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Tlou Energy project development update

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World Coal,

Tlou Energy Limited has announced that the Lesedi 3 production pod has successfully reached critical desorption pressure (CDP). CDP is the pressure that gas begins to come out of the coal after a careful dewatering process.

Tlou's Managing Director Tony Gilby commented: "Since the commencement of production testing, the dewatering process at Lesedi 3 and Lesedi 4 has steadily progressed with CDP recently being reached at Lesedi 3. The primary objective remains to demonstrate a commercial gas flowrate."

Production update

Lesedi 3, the first dual lateral production pod completed earlier this year, has reached CDP in the horizontal well bores. Reaching CDP is a positive milestone in the operation and means that as a result of a careful and successful dewatering process to date, gas begins to come out of the coal.

The next stage of the operation at Lesedi 3 involves continued water pumping which should see gas pressure steadily increase inside the casing to an optimal point so that flow testing and flaring of the gas can begin.

Lesedi 4 (the second pod drilled and completed) continues to be carefully dewatered. Water is continuing to be drawn down in a controlled manner as planned.

Further updates on progress at Lesedi 3 and 4 will be provided in due course.

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