Double Speak on Funding, page-5

Redeer,

Have looked at the Quarterly..not sure I entirely share your concern?

Relevant part from quarterly:

"The German ECA, Euler Hermes, has provided indicative terms based on German content from the involvement of
TNG’s long-standing strategic engineering partner, the major German engineering firm, SMS Group.

Key Points
• Federal Republic of Germany Export Credit Agency, Euler Hermes, issues Letter of Interest including
indicative key terms for German ECA financing of A$300 million.
• Letters of Interest also received from seven Australian and International Commercial and Investment
Banks.
• The support received from Euler Hermes and Tier-1 banks follows on from the conditional Letter of Support
received from Export Finance Australia, Australia’s ECA, for a debt facility of up to A$300 million.
• This brings the current total conditional Letters of Support / conditional Letters of Interest from
Government (Australian and German) related funding sources to A$600 million.
• The Company is still progressing processes with other Government related potential funding sources.
• KPMG Corporate Finance and Germany’s KfW IPEX-Bank GmbH supported TNG in achieving these landmark
financing milestones.

2. As outlined in Euler Hermes’ Letter of Interest:
1. Transaction Description: In-principle support, under the export credit guarantee scheme of the Federal
Republic of Germany, for an amount of A$300 million based on the procurement of Process Equipment
from SMS Group;
2. Contract value: German portion of the Project costs of A$300 million;
3. Maximum repayment period: in accordance with the conditions of the OECD Arrangement on Officially
Supported Export Credits (High Income Countries); and
4. Cover: 95% of the covered amount, depending on the conditions for the specific cover."

However, what is clear is that the M$300 from Euler Hermes is directly related to the "German portion of the Project costs of A$300M". So, the indicative debt facility financing is only based on the estimated SMS cost portion related to the Project proceeding. This clearly suggests that it would be tied to SMS Mt Peake Capex requirements only (read refinery). ie. The Germans are supporting the German involvement only.

Maybe the verbal licence of saying "This brings the current total conditional Letters of Support / conditional Letters of Interest from Government (Australian and German) related funding sources to A$600 million." conveys a solid funding financial position to SH but which is yet to be secured & is only reflected in Letters of Intent ?

This is my quick take on reviewing your post. Have I missed something?

Jvest