Botala Energy Ltd. provided the following update on the operational programme underway on the Serowe CBM Project. Spudding the Serowe-7 has been delayed due to poor weather conditions and essential rig repairs. The rig will remain on location, and the well will now be spudded in January 2023 targeting the week commencing the 18 January.

Further work will be completed over the break period on the integration and re-interpretation of the Audio Magneto telluric (AMT) geophysical survey and gravity surveys results with the Serowe-6 well. Flow-testing of Serowe-3 continues with the water level now drawn down to 220m from the top of the coals and an average water flowrate increasing to 58 bbls/day over the period 1st December to 17th December. Gas bubbles have been seen at surface within the produced water.

Logging results of the Serowe-6 well indicate 30m of coal seams have been encountered, results of the Nuclear Magnetic Resonance (NMR) have determined the estimated average gas content in the Serowe Seam of 2.44 m3 per tonne of coal, this is in line with the average seen to date. The Lower Morupule estimated average gas content was lower than the regional average. Further details in respect of Botala's drilling programme are set out in Sections 2.6 and 3.7 of the Prospectus.