#1JADE GAS Capital Raising Investor Presentation (ASX: JGH) April 2022 JADEGAS.COM.AU#2Disclaimer This presentation has been prepared by Jade Gas Holdings Limited ("Jade" or the "Company"), with the purpose of providing general information about the Company. This presentation contains certain statements which may constitute "forward-looking statements". Such statements are only predictions and involve inherent risks and uncertainties. Actual results and performance are likely to differ materially from those expressed or implied in any forward-looking statements. To the maximum extent permitted by applicable laws, Jade and its directors, agents, officers or employees make no representation and can give no assurance, guarantee or warranty, express or implied, as to, and take no responsibility and assume no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission from, any information, statement or opinion contained in this presentation. This presentation does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company's prospects and should not be considered specific advice or a recommendation to invest in securities. It should not be relied upon as a complete and accurate representation of any matters that a potential investor should consider in evaluating Jade. The Company accepts no responsibility to update any person regarding the information contained in this presentation. This presentation may not be reproduced or redistributed to any other person. This presentation was not intended for the use of any third party without the approval of the Company. All references to dollars, cents or $ in this presentation are to Australian currency, unless otherwise stated. Competent Persons Statement The hydrocarbon resource estimates in this presentation have been compiled by Mr Adam Craig who is an employee of RISC as part of the Independent Technical Specialists Report prepared for the Prospectus dated 14 July 2021. Mr Craig is a highly experienced Geoscientist and Manager, with over 30 years' experience in the upstream oil & gas sector working for small and mid-size independents, as well as NOC related entities. He is a Certified Practising Geologist, a member of AAPG, PESA (2021 WA Branch President), EAGE, MAICD, and a Fellow of the Geological Society. He holds BSc in Geology from Curtin University, Western Australia and is a qualified petroleum reserves and resources evaluator (QPRRE) as defined by ASX listing rules. 2#3Corporate Summary Capital Structure ASX Ticker JGH Three Share price-22 April 2022 $0.065 TTCBM Core CBM Project Shivee Gobi Eastern Gobi Shares on issue 1,209m Assets Options and performance shares 164m Market Capitalisation $78.6m Cash (at 31 December 2021) $4.37m Management Team Share Price Chris Whiteman GM Commercial $12,000,000 $0.10 Mark Pitkin GM Technical $10,000,000 $0.09 Justin Green Financial Controller & CoSec $8,000,000 $0.08 Board of Directors $6,000,000 $0.07 Dennis Morton $4,000,000 $0.06 Chris Jamieson $2,000,000 $0.05 Joseph Burke il.l. $0 $0.04 2222222 99 22223 Volume Close* Daniel Eddington Peter Lansom Non-Executive Chairman MD and CEO Executive Director Non-Executive Director Non-Executive Director 3#4Investment Highlights 1 2 3 5 COMPELLING OPPORTUNITY TO DEVELOP NEW GAS ASSETS Targeting natural gas from three coal seams of interest at TTCBM Project, with a Prospective Resource of 1.0 Tcf of gas. DEFINED WORK PROGRAM CURRENTLY UNDERWAY Six well drilling campaign to deliver contingent resource booking and followed by pilot production program. NEW PERMITS ADD SCALE TO EXISTING TTCBM PROJECT New permits located over existing coal deposits provide significant upside to CBM exposure and potential. MONGOLIAN ENERGY MARKET POSITIVE TAILWINDS Mongolian Govt determined to build a domestic gas market to deliver an independent and cleaner source of energy for its people. TEAM IN PLACE WITH THE RIGHT EXPERIENCE TO DELIVER Small and experienced team confident of delivering game changing first gas production for Mongolia. STRATEGIC PARTNERSHIP WITH MONGOLIAN GOVERNMENT Partnerships with regulator MRPAM (PSA), and SOE Erdenes Methane LLC, reflects strategic importance of TTCBM Project. 