• Closing cash of $5 million after $3.5 million receipt from PEP 169 sale
• Preparing to drill Wombat-5 conventional gas well in Victoria
• Progressing rehabilitation of Lou Yang-2 well in Victoria

During the quarter, Lakes Blue Energy expended $1.5 million on operating activities, including $0.3 million on exploration and evaluation. The company's closing cash balance was $1.5 million, which increased to $5 million on January 10, 2025, after receiving $3.5 million from the sale of its 49% interest in Petroleum Exploration Permit 169 (PEP 169) to Armour Energy (Victoria) Pty Ltd. The company is progressing work toward securing approvals for drilling the Wombat-5 conventional gas well in the Gippsland Basin, Victoria, and is responding to feedback from the Department of Energy, Environment and Climate Action (DEECA) on the draft Operation Plan for rehabilitation of the Lou Yang-2 well within PEP 166. The company has also advised DEECA that it will relinquish Petroleum Exploration Permit 163, as it is assessed to have limited petroleum potential. In Papua New Guinea, the company is investigating options for progressing exploration activity at the Buna prospect within PPL 560 after TotalEnergies decided not to proceed with the Technical Cooperation Agreement. In South Australia, the company, with joint venture partner Vintage Energy Pty Ltd, is continuing investigations of options for development of the Nangwarry-1 well to produce carbon dioxide for industrial, medical, and food use. The company's Queensland Roma Shelf project, ATP 1183, is highly prospective for oil, gas, and condensate discoveries.