NCCL.L Regulatory News (NCCL)

News Release  

Ncondezi Project Timetable Update

15 April 2020: Ncondezi Energy Limited ("Ncondezi" or the "Company") (AIM: NCCL) is pleased to provide a general update on the planned steps to progress the proposed integrated Ncondezi 300MW coal-fired power project and coal mine in Tete, Mozambique (the "Project").

Highlights:

· Updated Project timetable agreed by Ncondezi and its partners following submission of updated tariff proposal to Electricidade de Moçambique ("EDM")

· Key target milestones for Q2 2020:

o Tariff negotiation concluded with EDM

o Shareholders agreement term sheet concluded

o Engineering, Procurement and Construction ("EPC") contract in agreed form

o Ncondezi historical costs audit completed

· Key target milestones for H2 2020:

o Power Purchase Agreement ("PPA") in agreed form with EDM

o Power Concession Agreement ("PCA") in agreed form with Ministry of Mineral Resources and Energy ("MIREME")

o Shareholder agreement entered into

· Project Financial Close is targeted for H1 2021

Note: Timetable subject to change due to developing impact of COVID-19

Ncondezi Chief Executive Officer, Hanno Pengilly said: "The successful submission of the updated Project power tariff has opened up the next phase of key development work to further de-risk the project and firm up the underlying Project value.

A key priority between now and the end of June will be finalising the power tariff negotiations with EDM. I believe the Project is uniquely positioned with a competitive tariff offering and world class partners. At this stage the full impact of COVID-19 is unknown however it is clear that large scale infrastructure projects, such as the Ncondezi Project, can play a major role in giving economies a critical boost in the short term whilst supporting long term growth in the future. As an advanced stage project, the Ncondezi Project has significant potential to mobilise quickly, create much needed jobs and provide access to a reliable and affordable source of power, helping to close the regional infrastructure gap and serving as a catalyst for economic development.

In addition to the tariff negotiations, today's announcement highlights the workstreams that will be run in parallel over the remainder of the year. Finalisation of the EPC contract, PPA and PCA are cornerstone milestones to finalise debt and equity financing, whilst the shareholders agreement term sheet and full form agreement and historical costs audit will crystallise the Project value to shareholders.

Further updates will be made to shareholders as Project milestones are progressed."

Enquiries

For further information please visit www.ncondezienergy.com or contact:

About Ncondezi Energy

Ncondezi is an African power development company with an advanced staged, integrated 300MW thermal coal power plant and mine project located in the Tete Province, Northern Mozambique.

The Company is focused on providing reliable, affordable and accessible baseload energy to Mozambique and secure against the effects of water drought and intermittency of new renewables. This project supports Mozambique's energy strategy of universal electricity access by 2030. According to the World Bank, only 30% of the Mozambican population had access to energy in 2017. The Ncondezi Project would provide 300MW of reliable and available power helping to close the infrastructure gap of the region and serving as a catalyst for economic development.

The power plant will be designed to be equipped with state-of-the-art emissions controls technologies that will reduce local air pollutants, minimizing the plant's impact on the environment and ensuring its compliance with the most stringent emission standards

In April 2019 the Company announced a proposed Joint Venture with GridX Africa Power Development to enter into the Commercial and Industrial ("C&I") renewable and battery storage sector and in October 2019 announced their first investment in an off grid solar battery project. The move into the C&I solar and battery storage sector offers a significant opportunity for the Company to complement the existing large-scale baseload power project and access near-term low-risk annuity income streams which have significant growth potential.