Frontier Energy (FHE) Investor Presentation summary

Project overview and strategic positioning

• Waroona Renewable Energy Project aims to deliver near-term renewable energy in Western Australia, with Stage One development-ready for 120MW solar and 80MW (4.75hr/380MWh) battery storage.

• Project is strategically located near major industrial loads and grid infrastructure, with all key permits and approvals in place and commercial operation targeted for late 2027.

• Total landholding of 820 hectares supports rapid expansion beyond Stage One, with potential for over 840MW capacity through two grid connections.

• Updated definitive feasibility study (DFS) completed in late 2024 confirms long project life (30 years) and low operating costs.

• Capital structure includes $14m cash (Dec 2024) and a $72m market cap at $0.14/share.

Market fundamentals and energy landscape

• Western Australia’s electricity prices have risen ~61% over three years, driven by increased demand, limited new supply, and higher input costs.

• AEMO forecasts 57% demand growth over the next decade, with coal closures and network constraints delaying new generation.

• WEM (Wholesale Electricity Market) is the world’s largest microgrid, with renewables at 39% of the 2024 energy mix.

• Reserve Capacity Mechanism (RCM) provides additional revenue, with the 2027/28 price set at $360,700/MW and a proposed price floor to enhance bankability.

• Standalone batteries and hybrid projects are increasingly important for grid stability and price arbitrage.

Financial performance and project economics

• Stage One DFS projects $282m capex, $65m average annual revenue, $58m EBITDA, and $243m NPV (7% discount rate).

• Ungeared IRR is 15.4% with a post-tax payback of 6.1 years.

• Battery and excess solar sales in Year One are forecast at 134GWh and 99GWh, respectively.

• Integrated battery strategy enables energy arbitrage, selling stored solar during peak price periods and minimizing curtailment risk.

• Project benefits from all revenue streams, including reserve capacity and CIS support.