Ann: Operations update, page-3

Elixir Energy Limited (“Elixir” or the “Company” is pleased to provide an update on operations in its 100% owned Nomgon IX CBM PSC. Adsorption laboratory results from the Nomgon 2 core-hole well have now been provided to the Company from a SGS laboratory in Beijing (COVID related restrictions led to some months of delay compared to normal processes in delivering samples to the lab – some final results are still to follow). Consistent with the Nomgon-1 well, the results indicate the lower 100 series coals at Nomgon 2 are fully gas saturated. This should greatly reduce the cost and other issues associated with water handling in future testing and production phases.

Elixir’s Managing Director, Mr Neil Young, said: ”The consistent adsorption result from Nomgon-2 indicates that the earlier high gas saturation levels from Nomgon-1 were not a one-off and this is already feeding into our production testing plans for next year. COVID has been a universal factor for all of us in 2020 and although Elixir (and Mongolia) has generally been impacted much less than others, shutting in our operations for a month or so in the midst of the Mongolian winter is ultimately a prudent move. All 7 wells drilled this year intersected coal and we are already advancing the processes and plans required to hit the ground running in the New Year. Our planned technical program for 2021 will greatly expand upon 2020’s excellent work.”