Tlou Energy Provides Transmission Line Construction Update

Source: 5/23/2022, Location: Africa

Construction activities for the transmission line to connect the Lesedi Power Project ("Lesedi") to the Botswana power grid have commenced.

Zismo Engineering Pty Ltd ("Zismo") have completed their preliminary work and bush clearing of the route is underway. Preliminary work included site handover, assembling the project team and resources, mobilization of plant and equipment, line survey and design, pole structure modelling, and review and approval by Tlou's Owners Engineer, Mott MacDonald.

Zismo has also commenced procurement of equipment which includes manufacture of steel and wooden poles, cross-arms, line hardware, fittings, stay wire and assemblies. Equipment will be delivered in batches, with the first delivery of wooden poles expected next month.

Zismo's project site offices are set-up in Mogorosi village and a roving site camp will be located at convenient locations along the transmission line route.

Project activities
Work commenced with route preparation which includes bush clearing as mentioned above, as well as installation of farm gates where required, line pegging, inspection and approval.

Erection of poles will be performed in sections with work commencing on the Serowe end of the line and working towards Lesedi. Work on the first section is due to commence at the end of June and on section two around the end of September 2022. The line is expected to use approximately 650 wooden poles and 80 steel structures involving excavation, positioning, assembly, dressing, planting, backfilling and compacting, and thereafter stringing, tensioning and regulation. This will be followed by testing and commissioning and ultimately line energisation.

Work on the transmission line is scheduled for completion in mid-2023, with the substations at either end of the transmission line expected to be completed in the second half of 2023. Sale of electricity can start thereafter.

Tlou's Managing Director, Mr Tony Gilby commented, "It is great to have the transmission line work underway in the field. Our team will be very busy onsite over the coming months and I look forward to seeing the project develop.

We are firmly on track to becoming a regional power producer in a market with a huge power demand and at a time where worldwide demand for gas and cleaner energy is growing significantly."

About the Lesedi Power Project
The Lesedi Power Project ("Lesedi") is located in Botswana's Central District, approximately 100 Km from the existing electricity grid.

To connect Tlou's 100% owned gas field and proposed generation site at Lesedi to the grid, a 100 Km, 66kV transmission line and supporting substations are required. The line will join the existing grid near the town of Serowe. The 66kV line will be capable of carrying up to 25MW of power. Initial electricity generated will be sold to Botswana Power Corporation, the national power utility under an agreed 10MW Power Purchase Agreement (PPA). First revenue under this PPA is expected in late 2023.

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

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