4#5Mongolia Seeking Cleaner Independent Energy Supply A MONGOLIA IS SHORT ENERGY CLEAN ENERGY FUTURE ☐ ■ Domestic power requirements currently met predominantly with coal ■ Net energy importer of gas and gas liquids Importing electricity from China to support activity in the South Gobi GAS SUPPORTED AS TRANSITION FUEL ■ Gas expected to play a significant part in the Government's transition to a domestic clean energy fuel market ■ No current indigenous gas production ■ Renewable energy at embryonic stage and currently high cost; gas to assist with transition to renewables over the longer-term Mongolian Government focused on improving the Country's energy independence and energy mix to meet its climate change commitments and for the health/well-being of its people 5#6Quality Portfolio of Mongolian CBM Permits Three high quality permits covering in excess of 18,000km2 in existing coal basins Tavan Tolgoi Coal Bed Methane gas project ■ Jade (60%) is near completion of a six well drilling program at its flagship TTCBM Project in the South Gobi region of Mongolia MAP AREA RUSSIA 500 km RUSSIA Ulaanbaatar MONGOLIA Beijing Shanghai Seoul Tokyo o Irkutsk CHINA ☐ Defining coal seam extensions from the Tavan Tolgoi coal mine ULAANBAATAR MONGO Bayankhongor Shivee Gobi Saynshanda ■ Four wells completed of a six well program ◉ Up to 98% Methane, gas content of 11-15m³/t and gas bearing coals of up to 65 metres per well Shivee Gobi Permit ■ 100% ownership; permit area of 8,317 km² ■ Sizeable coal deposits and CBM potential within known coal basin Eastern Gobi Permit ☐ ■ 100% ownership; permit area 9,691 km² ■ Sizeable coal deposits and CBM potential within known coal basin Major road Major railway International airport Major mine Major city Capital city Map by flatEARTH mapping.com.au | Made with Natural Earth 2021 Dalandzadgado4 TTCBM Project Eastern Gobi Hohhot Baotou BEIJING CHINA Bohai Sea 6#7Milestones and Catalysts Key milestones delivered quickly following listing with further near-term catalysts in progress Six Well Drilling Program commenced at Red Lake Initial Results Outstanding early results received for Gas Bearing Coal New Permits Secured Two extensive (>18,000km²) and highly prospective CBM permits added. UB Metan MOU Non-binding MOU signed with Mongolia's largest gas distributor to deliver produced TTCBM gas SIX WELL PROGRAM COMPLETING Near-term catalysts ■ Case and complete Red Lake-5 and -6 ■ Confirmation of gas bearing coals, gas content and composition INDEPENDENT RESOURCE CERTIFICATION TTCBM Project: 2C Contingent Resource for Red Lake Area Shivee and Eastern Gobi: Prospective Resource COAL PERMEABILITY AND GAS SATURATION ◉ ■ Permeability to shape upcoming pilot program Isotherm analysis to identify gas saturation in coals 2022 TTCBM PROJECT DRILLING PROGRAM ■ Potential for two appraisal wells and three exploration wells Extended production testing of Red Lake-5 and Red Lake-6 Oct 2021 Nov Dec Jan 2022 ASX Listing Feb Mar Apr May Jun Red Lake-1 Red Lake-2 Red Lake-3 Red Lake-4 Red Lake-5 Red Lake-6 Gas Composition 98% methane in coal seams III and 0, 92.5% methane in coal seam IV Gas Content 11-15m3/t of gas within the coal seams of interest 4 of 6 Wells Completed Red Lake-1 to -4 now drilled, with Red Lake-5 drilling ahead and Red Lake -6 to come; up to 68 metres of gas bearing coal in each well Dec 2022 7#8TTCBM Project: Path to Commercial Gas Production Q2 2022 H2 2022 PATH TO COMMERCIAL GAS 2025 2023 2024 1. Estimates only, not yet approved by the regulator MRPAM ca $ KEY GAS CRITERIA SATISFIED ■ Six well program to deliver composition, content, permeability and saturation information EXTENDED PROD TEST / 2022 PROGRAM ■ Red Lake-5 test, 90-180 days; 2022 drilling program of up to five wells; Contingent Resource booking Red Lake area PILOT PRODUCTION POTENTIAL WELLS TO BE DRILLED Red Lake-5; Red Lake-6 Up to two appraisal and three exploration wells1 ■ Up to 4 wells producing for at least six months ■ 5+ wells1 DEFINITIVE FEASIBILITY STUDY ☑ ■ Gas field development confirmed via technical and economic assessment; 2P Reserve booking ■ 10+ wells¹ COMMERCIAL PRODUCTION ■ Full field development completed; commercial gas production commenced ■ 20+ wells¹ 8#9MOU signed with UB Metan LLC UBM delivers connectivity to commercial