COMMENCEMENT OF GAS SALES IN COLORADO

LEXINGTON, Ky., Oct. 13, 2022

The gas sales agreement between AXP and Elite provides for the delivery of natural gas sourced from AXP's Pathfinder #2 well ('Pathfinder') to Elite (refer ASX announcement dated 15 February 2022) which is now operating the first two EMUs. An additional gathering line from the Amerigo Vespucci well has also been installed to ensure that sufficient volumes of gas are supplied as Elite's operations increase at the Colorado site.

The sale of natural gas to Elite follows an extensive period of collaboration between AXP and Elite. It also marks an important step forward for AXP by establishing an operating framework to further grow revenues from its Colorado oil and gas operations.

Natural gas supplies to Elite are expected to initially average around 200 Mcf per day which will provide an additional revenue stream for AXP from its Colorado assets in the current quarter. Strategically, the agreement allows AXP to extract otherwise stranded oil and gas in accordance with environmental regulations as it does not entail any gas flaring arrangements which are often associated with oil extraction. With no requirement to flare gas, this project is a foundation for further monetisation of the Company's Colorado asset.

Pathfinder and Amerigo Vespucci were specifically chosen to ensure that sufficient volumes of gas are available for supply and because they are best placed to contribute to increased oil production from the lease. More than 10 barrels of oil per day is already flowing from the Pathfinder well with the first two EMUs in operation and production is expected to continue to increase as further gas is required once the the 3^rd EMU commences operations and production stabilizes.

AXP looks forward to supporting Elite, as it endeavours to scale up its Colorado operations, by providing increased natural gas volumes to power additional planned EMUs.

Chief Executive Officer Tim Hart commented: "The commencement of gas sales under the sales agreement marks the achievement of a core operating objective for AXP in our Colorado operations. The extraction and delivery of stranded gas followed an extensive period of engagement with both Elite Mining and Colorado regulators, and the commencement of gas sales, albeit relatively modest to begin with, is a testament to AXP's ability to deliver successful outcomes, and lays the foundation for scaled up operations which Elite is keen to pursue. It also marks a key step forward in the Company's strategy to accelerate valuable oil production from its Colorado leases. Collectively, revenue from first gas sales and the added revenue from increased oil sales will deliver a solid boost to our monthly revenue streams from this asset. We are assessing other avenues to monetise our gas in Colorado and continue to review various offtake scenarios."