TOWNSVILLE INDUSTRY BREAKFAST 4 September 2019

www.dsdmip.qld.gov.au Social: @GrowingQLD

Townsville Industry Breakfast September 2019

RENEWABLE ENERGY ON TAP The Climate Council Case Study: Kidston Genex at a glance

Kidston Clean Energy Hub ASX code: GNX Shares on issue: 401.8M Stage 1: 50MW Kidston Solar Project Market cap: $86M Stage 2: 250MW Kidston Pumped Storage Cash (21.08.2019): $18.8M Hydro Project & Stage 2 Kidston Solar Project Undrawn ARENA: $0.3M Stage 3: 150MW Kidston Wind Project Major Shareholders: Board & Management – 16% Asia Ecoenergy– 9% Institutional – 26% Jemalong Solar Other – 49%

50MW Jemalong Solar Project * Up to 19.99%, conditional upon shareholder approval and hydro financial close Corporate Portfolio

Kidston Stage 1 Status Counterparty Revenue Model 50MW Solar Plant Production 20-year Government Revenue Guarantee (since 2018) Selling into National Energy Market

K2-Hydro Status Counterparty Revenue Model Construction Long term rental over the pumped hydro 250MW Pumped Hydro expected assets. Genex has no exposure to energy (Genex 50% share) 2HCY19 prices through the project

K2-Solar Status Counterparty Revenue Model Feasibility To be confirmed Up to 270MW Solar Project To be confirmed (Genex 100% share)

Kidston Stage 3 Status Counterparty Revenue Model Feasibility To be confirmed 150MW Wind project To be confirmed

Jemalong Solar Status Counterparty Revenue Model 50MW Solar project Construction Merchant/Spot Corporate Timeline

Kidston Clean Energy Hub 2019 2020 2021 2022 2023 2024

Kidston 50MW Stage 1 Solar Stage 1 Operations (Ops)

Kidston 250MW Pumped Storage Hydro Construction Ops Stage 2*

Kidston Solar Stage 2 Construction Ops

Kidston 150MW Wind Stage 3 Feasibility Construction Ops

50MW Jemalong Solar Construction Ops

*Includes the construction of a new 275kV transmission line Genex - Rejuvenating the town of Kidston

• Kidston lies 280km North West of Townsville.

• The Gold Mine was the biggest gold producer in Australia, producing an average annual production between 200,000 and 300,000 ounces of gold.

• At its peak population in 1908 approximately 1700 people lived in the surrounding Kidston region. When the mine shut in 2001, the Kidston township fell to approximately 10 people leaving a huge scar on the land.

• Kidston site has been identified as having the highest solar irradiance in Australia – perfect for the development of solar technology.

• The old mine pits, now filled with water, provide the perfect opportunity for the development of the Kidston Pumped Storage Hydro Project (K2-Hydro) Kidston Gold Mine (1907 - 2001)

50MW Kidston Solar Farm Development (2016 - 2017)

Kidston Hub (2017 - 2100) Genex Power’s Commitment to North Queensland

• Genex Power is investing approximately $1 billion into North Queensland to develop the Kidston Renewable Energy Hub. - • K2-Hydro will generate over $500 million in public benefits – due to reduction in wholesale electricity prices.

• Construction of KS1 saw the 160 employees on site during peak capacity.

• 500+ direct construction jobs generated through the construction of the Kidston Pumped Hydro Project paired with upgrade of the 275Kv transmission line from Mt. Fox to Kidston.

• A further 500 further construction jobs from K2-Solar and K3-Wind taking the total to 1000+ jobs. • Genex Power prioritises local employment and subcontractors.

• Collaboration with Hinchinbrook and Etheridge Shire Council.

• Townsville: base for FIFO, port gateway for imported equipment. Genex – clean energy credentials

Clean Energy Total Generation Offsets CO2 production Houses Powered Production (Per Year) (Per Year) (Per Year)

KS1: 50MW 2019 120,000t of CO2 26,500 145,000MWh

KS1: 50MW 145,000MWh 2020 Jemalong: 50MW 226,510t of CO2 50,000 128,700MWh 370MW

1,056,700MWh 150MW 2. 1,2,3 2023 2. 240,000 250MW 525,600MWh 1,913,628t of CO2 1. 730,000MWh

1. Assumes K2-H dispatches once a day. 2. Based on a typical wind farm in the region with a of 40%. 3. Assumes K2-H pumps water using green energy. Russia Pumped storage hydro locations 1,200MW

Europe 46,000MW

Japan South Korea 28,000MW 4,700MW U.S. 22,600MW India 4,800MW China 32,000MW

Africa 1,500MW Wivenhoe, QLD Kidston, QLD 500MW 250MW Shoalhaven, NSW 240MW

Tumut-3, NSW Central & South America 1,800MW 1,000MW

Source: Energystorage.org Pumped Storage Hydro

Solar Farm Daylight Morning & Evening Night This process is repeated Water from the lower Water is released from Generates electricity Grid power is used each day to provide reservoir is pumped into the upper to the lower throughout the day to pump water into dispatchable and reliable the upper reservoir reservoir during peak the upper reservoir demand electricity Pumped Storage Hydro

▪ Mature technology – in use for over 130 years, with > 200 projects worldwide.

