Tlou Energy Limited

("Tlou" or "the Company")

Drilling and Operations update

Ø Drilling of Lesedi 6 vertical well and lateral well top-hole sections complete

Ø Core-hole completed and coal samples acquired

Ø Overhead transmission lines 73% complete

Ø Entitlement offer remains open to eligible shareholders, partially underwritten up to A$5m

Production Wells

The Company is currently drilling the Lesedi 6 gas production pod. The pod will comprise one vertical production well (Lesedi 6P) intersected by two lateral wells (Lesedi 6A and Lesedi 6B) drilled horizontally through the target reservoir section for several hundred metres.

Lesedi 6P - Vertical Production Well

This well has been drilled to a depth of 589m and intersected 6m of the target lower Morupule coal. Well casing was cemented in place, with fiberglass casing at the target coal seam underreamed to expose the coal to the well bore to facilitate dewatering and gas flow.

Lesedi 6A and Lesedi 6B - Lateral Wells

The top hole (or vertical) sections of Lesedi 6A and Lesedi 6B have been drilled. Both have been drilled to a depth of 150m and cased with steel casing and cemented. Following cementing, the wells were drilled a further 2m in preparation for running the directional tools which are required to complete the lateral section of the well.

Core-hole drilling

The objective of the core-hole is to provide additional geological control in the vicinity of the Lesedi 6 gas production pod.

In addition to providing coal and gas content data, the core-hole accurately determined the top and bottom of the target coal seam close to where the lateral section of Lesedi 6A and Lesedi 6B will enter the coal. This is important data for drilling of the lateral section of each well.

The core-hole was completed and logged after reaching a total depth of 535m and intersecting 6m of coal. 18 coal samples were taken and placed in desorption canisters for further analysis.

Transmission Lines

Work on the transmission lines to connect Tlou's Lesedi power project to the existing power grid is progressing. Overall progress to date is ~73%. This work is expected to be completed in 3Q23.

The 100 Km line includes planting wooden and steel pole structures. Most of the wooden poles have been erected and work has begun on the steel structures. Line stringing is also underway with ~30km of the phase conductor and ~67km of the GSW earth wire complete.

Lesedi to Serowe Transmission Line

Substations

Substations are required at either end of the transmission line, one to tie Tlou's generators to the transmission line at Lesedi and another to integrate the line with the existing Botswana Power Corporation (BPC) substation at Serowe.

OptiPower, a division of Murray & Roberts Ltd has been contracted to complete this work. OptiPower has established a site in Serowe and appointed subcontractors for detailed engineering design and civils works with geotechnical assessments, soil resistivity and topographical surveys now complete. The substations are expected to be commissioned in 2Q24.

Operations and generation facility

Work is continuing on a purpose-built operations facility for the initial 10MW development and to allow for project expansion thereafter. This project is being managed by African Gas Services on behalf of Tlou and it is expected to be completed later this year.

This facility will also include the power generation site and the Company has engaged external advisors to provide technical and commercial advice relating to site based power generation design, procurement, construction and operation.

Entitlement Offer

The Company continues to source funding to develop the power project including an Entitlement Offer to eligible shareholders to raise up to a maximum of approximately A$10,645,473 (£5,855,010, BWP92,615,612). The Entitlement Offer is partially underwritten up to A$5m. Full details of the offer are available on the Company's website https://tlouenergy.com/reports

By Authority of the Board of Directors

Mr. Anthony Gilby

Managing Director

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For further information regarding this announcement please contact:

About Tlou

Tlou is developing energy solutions in Sub-Saharan Africa through gas-fired power and ancillary projects. The Company is listed on the ASX (Australia), AIM (UK) and the BSE (Botswana). The Lesedi Gas-to-Power Project ("Lesedi") is 100% owned and is the Company's most advanced project.  Tlou's competitive advantages include the ability to drill cost effectively for gas, operational experience and Lesedi's strategic location in relation to energy customers. All major government approvals have been achieved.

Forward-Looking Statements

This announcement may contain certain forward-looking statements.  Actual results may differ materially from those projected or implied in any forward-looking statements.  Such forward-looking information involves risks and uncertainties that could significantly affect expected results.  No representation is made that any of those statements or forecasts will come to pass or that any forecast results will be achieved.  You are cautioned not to place any reliance on such statements or forecasts.  Those forward-looking and other statements speak only as at the date of this announcement. Save as required by any applicable law or regulation, Tlou Energy Limited undertakes no obligation to update any forward-looking statements.