TMK Energy Limited provided an update on the activities at the Gurvantes XXXV CSG Project in the South Gobi Basin in Mongolia. TMK recently completed the acquisition of two 10km 2D seismic lines within the Gurvantes XXXV Project to further define future exploration locations to continue to de-risk the significant 2U Prospective Resource already independently assessed by Netherland, Sewell and Associates (NSAI). The seismic lines were acquired over areas where coal seams are exposed at shallow depth and will aid in the planning of future exploration drilling programs. The first 10km 2D seismic line was acquired across the Noyon Syncline field in the north of the Gurvantes XXXV Project area, where coal units have been mapped on both the north and south limbs of a broad syncline striking east-west for over 80km.

The second 10km 2D seismic line was acquired in the Khukhuzokh field targeting coal units exposed at surface, interpreted to be an extension of coal units from the Nariin Sukhiat field which was the focus of this year's successful drilling program which delivered a 2C Contingent Resource of approximately 1.2TCF. Preparation for the upcoming Pilot Well Program is well advanced with design work complete and tendering for contract services nearing completion. The Pilot Well Program will include the drilling of up to three production wells in proximity to the location of the Snow Leopard-02 (SL-02) well.

The results from SL-02 provide a high degree of confidence in achieving a successful outcome from the pilot well program. Subject to Talon Energy Limited (Talon) exercising its option to proceed to Stage 2 of its farm-in agreement with the Company, the Pilot Well Program will be primarily funded by Talon. Talon is required to exercise its option to proceed to Stage 2 on or before 25 December 2022 and has advised the Company that it expects to do so.

Drilling of the pilot production wells is expected to commence mid First Quarter 2023.