▪ Lowest cost of energy storage available. o 250MW Kidston Project with up to 8 hours of storage is ~15x more affordable than the cost of equivalent lithium-ion battery storage.

▪ Peak power generator – able to dispatch into peak periods.

▪ Can be integrated with renewables. o Perfect component to firm intermittent & volatile renewable generation.

▪ 80+ year project lifespan. K2-Hydro – Construction Ready

Long-term energy offtake and 50% equity investor in the project • Completing final due diligence. • Commencing final investment approvals process.

Genex equity investor • $25m share subscription agreement signed. • Technical support.

EPC Contractor/supplier of pump turbines • Binding EPC Contract with final negotiations, Early Works Stage 1 completed.

Transmission network service provider • Will construct and operate new 275kV transmission line from Kidston to Mt Fox. • Offer to Connect submitted. • GPS approved.

Critical infrastructure/coordinated project Strong financial position to execute on growth

• 20-year PPA with the Queensland State Government for 100% of the energy produced from the 50MW Kidston Solar Farm.

50MW • Jemalong Solar Farm will add a further 50MW of generational capacity to the portfolio. Construction to start H2 CY2019. Finalising debt funding through to production.

• The Pumped Hydro Project construction ready: • Long term offtake from EnergyAustralia, in final negotiations of approval; • NAIF $610 concessional debt funding; and • $25m Share Subscription Agreement with J-POWER.

• Up to $610m concessional debt funding from the Northern Australia Infrastructure Facility (NAIF) for the construction of H2-Hydro.

• $25m Share Subscription Agreement with J-POWER to fund Genex’s equity funding component for construction of K2-Hydro. Outlook

▪ KS1 steady state cash flow supported by long term contract.

▪ North Queensland

▪ 500+ jobs for 3 years. ▪ Local employment + subcontractor priority. ▪ $1b investment into North Queensland region. ▪ Townsville FIFO base and main port.

▪ K2-Hydro

▪ On track to be the first pump hydro project developed in Australia since 1980s. ▪ Strong partners with J-POWER, NAIF and EnergyAustralia. ▪ Funded with construction to commence CY2019 pending final approvals and transmission line arrangements.

▪ Financing and management in place to execute growth strategy. 22 Contact

Simon Kidston (Executive Director) James Harding (Chief Executive Officer)

Tel: +612 9048 8852 Tel: +612 9048 8855 Mob: 0414 785 009 Mob: 0439 139 179 Email: [email protected] Email: [email protected]

23 GENEX POWER (GNX) Disclaimer August 2019

▪ This document has been prepared by Genex Power Limited (“Genex” or “Company”) for the purpose of providing a company and technical overview to interested analysts/investors. None of Genex, nor any of its related bodies corporate, their respective directors, partners, employees or advisers or any other person (“Relevant Parties”) makes any representations or warranty to, or takes responsibility for, the accuracy, reliability or completeness of the information contained in this document to the recipient of this document (“Recipient”) and nothing contained in it is or may be relied upon as, a promise or representation, whether as to the past or future.

▪ The information in this document does not purport to be complete nor does it contain all the information that would be required in a disclosure statement or prospectus prepared in accordance with the Corporations Act 2001 (Commonwealth). It should be read in conjunction with Genex’s other periodic releases.

▪ This document is not a recommendation to acquire Genex shares and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek appropriate advice, including financial, legal and taxation advice appropriate to their jurisdiction. Except to the extent prohibited by law, the Relevant Parties disclaim all liability that may otherwise arise due to any of this information being inaccurate or incomplete. By obtaining this document, the Recipient releases the Relevant Parties from liability to the Recipient for any loss or damage that it may suffer or incur arising directly or indirectly out of or in connection with any use of or reliance on any of this information, whether such liability arises in contract, tort (including negligence) or otherwise.

▪ This document contains certain “forward‐looking statements”. The words “forecast”, “estimate”, “like”, “anticipate”, “project”, “opinion”, “should”, “could”, “may”, “target” and other similar expressions are intended to identify forward looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward‐looking statements. You are cautioned not to place undue reliance on forward looking statements. Although due care and attention has been used in the preparation of forward looking statements, such statements, opinions and estimates are based on assumptions and contingencies that are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance.

▪ Recipients of the document must make their own independent investigations, consideration and evaluation. By accepting this document, the Recipient agrees that if it proceeds further with its investigations, consideration or evaluation of investing in the Company it will make and rely solely upon its own investigations and inquiries and will not in any way rely upon this document.

