Interim Report Dec 2024

Interim Report

for the half-year ended 31 December 2024

Corporate Directory

Gas flow from Stage 1 Lorelle Sandstone post stimulation

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Directors' Report

DIRECTORS

The names of the Directors of Elixir Energy Limited in office during the financial period and at the date of this report are:

Other than as stated above, each Director held office from 1 July 2024 until the date of this report.

PRINCIPAL ACTIVITIES

Elixir Energy Limited and its subsidiaries ("Group") is an oil and gas Group focussed on gas appraisal in

Queensland, coal bed methane ("CBM") exploration and development in Mongolia; and renewable projects

in Mongolia. Further details are provided in the Review of Operations.

DIVIDENDS

No dividends have been declared, provided for or paid in respect of the financial period ended 31 December 2024 (2023: Nil).

REVIEW OF OPERATIONS

Operating Results

For the financial period ended 31 December 2024, the Group recorded a net loss from continuing operations after tax of $1,803,195 (December 2023: $397,291). The loss is higher than the prior period, primarily due to Project Grandis data sharing net income of $nil (December 2023: $1,000,000), higher interest expenses $376,000 (December 2023 $nil), higher share-based payments $288,772 (December 2023: $51,385), offset by lower general administration expenses $190,944 (December 2023: $440,048), and lower compliance costs $287,003 (December 2023: $370,230).

At 31 December 2024, the Group held cash totalling $2,685,051 (June 2024: $7,665,422).

Operations Review

During the period, the Group's primary focus was on drilling the Daydream-2 appraisal well in its Grandis Gas Project in Queensland and on ongoing appraisal in its 100% owned Nomgon IX CBM Production Sharing Contract (PSC) in Mongolia.

Australian Gas Project

Elixir has a 100% interest in petroleum exploration licences ATP 2044 and ATP 2077 located in Queensland (the Grandis Gas Project). These tenements are located proximate to the Wallumbilla gas hub and can access domestic and international gas markets.

During the period:

• Operations at the Daydream-2 appraisal well at ATP 2044 were concluded.
• Flow tests were conducted from various formations in this well and for instance, gas was flowed from the deep coals in the Taroom Trough for the first time.
• A MOU was executed with Australian Gas Infrastructure Group (AGIG) over new gas infrastructure requirements for the Taroom Trough.
• Elixir was formally granted ATP 2077 - which immediately added 175 Bcf of new contingent resources, which was subsequently increased to 712 Bcf.

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All work was undertaken safely, in accordance with local community expectations and without environmental or other negative incidents.

The Daydream-2 appraisal well was again the key focus for Elixir during the period. The considerable successes of this program (albeit with some ebbs and flows typical of an early stage appraisal program) have provided the Company with a very strong platform to continue to de-risk the Grandis Project.

Flare at Daydream-2

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Mongolian Gas Project: Nomgon

The Group has a 100% interest in the Nomgon IX Coal Bed Methane ("CBM") profit Sharing Contract ("PSC"), located proximate to the Chinese border in Mongolia's South Gobi region.

The PSC was entered into with the Mongolian Government in September 2018 and has a minimum ten- year exploration period and a thirty-year (extendable) production period. During the quarter the main operational focus area remained the ongoing production testing at the Nomgon Pilot Project. De-watering of the coals is ongoing, but has not yet reached critical desorption pressure.

On the strategic level, Elixir is undertaking negotiations with respect to the potential farm-out/down of the Nomgon PSC. These are reasonably well advanced but are not closed at the date of this report.

All work was undertaken safely, without environmental incident and working closely with local communities.

Mongolian Renewables

The renewable asset base built up by Elixir to previously support the Gobi H2 green hydrogen project in Southern Mongolia is now being reviewed for its potential contribution to growing local mining and grid customers for cleaner energy and the Company is engaging with a number of potential partners to facilitate that.

Other projects

There have been no changes to other projects held by the Group during the period.

CHANGES IN CAPITAL STRUCTURE

During the period, 62,500,000 Elixir Energy Ltd shares, 15,625,005 attaching free Listed Options on a one for four basis and 3,125,000 Listed Broker Options were issued via the August 2024 Placements. In addition, 331,933 shares were issued following the exercise of 331,933 Listed Options. No other transaction took place that would impact the capital structure of the Group.

PERFORMANCE RIGHTS AND OPTION

During the period, 2,000,000 Performance Rights were issued to the Managing Director, Mr Neil Young. and 3,400,000 Performance Rights were cancelled as expired unvested.

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SIGNIFICANT CHANGES IN STATE OF AFFAIRS

Other than those events noted above, there were no other significant changes in the state of affairs of the Group during the period that requires separate disclosure.

EVENTS SINCE THE END OF THE FINANCIAL PERIOD

On 11 February 2025, the Company announced a material expansion of its Grandis Project in the Taroom Trough, Queensland, through the following elements:

1. The execution of two Farmout Agreements with a wholly owned subsidiary of Santos Ltd ("Santos") over two 100% owned exploration licences in the Taroom Trough - ATP 2056 and ATP 2057.
2. The booking of independently certified contingent resources (2C) of 1.2 trillion cubic feet equivalent
   (TCFE) from ATP 2056. Elixir's total 2C contingent resource in the Taroom Trough is now 3.0
   TCFE.
3. A new equity capital raising of upto $9 million to fund the farmin work; being a $7 million for a Placement and upto $2M from a Shareholder Placement on the same terms as the Placement.

On 17 February 2025, the Company issued 199,468,467 fully paid ordinary shares and 99,734,223 free attaching listed options (EROB). The Company raised $7 million under the Placement.

There are no other material events occurring after the end of the reporting period to disclose.

AUDITOR'S INDEPENDENCE DECLARATION

The Auditor's independence declaration is included on page 8 of the financial report.

Signed in accordance with a resolution of the Directors made pursuant to s.298 (2) of the Corporations Act

2001.

Managing Director

Adelaide, South Australia

19 February 2025

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INDEPENDENT AUDITOR'S REVIEW REPORT

TO THE MEMBERS OF ELIXIR ENERGY LIMITED

Report on the Half-Year Financial Report

Conclusion

We have reviewed the half-year financial report of Elixir Energy Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 31 December 2024, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the half- year ended on that date, material accounting policy information and other explanatory information, and the directors' declaration.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the accompanying half-year financial report of the Group does not comply with the Corporations Act 2001 including:

1. Giving a true and fair view of the Group's financial position as at 31 December 2024 and of its financial performance for the half-year ended on that date; and
2. Complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

Basis for conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity. Our responsibilities are further described in the Auditor's Responsibilities for the Review of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to the audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001 which has been given to the directors of the Company, would be the same terms if given to the directors as at the time of this auditor's review report.

Material uncertainty relating to going concern

We draw attention to Note 1 in the financial report which describes the events and/or conditions which give rise to the existence of a material uncertainty that may cast significant doubt about the Group's ability to continue as a going concern and therefore the Group may be unable to realise its assets and discharge its liabilities in the normal course of business. Our conclusion is not modified in respect of this matter.

BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of A.C.N. 050 110 275 Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and A.C.N. 050 110 275 Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.

Responsibility of the directors for the financial report

The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is true and fair and is free from material misstatement, whether due to fraud or error.

Auditor's responsibility for the review of the financial report

Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group's financial position as at 31 December 2024 and its performance for the half-year ended on that date, and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

BDO Audit Pty Ltd

Andrew Tickle

Director

Adelaide, 19 February 2025