Pirie Torrens Project

Six Petroleum Exploration Licence Applications
~53,000 km² | Royalty Exposure

The Pirie Torrens Project comprises six Petroleum Exploration Licence Applications (PELAs) located in South Australia, covering approximately 53,000 square kilometres. The project area has a long history of hydrocarbon exploration, dating back to 1956, when Santos was established to drill for oil at Wilkatana. Historical drilling across the region has confirmed the presence of oil.

Lakes Blue Energy has entered into an agreement with Gehyra Flux Pty Ltd (Gehyra), under which Gehyra has assumed ownership of the six PELAs and is responsible for progressing them through to granted Petroleum Exploration Licences (PELs). This includes management of native title negotiations and associated approvals.

Under the terms of the agreement, Gehyra will fund and undertake all exploration activities across the PELs, targeting hydrogen, helium, and petroleum. Lakes retains a royalty interest in any future production:

• 2.5% royalty on the value of any hydrogen or helium produced
• 3.5% royalty on the value of any petroleum produced

In addition to the royalty interests, Gehyra has agreed to make two milestone payments to Lakes:

• $350,000 payable on the earlier of Gehyra achieving official ASX quotation or November 2025
• $1.0 million payable upon the announcement of continuous commercial production of either helium or petroleum

The arrangement provides Lakes with long-term exposure to a large, early-stage exploration footprint in South Australia, without the need for direct capital expenditure, and potential upside in the event of a commercial discovery.