gas sales for TTCBM Project ■ Non-binding gas offtake memorandum of understanding signed with UBM ■ UBM is Mongolia's largest importer of LNG, largest gas distributor and a Jade shareholder LNG-ENG-L.CN UB METAN ■ MOU delivers a framework for TTCBM Project commercial gas sales ■ Both parties to work toward a binding long-term gas sales agreement on commercial terms (post 2023 pilot production program at TTCBM) Aligned partnership focused on delivery of independent cleaner energy for Mongolia ■ UBM to potentially provide infrastructure to support on-site compression of natural gas (CNG) ■ CNG to be transported to Ulaanbaatar, nearby towns and mining sites LNG to market Storage Tank & Pump ГАЛЫН АЮУЛТАН UB META View of commissioned L-CNG fuelling station METAL N L ST G N LNG Tanker Truck G LNG Storage Tanks Pump station Vaporizer Storage System CNG Dispenser LNG Dispenser 13-215 Bus fuelling 9#10Assets 10#11TTCBM Project High gas content and composition with thick gas bearing coal seams of interest ■ TAVANTOLGOI-XXXIII Production Sharing Agreement (PSA): 665 km² area over the Tavan Tolgoi coal field (Jade 60%) ■ Eight wells drilled by Jade in 2019 defined targets for current drilling ■ PSA awarded in October 2020, with tenure up to 30 years ■ Gas bearing coal seams may extend through ~220 km² of coal fields to south and southeast of the PSA area ■ Four of six wells drilled to date; up to 68 metres of gas bearing coals; 92.5%-98% methane; gas content of 11-15m³/t Permeability test work ongoing, gas saturation measurements expected within months ■ Permian coals within permit are similar in age to Bowen Basin, Qld TTCBM Prospective Resources¹ Gross Unit Bcf Low 216 Best 1,044 High 3,062 MGR Campo Red Lake-6 Tavan Tolgoi 0 о Red Lake-5 0 Red Lake-20° Red Lake-3 Tavan Tolgoi coal field Tavan Tolgoi coal mining activity Major road O 2019 drilling campaign 2021/22 Red Lake drilling campaign Central core area Map by flatEARTH mapping.com.au | Contains data Open Street Map contributors. • Red Lake-1 • Red Lake-4 Tavan Tolgoi Tsogttsetsii CENTRAL 2.5 km CORE AREA TT CBM Project Area 1. Prospective resources are undiscovered and have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons. An Independent Technical Specialist Report (ITSR dated 24 June 2021, RISC Advisory) was provided in the Jade Prospectus (14 July 2021) and contains further detail regarding sources of and information in respect of the unrisked Prospective Resource Estimate above, which has been extracted from the ITSR. The additional information includes the basis of the probabilistic estimates, further activities to be undertaken in respect of the TTCBM Project and an assessment of risks associated with the estimates. Jade has a 60% interest in MGR however the Net outcome for MGR is dependent upon the sharing requirements of the PSA which vary according to production rate, capital costs, operating costs and pricing and are therefore currently indeterminate. 11#12TTCBM Project Drilling Program - 2021/22 East Red Lake-1 Current six well drilling program focused on delivering contingent resource certification Red Lake-1 ■ Total depth ("TD") at 1,012 metres; 145 metres of coal core recovered; 58 metres gas bearing Gas composition: 98% methane in seam III and 0, 92.5% methane in seam IV; gas content of 11-15m³/t Red Lake-2 ■ TD at 790 metres; 131 metres of coal core recovered; 47 metres gas bearing Red Lake-3 ■ TD at 702 metres; 82 metres of coal core recovered; 30 metres gas bearing Red Lake-4 ■ TD at 864 metres; 182 metres of coal core recovered; 65 metres gas bearing West Ground level Red Lake-2 200 m 400 m 600 m 800 m Coal seam IV Coal seam III Coal seam 0 Coal seam Horizontal scale 1000 m 500 m NOTE: Vertical scale is exaggerated 1.5x Evaluation program underway and seeking to understand: Gas desorption: to assess gas content Permeability: to identify ease of fluid flow through the coals Gas saturation: via isotherm analysis 12#13TTCBM Project Drilling Program - 2021/22 0962L FOR SA Safety Briefing One Coal processing at Red Lake-1 TTCBM Project Camp Red Lake-1 Drilling ETHANE GAS RESOURCE METHANE GAS RESOURCE GAS DESORPTION LABORATORY Winter Drilling Prep Mobile Lab METAH TA3 PECYPC METAH TA3 PECYPC Mobile Lab