Ncondezi Energy Limited provided an update on the integrated Ncondezi 300MW power project in Tete, Mozambique. The case for the Project remains strong, there is a clear need for new baseload power in Mozambique to meet the Mozambique Government's own targets however the company also recognises that the environment for new coal power is challenging and the uncertainty on timing is causing a drag on the share price. The company see USD 2 billion Temane Gas Power (450MW) and related transmission infrastructure projects reached financial close last month and that work has begun on the Mozambique - Malawi interconnector project.

Both demonstrate the Government is delivering on their "Energy For All" strategy and improving credibility as an investment destination for large infrastructure projects, particularly in the energy sector. As one of the most advanced baseload development power projects in the country we are in a prime position to assist the Government in continuing to meet their targets and energy transition to more cost effective and reliable forms of supply. While the company awaits for clarity on financing for the Project and feedback from EDM on the Transmission Integration Study, the Board has taken the decision to review and implement a cash conservation strategy to further extend the Company's working capital position beyond first half of 2022 to ensure no further funding is required in the immediate future.