refer to the ‘Summary of Key Risks’ section of the release titled “Equity Raising and Corporate Update April 2021” released to ASX on 15 April 2021 for a summary of certain general, Strike Energy Limited specific and acquisition specific risk factors that may affect Strike Energy. There can be no assurance that actual outcomes will not differ materially from these statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including the risk factors set out in this document.

The successful development of Project Haber is contingent on, among other things, the proving up of sufficient gas reserves at South Erregulla, the outcomes of FEED on Project Haber, access to finance and (where required) equity participation, securing urea offtake agreements, and obtaining all requisite regulatory and stakeholder permits, approvals and authorisations.

To the maximum extent permitted by law (including the ASX Listing Rules), Strike Energy Limited and any of its affiliates and their directors, officers, employees, agents, associates and advisers disclaim any obligations or undertaking to release any updates or revisions to the information in this document to reflect any change in expectations or assumptions; do not make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of the information in this document, or likelihood of fulfilment of any forward-looking statement or any event or results expressed or implied in any forward-looking statement; and disclaim all responsibility and liability for these forward-looking statements (including, without limitation, liability for negligence).

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