Operations Technical Team 13#14Shivee and Eastern Gobi Permits Areally extensive and highly prospective permits located in known coal basins 25 km Jade Gas target area Current coal exploration and mining licenses ULAANBAATAR MONGOLIA Dalandzadgad TTCBM Project Shivee Gobi Saynshand Eastern Gobi CHINA D SHIVEE GOBI OULAANBAATAR MONGOLIA Dalandzadgad TTCBM Project EASTERN GOBI Shivee Gobi 25 km Saynshand of Eastern Gobi Jade Gas target area Map by flat EARTHmapping.com.au | License data from CMCS Mongolia ■ 100% ownership; permit area 8,317 km² ■ Second largest coal mine in Mongolia within permit Expenditure of US$110k for first three years CHIN Map by flatEARTHmapping.com.au | License data from CMCS Mongolia Current coal exploration and mining licenses ■ 100% ownership; permit area 9,691 km² ■ Significant coal deposits located within permit boundary Expenditure of US$160k for first three years 14#15Key Raising Details 15#16Uses of funds - $6.7 million Fast tracking and expanding exploration and appraisal of TTCBM Project and new permits ☐ TTCBM PROJECT $3.3 million Upgraded 2022 program with three exploration wells, two appraisal wells Expanded testing capability SHIVEE GOBI $0.3 million ■ Further desktop analysis ■ Two potential exploration wells EASTERN GOBI $0.3 million ■ Further desktop analysis ■ 2D seismic ■ One potential exploration well 2023 PROGRAM $0.5 million Long lead items for drilling and pilot production ■ Items include casing, well heads, pumps, pipeline CORP/ADMIN $2.3 million ■ Costs of capital raising ■ Adelaide and Mongolian office costs ■ Working capital 16#17Key raising details ~$6.7 million raising via an Institutional Placement Offer Size & Structure Pricing Capital Raising Details 1. Institutional Placement to raise approximately A$6.7 million via the issue of approximately 128,000,000¹ new fully paid ordinary shares at A$0.052 ("New Shares") (“Placement”). Issue Price represents: 20.0% discount to the Jade closing price on Wednesday 22 April 2022 of $0.065 per share 15.2% discount to the Jade 5-day Volume Weighted Average Price ("VWAP") of $0.0613 per share up to and including 22 April 2022 13.4% discount to the Jade 10-day VWAP of $0.06 per share up to and including 22 April 2022 12.0% discount to the Jade 30-day VWAP of $0.0591 per share up to and including 22 April 2022 New Shares to be issued under the Placement, representing 10.6% of existing shares on issue and 9.6% of total shares on issue at completion of the capital raise UB Metan LLC to provide $1 million as a cornerstone investor to the capital raising Ranking New Shares issued will rank equally with existing ordinary shares from allotment 121,250,000 Placement Shares to be issued under the Company's ASX Listing Rule 7.1 Placement Allocation. 6,750,000 Placement Shares to be issued following Shareholder approval at the Company's AGM as required by ASX Listing Rule 10.11 17#18Key raising details Pro-forma Capital Structure Post-capital raise pro-forma $6.7m raise Pre-raise ordinary shares 1,209.4m 90.4% Pre-raise market capitalisation¹ $78.6m Target New shares issued (Placement) 128.0m 9.6% Total Target shares post-raise 1,337.4m 100.0% Issue Price $0.052 Implied market capitalisation (at Issue Price) $69.6m Cash² $11.1m Implied enterprise value (at Issue Price) $58.5m Performance rights³ Options4 25m 139m 1. As at last close of $0.065 per share on 22 April 2022 2. 3. 4. Includes existing cash of $4.4 million at 31 December 2021 plus $6.7 million capital raise (excluding cap raise fees and legal costs) ASX releases - 25 November 2021 (8,000,000), 16 December 2021, (16,000,000) and 4 January 2022 (1,000,000) for employee incentives. ASX release 30 September 2021 - 7,000,000 options exercisable at $0.15 expiring 30 June 2022, 90,000,000 options exercisable at $0.045 expiring 30 June 2023 and 12,000,000 options exercisable at $0.045 expiring 22 September 2024. ASX release 25 November 2021 - 4,000,000 options exercisable at $0.10 expiring 31 October 2024. ASX release 4 February 2022 - 4,000,000 options exercisable at $0.12 expiring 1 February 2025.ASX release 20 April 2022 - 12,000,000 options exercisable at $0.09 expiring 19 April 2025. 10,000,000 broker options yet to be announced. 