• Maiden 2P gas reserve of 30.2 PJ independently certified for the Rolleston West Project
• Establishes a reserve base capable of supporting a 10TJ/day pipeline-connected gas project
• $3.2 million raised through issue of unsecured convertible notes at a 33% premium

State GAS Ltd (ASX: GAS) has released its Quarterly Activities Report for the period ending 31 December 2025, highlighting the company's key achievements. The standout event was the independent certification of a maiden proven plus probable (2P) gas reserve of 30.2 petajoules (PJ) for the Rolleston West Project in central Queensland. This reserve, certified by Netherland, Sewell & Associates, Inc, is capable of supporting the economics of a long-life, 10TJ/day coal seam gas project that can provide pipeline quality gas to both the East Coast domestic and export markets. The 2P reserve provides a strong foundation for State GAS to advance funding solutions, detailed engineering, gas sales negotiations, and engagement with infrastructure providers and co-investment partners. To support these activities, the company raised $3.2 million through the issue of unsecured convertible notes at a 33% premium to the closing price. This funding allows State GAS to accelerate pre-development work for the Rolleston West Project. The company is now focused on completing concept and pre-FEED/FEED studies, seeking regulatory approvals, advancing commercial discussions with potential gas off-takers, and negotiating the introduction of project co-investment partners. State GAS is also promoting the use of its HDNG technology as a diesel fuel alternative for coal mines in the Bowen Basin, which presents a significant opportunity. The company continues to work towards resolving an ongoing land access dispute, which is a priority to ensure the sustainable development of the Rolleston West Project.

The company is now focused on developing the commercial frameworks to support accelerated delivery of the Rolleston West Project, which will require significantly less capital than prior years and add substantial value to the Project and the Company over the coming twelve months. The resolution of the ongoing Landholder dispute remains a priority, as does continuing to pursue customers for the Company's HDNG technology. With a reduced cost structure, a significantly improved capital position, and a narrowed focus, State GAS is well-positioned to capitalize on the expanding opportunity set for natural gas on the east coast of Australia.