Elixir Model Rev.113 25/10/2022 Nomgon Pilot Drilled, page-50

Question from a first time poster, reasonably significant holder since 2019. With regards to the Mongolian project, we seem to be getting to a point where we can start cross-referencing data from other local projects, in particular, the Gurvantes XXXV project where they have just completed drilling three pilot wells, and have a 2C gas resource established at 1.2 TCF over an area extending to 60 sq km. Several things are apparent when considering this against the Nomgon project:

- The Gurvantes project benefits from having a significant historical drilling dataset from coal mining operations.

- Both projects (regardless of ultimate ownership) will be selling into the same markets (domestic and China) and have similar attributes concerning distance to market, proximity to infrastructure etc.

- Both projects will likely have a similar cost base.

- Both projects have similar logistics issues.

- Both projects appear to have similar-ish geology and coal/gas parameters with fully saturated gas.

If one was to be looking from a technical and cost perspective at why one might favour one project over the other, it seems to me that at present, there is very little to separate them. A question has been raised by one poster (O&G Planning, whose work it must be said is exemplary and of huge value I am sure to everyone) as to the nature of the water and gas pressure characteristics at Nomgon which are at present I believe unpublished. I am not sure what data is presently available for Gurvantes (noting of course that they have not commenced the pilot testing there yet).

Commentary and interviews etc by company personnel would appear to suggest that the Nomgon area is likely to support a commercial development. This is likely to extend over a reasonably extensive area, possibly in excess of 100 sq kms. This excludes of course, the remaining PSC area (total approx. 33,000 sq kms).

The question then is this: if the known coal / gas characteristics and parameters are similar for both projects, and the bulk of the operational issues and market opportunitiesare similar, why is the sentiment of one (Nomgon) trending down whilst the other appears to be viewed in a more positive light. I find this perplexing particularly as Nomgon has reportedly had some good initialsuccess from its pilot wells, and of course the acreage is four times that of the Gurvantes project. And that is completely ignoring the other two opportunities in Australia and Gobi H2. I can only put it down to the manner in which both projects are being reported and communicated, but I would be interested to hear any other suggestions, particularly from anyone with any CBM technical expertise and experience.