18#19Indicative Placement timeline1 Key dates Trading Halt Placement Offer Opens Placement Offer Closes (5.00pm AEDT) Trading Halt lifted and announcement of Capital Raising Settlement of New Shares under the Placement² 3 Lodgement of Cleansing Prospectus with ASX and ASIC ³ Issue (and normal trading) of new shares issued under the Placement 1. All dates and times are indicative only. The Joint Lead Managers and the Company reserve the right to vary these times and dates without notice. Pre-Market Tuesday, 26 April 2022 Pre-Market Tuesday, 26 April 2022 Tuesday, 26 April 2022 Pre-Market Thursday 28 April 2022 Wednesday, 4 May 2022 Thursday, 5 May 2022 Thursday, 5 May 2022 2. Does not include 3.0 million New Shares that will be issued to related parties and require Shareholder approval at the Annual General Meeting pursuant to ASX Listing Rule 10.11 3. The Cleansing Prospectus is required to remove any trading restrictions on the New Shares 19#20Investment Risks 20 20#21Investment risks Potential investors should be aware that there are risks associated with investing in Jade. Certain risks are beyond the control of Jade and its Directors and Management and may have a material impact on Jade's future operating and financial performance, and/or the financial position of Jade, its prospects and/or the value of the Shares. Some of the key risks associated with an investment in Jade are described as follows. Exploration risk Development risk COVID-19 risk · • Key to Jade's financial performance is to have success in exploring for and locating commercial hydrocarbons. Exploration is subject to technical risks and uncertainty of outcome. Jade may not find any or sufficient hydrocarbon reserves and resources to commercialise which would adversely impact the financial performance of Jade. In the event that Jade is successful in locating commercial quantities of hydrocarbon through exploration, or purchases a development project, then that development could be delayed or unsuccessful for a number of reasons including extreme weather, unanticipated operational occurrences, failure to obtain necessary approvals, insufficient funds, a drop-in commodity price, supply chain failure, unavailability of appropriate labour, or an increase in costs. If one or more of these occurrences has a material impact then Jade's operational and financial performance may be negatively affected. The Company has observed that in response to COVID-19, governments globally have imposed restrictions on the movement of citizens and limited non-essential services and activities. Governments around the world have also recommended or enforced restrictions on both domestic and international travel in order to slow the spread of COVID-19. Given the ongoing uncertainty surrounding COVID-19 restrictions, it is not currently possible to assess the full impact of COVID-19 on the Company's business. However, a prolonged financial reduction may impact on the commodity price and the availability of labour or other costs associated with the Company's business. These effects may be felt both domestically and internationally, for an unspecified duration. A number of aspects of the Company's business may also be directly or indirectly impacted by government, regulatory or health authority actions, work stoppages, lockdowns, quarantines and travel restrictions associated with COVID-19. 21#22Investment risks (cont...) Operational risk Prospective resources risk Oil and gas prices risk • Adverse weather events, unforeseen increases in establishment costs, mechanical failures, human errors, industrial disputes or encountering unusual or unexpected geological formations and other unforeseen events, could lead to increased costs or delay to the Company's activities and exploration programs, or restrictions on its ability to carry out its present exploration programs. The Company will mitigate this risk by, amongst other things, taking out appropriate insurance in line with industry practice. Estimating hydrocarbon reserves and resources is subject to significant uncertainties associated with technical data and the interpretation of that data, future commodity prices, and development and operating costs. There can be no guarantee that