Volt Power : Quarterly Activities Report and Appendix 4C

ASX CODE: VPR

BOARD

Adam Boyd Executive Chairman

Paul Everingham Non-Executive Director

Peter Torre Non-Executive Director Simon Higgins Non-Executive Director

ISSUED CAPITAL

9,345M Ordinary Shares 660M Unlisted Options

PRINCIPAL OFFICE

6 Bradford Street Kewdale WA 6105

REGISTERED OFFICE

Unit B9, 431 Roberts Road, Subiaco WA 6008

CONTACT

Mr Adam Boyd Executive ChairmanP: + 61 8 9350 6880 M: [phone]

E:[e-mail]

www.voltpower.com.au

ASX ANNOUNCEMENT

2 May 2022

Volt Power - Q1 FY22 Operational Activity Update

Q1 FY22 HIGHLIGHTS

Group achieves record Q1 ordinary revenues received of $0.83 million - (Q1 FY21 comparison $0.19 million)

Wescone & EcoQuip sales revenue and EBITDA tracking in accordance with FY22 budget

EcoQuip secures 4-month Demonstration Agreement with Santos to trial 2x Mobile Solar Light Tower (MSLT) units

EcoQuip secures 1-month Demonstration Agreement with the Commonwealth of Australia to trial EcoQuip's new Autonomous Communications Sentry security solution

EcoQuip expands manufacture to 30x new MSLT units - up from 10x MSLT units previously reported to supply forecast demandEcoQuip secures Westpac $2.0 million Equipment Finance Facility credit approval subject to final documentation

Mr Paul Everingham joins the Volt Board as a non-exec. directorHYTEN Preliminary Study completed subject to report preparation. Highlights significant LCOH1 competitive advantage - <_us24_2.80 kg="" vs="" solar="">2 ~US$8-9/kg

HYTEN Preliminary Study results scheduled for release in early June 2022 subject to final Board Approval

EcoQuip (70% owned) - New MSLT Demonstration Trials Commenced

• • EcoQuip is the developer and owner of a new "next generation" Mobile Solar Light & Communications Tower solution (MSLT / MSCT). The MSLT / MSCT solution sets a new benchmark in Solar / BESS reliability and safety, charge efficiency, remote control, data analytics and system redundancy.

• • The EcoQuip MSLT incorporates a proprietary, high efficiency solar / BESS power management system capable of up to ~40% enhanced efficiency compared to similar industry standard Solar LED / BESS systems.

• • The EcoQuip MSLT is a zero emission, zero maintenance and zero OPEX mobile light tower with the illumination capability and power budget performance to disrupt traditional diesel fueled light tower alternatives extensively deployed in the global resources and construction sectors. The MSLT is 50% cheaper to hire and operate compared to diesel fueled alternatives.

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• • The new EcoQuip MSLT / MSCT was released in late 2020 and has since been successfully deployed under 1 - 5 year hire contracts at oil & gas and hard rock mining operations across Australia owned / managed by Chevron, AGC and Thiess Contracting. EcoQuip is engaged in discussions to expand the EcoQuip MSLT / MSCT fleet deployments with these foundation customers.

• • Most recently, EcoQuip has secured agreement with Santos to complete a 4-month demonstration trial of 2x MSLTs and continues to advocate for the EcoQuip MSLT to displace all diesel fueled mobile lighting solutions across the Santos operational asset base.

• • EcoQuip advanced demonstration trial contract negotiations with BHP during the quarter for the deployment of 3x design enhanced MSLT units at the BHPIO Pilbara operations. Management understand BHPIO has in excess of 300x diesel fueled mobile light towers in the Pilbara. These negotiations are advancing positively and remain incomplete, however EcoQuip anticipates conclusion in May 2022.

• • The Commonwealth of Australia and EcoQuip reached agreement to undertake a 1-month trial of a new EcoQuip live situational awareness security and communications solution with satellite uplink capability (Autonomous Communications Sentry or ACS). The ACS was deployed in early April 2022 and management are pleased with the trial performance to date.

• • The EcoQuip business has noted a significant ESG policy and data capture driven tail winds from the resources sector as businesses work to identify genuine carbon intensity reduction technologies that can be immediately deployed. Industry labour shortages and increased fuel costs are playing to the zero OPEX and maintenance strengths of the MSLT technology.

• • The 25x MSLT Chevron (Barrow Island) deployment continues to operate with outstanding performance reliability and detailed discussions for a significant increase in the size of the MSLT fleet deployed at Barrow Island continue to advance, however remain incomplete at the time of preparation of this report.

