Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-2

Can you believe these galahs????

The current situation in relation to the LOI (as reported on the 24th January 2023) is being resolved, and Leaf is keen to move forward with FGA. FGA have advised Leaf that they are working to clarify this matter and remain committed to working with Leaf to secure an appropriate offtake agreement. Given that the LOI is non-binding and was always intended as a starting basis to explore opportunities facilitated by FGA for the offtake of wood pellets with a reputable buyer, Leaf has agreed to waive the precondition that in the subscription agreement for the placement for a suitable LOI to be provided. This precondition has also been waived by FGA and FT and therefore the placement will now only be subject to shareholders approval. Leaf believes the market for wood pellets is strong and there are many opportunities in both the local NZ market and international market for offtake contracts and FGA and FT can help facilitate those opportunities on potentially better terms and conditions.