The New Shares will take place as a single tranche and will fall within the Company’s ASX LR7.1 and LR7.1A placement capacity available for issue.

The Placement will not be underwritten. The Company reserves the right to take over subscriptions above A$1.5 million using its available LR7.1 and LR7.1A placement capacity.

Offer price of A$0.059 per share.

Discount

Offer Price of A$0.059 per share represents a:

• 14.2% discount to the 5-day VWAP (A$0.069)
• 13.8% discount to the 15-day VWAP (A$0.068)
• 15.7% discount to the last traded price on Wednesday, 13 August 2025 (A$0.07)

Cornerstone Participation

Strong support for the Placement including:

• Demand from directors, Australian investors and Botswana based investors confirmed for the minimum raise amount.
• Directors intend to subscribe for a minimum of A$145,000, subject to shareholder approval at a General Meeting.

Botala Energy Ltd (ASX: BTE BSE: BTE) is 100% owner and operator of the Serowe coal bed methane project in Botswana, Africa. Our priority target is to produce first gas for sale to South African steel maker Scaw in 2026. In March 2025, Botala signed a binding letter of intent with SCAW Metals South Africa, granting the Johannesburg-based industrial major exclusive right to purchase up to 3.5 petajoules (PJ) per year of LNG with an option to increase to 4.7 PJ/year as production scales. The deal also involves SCAW's participation in the bankable feasibility study (BFS) and integration into the infrastructure development for the project.

Funds from this placement will be used to conclude the appraisal program to confirm bankable ‘Reserves’. while commercial negotiations are finalised with significant investors into the project at the asset level which have completed due diligence over the past quarter.

The Serowe CBM Project (100% owned by BTE) is a world class gas field transitioning from exploration to development, covering ~4,100km2 of the CBM rich Karoo-Kalahari Basin in Central Botswana:

• Two out of five wells drilled to a depth of 500m at a cost of around A$220,000 each are currently flowing gas (wells have peaked at 40 gigajoules (GJ)/day). Four new wells (500m depth) are planned to bring the total number of producing wells to nine.
• The nine-well cluster will serve a pilot “plug and play”, mini LNG unit by Galileo Technologies capable of producing 0.25PJ per year (250,000GJ). The goal is to increase the daily production of each well to at least 76.1GJ/day which represents an overall production volume of 685GJ/day.
• One Galileo LNG unit has the potential to return US$2.65 million per year against a gas price of US$10.60/GJ.
• A Bankable Feasibility Study (BFS) is underway to develop a major LNG plant by Chart Industries capable of producing 3.5PJ/year (3,500,000GJ/year). The plant would be served by 12 production clusters made up of nine wells each (108 wells total) with each well stimulated to produce an average of 89GJ/day.
• Mining Licence awarded for the production of gas from the field.
• All environmental approvals in place for the development.
• Host communities and Botswana Government are strong supporters of the project given the light environmental footprint and significant economic benefits.
• The project’s certified independent gross “best estimate” resource is 454Bcf (2C) & 7,112Bcf (3C). Target is to upgrade these contingent and prospective resources to 7PJ of 2P reserves to support the 3.5PJ/year LNG plant for 20 years. Only 5% of our acreage has been drilled to date.

The largest steel producer in Johannesburg, SCAW Metals South Africa, has exclusive rights to procure up to 3.5 PJ/year of LNG from the Serowe CBM Project with an option to expand to 4.7 PJ/year as production scales. The commitment assists to de-risk the project, establishing a contracted customer and supporting commercial viability as Botala advances towards development.

The agreement will also integrate SCAW into the BFS, aligning infrastructure development, logistics, and delivery optimisation. The BFS findings will guide the final LNG Sale and Purchase Agreement (SPA)/Gas Sales Agreement (GSA).

The Botswana Government (via the Mineral Development Company of Botswana (MDBC)) has an option to acquire a 15% equity stake in the Serowe CBM Gas Project under Section 40 of the Mines and Minerals Act. The MDBC is targeting completion of the due diligence process by 30 September 2025 with respect to exercising this option. Other major investors engaged by the Company are currently considering the opportunity to take the remaining 25% equity stake available.