Frontier Energy (FHE) Corporate Presentation summary

Capital raising and funding strategy

• Announced a $40 million equity raising at $0.25 per share, a 45.1% discount to the last closing price, to fund early works and long lead items for Stage One of the Waroona Renewable Energy Project.

• Up to 160 million new shares to be issued, representing 35.8% of existing shares, with director participation and joint lead managers appointed.

• Proceeds will primarily fund early works, reserve capacity security, working capital, and transaction costs.

• Debt financing of up to $215 million has been mandated with Infradebt, an experienced infrastructure lender, to support Stage One development.

• Strategic partnership process is ongoing to support funding for Stage One and future expansion.

Project overview and development

• Stage One consists of a 120MWdc solar farm and 80MW/360MWh battery, with key permits and approvals in place and construction set to begin in 2024.

• Certified Reserve Capacity secured from AEMO, forecasted to provide up to 36% of Stage One revenue.

• Early works and procurement of long lead items have commenced, targeting first production in 2H2026.

• Stage Two expansion is under assessment, leveraging existing infrastructure for rapid scaling up to 1GW.

• The project is positioned to address major forecasted energy deficits in Western Australia as coal assets retire.

Financial profile and returns

• Stage One DFS forecasts EBITDA of $68 million per annum for the first five years and $63 million for the first ten years.

• Initial capex for Stage One is $304 million, with an equity IRR of 22% and payback period of 4.6 years pre-tax.

• Battery storage enables revenue maximization by dispatching power during peak pricing periods.

• Reserve Capacity Mechanism in WA provides fixed revenue, with potential for $27 million over five years.

• Wholesale electricity prices in WA have risen 70% in two years, supporting strong project economics.