Jade will successfully produce the volume of hydrocarbons that is estimated as its Prospective Resources or that hydrocarbon resources will be successfully converted to reserves. Estimates may alter significantly or become more uncertain when new information becomes available due to for example, additional drilling or production tests over the life of field. As estimates change, development and production plans may also vary. Downward revision of Prospective Resource estimates may adversely affect Jade's financial outlook. The price at which Jade can sells any future gas will have a material influence on the future financial performance of the Company. It is impossible to predict future commodity prices with confidence and the factors which impact it include, but are not limited to, global political situations, military conflicts, technological changes, output controls and global energy consumption which are all outside the control of Jade. A material and extended fall in realised gas prices for Jade may have an adverse impact on the Company's future financial performance, including potentially a reduction in the quantity of potential reserves. 22 22#23Investment risks (cont...) Access to funding for operations risk Regulatory risk Community opposition risk . • • Exploration and development of hydrocarbon reserves and resources require significant capital and operational expenditure. With future growth, Jade may require funding for future commitments. There can be no assurance that the Company will be able to obtain funding as and when required on commercially acceptable terms, or at all. Failure to obtain funding on a timely basis and on reasonably acceptable terms may also cause Jade to miss out on new opportunities, delay or cancel projects, or to relinquish or forfeit rights in relation to the Company's assets, adversely impacting its operational and financial performance. Jade's assets are currently in the Mongolian jurisdiction. The enactment of new legislation or adoption of new requirements of a governmental authority may restrict or affect Jade's right to conduct exploration and development or the manner in which such activities can be conducted, including new requirements relating to climate change and energy policy. There is a risk that community disapproval may lead to direct action which impedes Jade's ability to carry out its lawful operations, resulting in project delay, reputational damage and increased costs and thus impact the financial performance of the Company. 23#24Investment risks (cont...) Counterparty exposure and joint ventures Key person dependence General risk factors • • • The financial performance of the Company is subject to its various counterparties or joint venture partners continuing to perform their respective obligations under various contracts. If one of its counterparties or joint venture partners fails to adequately perform their contractual obligations, this may result in loss of earnings, termination of particular contracts, disputes and/or litigation of which could impact on the Company's financial performance. The future success of the Company depends, to a significant extent, upon the continued services of the members of the management team of the Company. There can be no assurance that the Company will be able to retain or hire all personnel necessary for the development and operation of its business. The loss of senior managers could harm the Company's business and its future prospects. Prospective investors should also consider the following risks which apply to all investments in shares: - Investment risks, such as changes in the Company's own assessment of the economics of developing its assets or the market perception of the value of the Company's assets and shares; - Share market and liquidity risks involved in the listing and trading of shares on the ASX; and Economic factors including the effect on the market price of shares of movements in equities markets, commodity process, currency fluctuations and interest rates, and local and global political and economic conditions. 24#25Contacts Chris Jamieson Managing Director and Chief Executive Officer [email protected] Investor Relations Elvis Jurcevic [email protected]