Ann: MOU to Investigate Technology- Convert Solid Fuels to Energy, page-260

AustChina Holdings Limited (ASX: AUH) wishes to advise that it has entered into a non-binding Memorandum of Understanding with Fortress Capital Limited to conduct due diligence on a new technology that could enhance AustChina’s energy portfolio through the conversion of solid fuels including coal, municipal household and commercial waste, biomass, and other material to generate cleaner environmentally responsible electricity. This process has the potential to reduce carbon emissions and utilise municipal household and commercial waste that would otherwise go to landfill while producing energy for its own purposes or for sale to the electricity grid. AustChina will, after completion of the due diligence by January 2022, determine the applicability of the technology, and optimal application of the technology for the advancement of its energy portfolio. Should the company accept that the technology will be beneficial, it will secure the exclusive rights to the technology within Australia, all countries in the Middle East and will have first right of refusal to any territory outside the exclusive territory. AustChina has a JORC coal resource at its Blackall project of 1.3 billion tonnes of which 30 million tonnes is an Indicated Resource and the remainder Inferred Resource (ASX: “Updated Coal Resource Statement for Blackall Project” June 16, 2020.) The company has been exploring methods for best use of its coal resource at Blackall.