Ann: Progress Update on Power-CCS Project Development, page-2

FINALLY!!!

Huge step forward today and good news - this is not written by the KPO Board. This is PwC - They have the top Energy team in Canada, they have put in ~$500K of their own money to get this data room up and for no guaranteed return unless they close a deal. So they must be pretty confident. Hence before you dismiss this as lacking credibility because of the Boards inability to deliver on previous promises - its not the same authors!!!

I was worried the deal might end up being for $25M rather than $50M. So pretty excited to hear its $58M for 50%. And looking at the projected project returns its obviously a bloody cheap deal (which we have to accept because of our poor negotiating position). 6% development fee on a single $917M CAPEX project is $55Million - so thats the development fee KDP gets paid upon completion of a single plant - not sure whether that is at FID or project completion. Plus reimbursements, plus a 10% carried interest!

We were always going to need cash to get ourselves going so this bootstrapping approach was the only way given our low MC. But once the deal is done, i see very little impediment to the KPO transformation we have been waiting for

And the good news is PwC have set a short timeframe of only 1 month from today for offers to be in. Thats a month in the data room. But we know the major funders will have already been across this opportunity now for months as PwC will have been working their contacts.

Done some rough calculations and given 50% of KDP supposedly worth $58M that means, KPO should own an asset on its books worth the equivalent of 4cents to our SP given the shares on issue.

It makes a mockery of our current SP languishing below 1cent. I would expect a pretty stunning reversal over the next month so i'd say this is bargain basement territory. Risk reward at ~$10M MC KPO is a joke.

The good news is, if you look on screen, if we can clear 1cent quickly, and sellers start to believe, then we might see a pretty rapid trajectory back up?

Onwards and upwards, fellow suffering shareholders.