VOLT GROUP LIMITED — Capital/Financing Update 2014

Jan 12, 2014

Enerji
Limited ASX
Announcement

(ASX: ERJ )

13
January
2014

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New Funding

• $300,000 in funding has been secured from long-term Enerji investors.

• • $290,000 in R&D rebates budgeted for February and April.

• RM Corporate Finance Mandate no longer required.

• Further $180,000 in annual cost savings is obtained.

• Discussions proceeding for equipment financing.

Enerji has progressed well against its strategic plan and progress remains on-track. An organisational restructure has been completed and the product strategy further optimised for the purpose of expediting commercial projects.

The main focus of management is on the rollout of new revenue producing projects.

In response to its recent accomplishments and progress, Enerji is receiving renewed investor interest and management has a favorable view of the companies funding prospects. Along with the R&D refund the current funding position provides a solid base for the company over the coming months and the anticipated conclusion of the funding strategy.

The secondary focus is on the funding strategy, which has been very successful and is the subject of this update.

Equipment finance is not covered by the main funding strategy but is being separately pursued and any equipment funds will be applied to projects.

Funding Strategy

R&D Refund

Management’s target for securing commercial projects is much sooner but a prudent strategy is being pursued to fund Enerji’s operating costs through to January 2015. This funding is planned to come from a range of measures with planning to be finalised at the end of January.

Enerji is pleased to announce that it has secured new cash funding commitments totaling $300,000, which have been received and will be applied to project development costs and working capital. Enerji is especially pleased that this funding has been secured without any commissions or fees.

The funding is under the convertible note facility approved at the November General Meeting of shareholders.

The parties involved are long standing investors in Enerji and have endorsed the company’s current strategies.

As routinely reported, a material amount of the work that Enerji has undertaken is self-assessed as qualifying for the Ausindustry/ATO Research & Development Tax Incentive Program.

The amount of the rebate for the twelve months to December 2013 is estimated to be $1,000,000. The amount of the R&D rebate is calculated by Enerji and independently reviewed by a global leader in tax and advisory services. The amount is the basis for a tax refund claim when lodged as the 2013 tax return in April 2014.

Enerji utilises a factoring facility with a leading Australian bank to secure early access to a portion of the rebate amount. For the nine months to September 2013 Enerji had received $710,000 under this facility. Enerji expects to receive the estimated remaining $290,000 of the rebate amount via a (relatively small) factoring payment in February and the balance in April 2014.

Enerji
Limited (ASX: ERJ )

**ASX

Announcement**

13
January
2014

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RM Corporate Finance Mandate

Powerbox modules. The equipment is presently in storage with Opcon pending final payment.

Enerji executed a Capital Raising and Corporate Advisory Mandate with RM Corporate Finance on 2 September 2013.

The timing for Enerji to secure equipment finance will depend upon the conditions that are obtained.

With the subsequent success of Enerji’s management in securing funding support and executing its funding strategy, Enerji no longer has a need for the Mandate and will not utilise it further.

Colin Stonehouse CEO and Managing Director

Geoffrey Reid Company Secretary

Cost Minimisation

Enerji Limited +61 8 9268 3800 www.enerji.com.au

Enerji continues to pursue prudent cost minimisation with a further $180,000 in annual cost savings since the update posted on 18 December 2013.

About Enerji

Enerji Limited is a clean power company focused on delivering waste heat to power systems.

Equipment Finance

The technology transforms waste heat into electricity and therefore creates significant energy cost savings and reduced CO2 emissions.

Enerji is presently in discussions with leading Australian banks with regard to equipment financing of the following:

Carnarvon (book value) 4 Turbines1	$3.6 million $4.0 million
	$7.6 million

1 Payment balance due (est.) $2.0 million

Enerji’s equity $5.6 million

Carnarvon is a pilot plant and the actual incurred cost was greater than what is now projected for the commercial projects in development. For this reason the value of Carnarvon has been impaired with the book value reflects the estimated value of reusing the equipment.

The four turbines indicated above comprise two turbine/generator skids (the major component of Powerbox modules), and two complete