ADX Energy Ltd.: A$13.5 Million Institutional Placement

Wien (pta014/02.05.2024/10:27 UTC+2)

"Proceeds underpin the evaluation and testing of the Welchau gas condensate discovery, the ongoing development of the Anshof oil field and further gas exploration in Upper Austria"

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Key Points:

• Firm commitments received to raise A$13.5 million via a two-tranche placement to institutional and sophisticated investors.
• Strong demand from offshore and domestic institutional investors and family offices.
• Placement provides significant balance sheet strength to progress an extensive exploration and development program in Austria during the second half of CY2024 including the following activities:
  • Evaluation, data analysis and production testing of the Welchau-1 gas condensate discovery;
  • Assessment of exploration prospectivity and potential deepening of the Welchau-1 well;
  • Drilling of a gas exploration well in the ADX-AT-I licence;
  • Drilling, completion and tie-in of the Anshof-2A sidetrack well;
  • Gas processing upgrades including a CO2 reduction plant at ADX' Vienna Basin oil and gas fields; and
  • General working capital.

ADX Executive Chairman, Mr Ian Tchacos, said "The Board of ADX is delighted by the strong support for the placement and welcomes a number of new institutional and family office investors to the register. The level of investor support is an endorsement of the Company's exceptional growth opportunities in the heart of energy starved Europe.The funds raised enable ADX to confidently pursue a very active program including testing the Welchau-1 discovery, drilling an oil development well at Anshof, drilling a further gas exploration well in Upper Austria and potentially deepening the Welchau-1 discovery well to access further, deeper exploration potential."

ADX Energy Ltd (ASX Code: ADX) is pleased to advise that it has received firm commitments from sophisticated, institutional and professional investors to raise A$13,500,000 (before costs) via the issue of 128,571,429 new fully paid ordinary shares at an issue price of A$0.105 per share ("Placement Shares") ("Placement"). One (1) free-attaching option will be issued for every two (2) Placement Shares ("Placement Options"). The exercise price of the Placement Options is A$0.15 with an expiry date of 8 May 2026. ADX intends to have the Placement Options listed, subject to satisfying ASX requirements.

The Placement will take place in two tranches:

• Tranche 1 to raise approximately A$7.5 million via the issue of 71,428,572 New Shares and 35,714,286 Placement Options utilising the Company's placement capacity ASX Listing Rule 7.1 (27,720,784 Placement Shares and 35,714,286 Placement Options) and ASX Listing Rule 7.1A (43,707,788 Placement Shares) with settlement scheduled to occur on 7 May 2024; and
• Tranche 2 to raise approximately A$6.0 million via the issue of 57,142,857 New Shares and 28,571,428 Placement Options, subject to the requisite shareholder approval(s) to be sought at the upcoming Annual General Meeting (AGM) of the Company (subject to ASX approvals) to be held on 22 May 2024.

An addendum for the AGM will be dispatched to shareholders as soon as practicable.

Canaccord Genuity (Australia) Limited acted as the Lead Manager to the Placement.

Funds raised by the Placement will be used to fund the following asset activities;

• The evaluation and analysis of data from the recently completed Welchau-1 gas condensate discovery well leading to a post drill reassessment of Welchau's resource potential, as well as the planning and execution of production testing of the 450 metre gas column that was encountered based on gas shows;
• The assessment of the prospectivity of exploration potential below the current total depth of the Welchau-1 well and the potential deepening of the well;
• Planning, permitting and drilling of a gas exploration well in the ADX-AT-I exploration licence which will be jointly funded via a farmout with MND;
• The planning, permitting, drilling, completion and tie-in of the Anshof-2A sidetrack appraisal well which is expected to be produced via the recently installed and commission permanent production facility at the Anshof-3 drill site location;
• The upgrade of gas processing facilities including a CO2 reduction plant at ADX' Vienna Basin oil and gas fields; and
• General working capital.

For further details please contact:

Authorised for lodgement by Ian Tchacos, Executive Chairman

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Emitter:	ADX Energy Ltd. Ölzeltgasse 3/8 1030 Wien Austria
Contact Person:	Vesna Blazevic
Phone:	+43 676 6893465
E-Mail:	office@adx-energy.at
Website:	www.adx-energy.com
ISIN(s):	AU000000ADX9 (Share)
Stock Exchange(s):	Free Market in Berlin, Frankfurt, Hamburg, Munich, Stuttgart, Tradegate
Other Stock Exchanges:	Australian Securities Exchange (ASX), Sydney