▪ This document is not and should not be considered to form any offer or an invitation to acquire Genex shares or any other financial products, and neither this document nor any of its contents will form the basis of any contract or commitment. In particular, this document does not constitute any part of any offer to sell, or the solicitation of an offer to buy, any securities in the United States or to, or for the account or benefit of any “US person” as defined in Regulation S under the US Securities Act of 1993 (“Securities Act”). Genex shares have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States or to any US person without being so registered. PORT OF TOWNSVILLE

Proudly Supporting North Queensland for over 150 Years

JUNE 2019 Channel Upgrade Intermodal Terminal Eastport Development Truck Staging Area Berth 4 Cargo Terminal Berth 4 STS Crane Channel Upgrade Project - Current Progress

Awarded: Rock supply (partial) Environmental Studies Site prep & Accommodation (Partial)

To Be Awarded: Stockpile Management Rock wall construction Dredging & dredge support Reclamation Miscellaneous project support intermodal Intermodal Terminal Location Intermodal Proposed Layout Intermodal Terminal

➢ Currently in preliminary Design ➢ Cost circa $47 million ➢ Reach stackers or wide-span gantry crane? ➢ Development of hardstand pavement, rail, crane, access etc ➢ Construction procurement ~late 2020 East Port

9 Hectares of land developed for customer use and intermodal terminal

East Port Road will service the proposed East Port Development Lots

Southern Link Road will allow a safe access from Benwell Road to the development area East Port Development

Major Scope Elements: ➢ Geotech investigations ➢ Design – roads, services, drainage ➢ Earthworks, fill, consolidation ➢ Road and services corridor construction

Current Status: ➢ Design nearly complete ➢ Road works to commence early 2020 ➢ Coordination required with CUP access Truck Staging Area (Benwell Road) A combined truck-trailer lay-up and staging area to be constructed on Benwell Rd outside the port main entrance

Effective and efficient usage of the port road network - avoid congestion

Improved safety

Key Features: ➢ New paved and asphalted area for heavy trucks; ➢ New security perimeter fence; ➢ Guard hut (relocatable); ➢ Personal amenities (shower, toilet); and ➢ Lighting and security cameras. Truck Staging Area

Status: ➢ Design Currently Underway ➢ Construction 2020 $30M STS Crane & Cargo Terminal – Berth 4 SHIP TO SHORE CRANE

➢ Post-panamax size ➢ Currently under construction ➢ Operational Dec 2020

38 BERTH 4 CARGO TERMINAL

Berth 4

B4 Terminal Area

16,000m2

➢ Awarded to Formset Contructions ➢ Currently underway ➢ Completion Q1 2020 GETTING INVOLVED ➢ Unwaivering focus on providing opportunity for participation by local contractors and consultants ➢ Qld Government Procurement Policy ➢ QTender TOWNSVILLE PORT PROUDLY SUPPORTING NORTH QUEENSLAND FOR OVER 150 YEARS The LiXiA Project 4th September 2019 Early years: Computational Modelling The impact of mining downturn.

44 Challenges with Trillions of $ worth of ageing Infrastructure.

45 Collapse of Morandi Bridge: More than 30 people tragically killed.

46 Building structural integrity issues in NSW.

47 Failure of infrastructure assets poses serious public safety and economic risks.

48 The Opportunity: Applying a digital skin on infrastructure assets. Business Intelligence Rapid market CSIRO Pre- PWC & Data61 adoption of accelerator CSIRO monitoring platforms ON-PRIME Scoping Asset Integrity with QR, FMG and Management, business ARTC Our “big idea” in Asset intelligence, basic Integrity Management of engineering, and data Monitoring platforms the world’s aging but analytics employed in the field critical infrastructure

2014 2016 2018

The Rockfield Journey

2013 2015 2017 2019

Enterprise Connect JCU Internship with QUT Long Term Bridge Our PUKs & AI Monitoring with Hardware / software to Predicting localization of Data61 predict the latent Robust streaming damage in Bridges via capacity of steel assets advanced engineering “alerts” to disrupt AIM Robust systems in real time under robust analysis and vibration industrial loads techniques 30+ critical assets with sensors. Traditional sensors expensive for mass adoption. CSIRO ON sharpened our focus and

LiXiA was born.52 53 We are beginning the world’s transition to smart infrastructure with utility industry. A problem worth solving! Overview

Our Solution is a low cost IoT sensor system combined with Physics and AI to provide criticality alerts Our aim is to build an Industry 4.0 Sensor Manufacturing Facility and Data Analytics Hub in Townsville

56 Why Townsville? Lead users (EQL, TCC). QLD Advanced Manufacturing Road Map. Harsh tropical testbed. 57 Flow on effects: Industry 4.0 Hub. 195+ Enduring Future ready Jobs. $32M value add. Shielding against sovereign risks.

Inspiration for future generation.58 Immediate Next Steps

• Field trials with EQL and TCC • Pre Series A fund raising • Visits to China and Taiwan • Bankable Feasibility Study for onshoring Acknowledgements

59 Demo THANK YOU

Contact us DSDMIP North Queensland Regional Office P: 4758 3408 E: [email protected] www.dsdmip.qld.gov.au Social: @GrowingQLD