ADX Energy Ltd. entered into an Energy Investment Agreement for the Welchau Investment Area with Canadian TSX Venture Exchange listed MCF Energy Ltd., formerly Kepis & Pobe Financial Group Inc, on the 29th of November 2022. Under the terms of the Energy Investment Agreement (‘EIA'), MCF Energy will fund 50% of the Welchau-1 well drilling costs to earn a 20% economic interest in the Welchau Farmin Area. By the payment of a non-refundable EUR 100,000 Option Fee, MCF Energy was granted the Option to fund a further 50% of the Welchau-1 well cost to earn a further 20% economic interest in the Welchau Investment Area on or before 21 January 2023.

The Option was subsequently extended to the February 28, 2023 on the same terms as previously agreed by the parties. MCF Energy has elected not to exercise the additional participation Option. At the completion of MCF Energy's funding obligation under the EIA for 50% of the cost of the Welchau-1 well, MCF Energy will hold 20% economic interest and ADX will retain a 80% economic interest in the Welchau Investment Area.

The Welchau-1 well cost is estimated to be EUR 3,810,000 (AUD 5,910,000).