Request for proposal received from Botswana government for up to 100 MW of CBM

Tlou Energy Limited, an AIM and ASX listed company focused on delivering power in Botswana and Southern Africa through the development  of coal bed methane (‘CBM’) at its Lesedi CBM project, is pleased to announce it    has received a    detailed Request for Proposal (“RFP”) from  the Government of Botswana to develop up to 100MW of CBM power in Botswana.

HIGHLIGHTS

• Tlou receives request for proposal from Botswanan Government to provide up to 100MW of CBM power from its Lesedi project
• Follows Government of Botswana’s announcement in June 2016 that the delivery of 100MW of CBM power be incorporated into its future generation supply plans
• Tlou owns 100% of the most advanced CBM project in Botswana – achieved first independently certified CBM gas reserves and Environmental Impact Statement approval in 2016
• Field development plan currently being worked on to progress a scalable CBM to power plant at Lesedi

Tlou’s Managing Director Tony Gilby said, “We are pleased to receive the RFP from the Botswana Government and look forward to providing them with a detailed, compelling and compliant tender for our pilot power generation project at Lesedi.

“This is the next step in the path to a binding offtake agreement and is testament to the fact that the Botswana Government remains committed to see CBM power projects developed in Botswana so that CBM can become a long term indigenous source of cleaner energy for the country. Lesedi is a scalable project and being the first company in Botswana to achieve independently certified CBM gas reserves in 2016 as well as the first to receive Environmental Impact Statement approval we are clearly well placed to deliver on our objectives. We look forward to updating the market in due course as we make progress towards fulfilling our vision to become a significant provider of energy in Botswana and the wider region.”

Request for Proposal for CBM Power Project

Tlou has received a Request for    Proposal from    the Government    of Botswana for  the developmentof  up to  100MW  of power using    CBM.    This  indicates    the    Government’s  commitment    to    facilitate the development of a CBM industry in Botswana. The proposed Government power purchase agreement (“PPA”) will assist in fast‐tracking    the development of    the gas    industry in the  country and creates a new market for Tlou’s independently‐certified gas reserves and significant contingent gas resources of ~3.3 trillion cubic   feet(3C).

As previously announced  in July 2016, Tlou is one of two companies selected to bid for the    development of up to 100MW of power using CBM in Botswana as an Independent Power Producer. The Company has now received a detailed Request for Proposal (“RFP”)from  the Ministry of Mineral Resources, Green Technology and  Energy Security.The closing date for this tender is 12 July 2017. The RFP requires details of the   proposed field development, the installation of power generation facilities and supply of power into the grid in Botswana.

The Botswana Government has developed this initiative to allow  companies such as Tlou to develop pilot plants and facilitate the  development of  their CBM resource to    levels    which may lead    to the supply of gas  to the  Government owned 90MW  Orapa Power    Plant,    which is  situated approximately 150km    to the north of Tlou’s Lesedi CBM Project.

It is a requirement  of the RFP that all matters are kept confidential. However, the    Company    will update the market where possible and    specifically in relation to completion and  submission of the required documentation.