Jade to Power Site Operations from Early Gas Flows

Jade Gas Holdings

Highlights

• Gas from first two production wells to power planned site operations
  
  
• Represents an important symbol for the opportunity to displace diesel for lower carbon intensity gas energy
  
  
• Gas flow rates from first production wells are exceeding expectations which will support the near complete Plan for Development for Operations (PDO)
  
  
• Commercial initiatives to support substantial gas operation in train with first off-take arrangements expected in the short term.

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Jade Gas Holdings Limited (ASX:JGH) (Jade or the Company) confirms that it plans to use gas from first two production wells to power planned site operations at the TTCBM Project in the South Gobi region of Mongolia.

As announced to the ASX on 10 June 2025 and 20 August 2025, Jade has successfully brought its initial two CoalBed Methane (CBM) production wells online, both of which are now flowing gas. In light of the stronger than anticipated performance of these wells, the Company is expediting the installation of a small-scale gas-powered electricity generation unit at the well site. Gas produced from production wells RL-Hz-001 and RL-Hz-002 will supply this unit, with the electricity initially being used to power well site operations, replacing the current reliance on imported diesel fuel.

The achievement of sustained gas flow marks a significant milestone and introducing gas-fired generation at the site represents an appropriate step for the TTCBM Project. This step highlights Jade’s progress toward enabling Mongolia to utilise domestic gas for local electricity, with broader implications once LNG production facilities are established — including the opportunity to replace large quantities of diesel used by Mongolian long-haul coal transport fleets to China.

With an LNG distribution point some 5km from the Red Lake field, the Company is well placed to progress offtake discussions backed by the increased certainty of the longer-term volume deliverability following early performance indications. The offering of long-term gas supply from Red Lake is significantly beneficial to local users of diesel fuel, which is imported and often subject to supply disruption.

Due to LNG’s transportability, extensive opportunities emerge to enhance the environmental footprint of remote mining operations across the region by adding gas-fired power to their energy mix. The addition of reliable, gas-supplied baseload power will also allow for integration of more intermittent renewable resources such as wind and solar, broadening the market for Red Lake’s gas while supporting Mongolia’s carbon reduction goals.

Commenting on the use of gas to power site operations, Jade’s Non-Executive Director Dr Ian Wang said,

“The use of gas-fired electricity to support our own operations demonstrates the practical application and value of a domestic gas supply. Gas production from Jade’s Red Lake Gas field is poised to transform Mongolia’s energy landscape as the country looks to transition to energy independence. We are now on the cusp of establishing a major gas operation with visible markets to achieve early revenues.”

Link to ASX Release:  https://bit.ly/3HKuqoY

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Interim CEO
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Elvis Jurcevic
Investor Relations
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