• • EcoQuip's 65x Mobile Solar Light Tower (MSLT) and Mobile Solar Comms Tower (MSCT) fleet has maintained fleet utilization at ~70% during the Quarter. The EcoQuip business continues to generate surplus operating cashflow.

• • During the Quarter, EcoQuip increased its procurement of long lead time component quantities from 10x MSLTs to 30x MSLTs. These components have now arrived at our workshop facility from the USA and assembly commenced.

• • EcoQuip was successful in securing credit approval for a $2.0 million Equipment Finance Facility with Westpac during the quarter. The facility remains subject to final documentation.

  ATEN Waste Heat to Zero Emission Power (100% owned) - ESG Competitive Advantage clarity

• • The ATEN Waste Heat to Power technology is a combined heat recovery and organic rankine cycle turbine system that can recover and utilise low grade, industrial waste heat otherwise vented to atmosphere to generate zero emission, baseload electricity.

• • The Company completed a comprehensive formal Price Enquiry response for the installation of two zero emission, baseload ATEN Waste Heat to Power systems with ~35MW of combined electricity generation capacity at two existing Australian domiciled baseload, open cycle gas fired power stations (Volt Price Enquiry Response) in Q4 2021.

• • The Volt Price Enquiry Response formed a significant component of a broader study performed by engineering consultancy, GHD for the end-user customer (GHD Study). GHD have confirmed that the GHD Study was submitted to the customer in February 2022 however, no feedback has been received from the customer to date. The high-level results of the Volt Price Enquiry Response compared to an equivalent annual power generation Solar / BESS system are detailed in the Table below:

Description	Units	Combined ATEN 1 & 2	Solar / BESS Equivalent	Variance Vs Solar
Capacity (gross / net)	MW (AC)	35.5 / 32.4	106.7	+71.2
Gross Annual Generation (MWh)	MWh	265,375	265,375	-
Capital Cost	$'M	137.0	255.4	+118.4
Utilisation	%	93.4	28.4	Baseload Vs Intermittency
Annual Scope 1 CO2 Abatement	CO2t	159,530	159,530	-
Levelised Cost of Energy (LCOE)1	A$/MWh	47.5	85.7	+38.2

• • The Table above highlights that a 107MW (AC) solar array is required to generate the equivalent annual electricity as the combined 32.4MW (AC) ATEN installations. Further, that the two zero emission, baseload ATEN Waste Heat to Power systems the subject of the Volt Price Enquiry Response deliver a combined $118.4 million Capital Cost saving compared to an equivalent Scope 1 emission reduction Solar / BESS hybrid system.

• • Critically, the ATEN LCOE* is ~45% lower that the cost of an annual generation equivalent Solar / BESS installation (ATEN: A$47.5/MWh Vs Solar/BESS: A$85.7/MWh).

• • The Volt Board believes that the achievement of the "Net Zero by 2050" pledge by Governments, industry and electricity grid stakeholders globally will require the adoption of multiple technology pathways. The Volt ATEN Waste Heat to Power technology delivers a lowest cost, zero emission solution which resonates with the private sector incentive to maximise return on capital deployed.

• • Importantly, the ATEN Waste Heat to Power technology is compatible and complimentary to the installation of Solar / Wind intermittent power generation technologies. ATEN's zero-emission, baseload power supply capability provides grid firming / stability to electricity grids connected to intermittent Solar/Hybrid generation. ATEN optimises the Scope 1 reduction performance where an available heat resource exists that would be otherwise limited by intermittent wind / solar technologies.

• • The Company remains highly optimistic about the near-term commercialization potential of the Volt ATEN Waste Heat to Power solution and continues to prosecute a committed business development activity effort to resource, power generation and gas pipeline operators.

HYTEN - Waste Heat to Hydrogen (100% owned) - Exciting HYTEN Study Results Pending

• • As previously reported, the Company has advanced the flowsheet development of a combined ATEN Waste Heat to Power system with a proven, high efficiency alkaline water electrolyser solution for production of zero emission hydrogen gas. The combined ATEN / electrolyser system is called, HYTEN. A HYTEN patent application has been submitted and related initial patent search due diligence completed.

• • The initial HYTEN preliminary feasibility study activities were completed in Q4 FY21 and the results are highly encouraging. The preliminary engineering activities have confirmed that HYTEN has numerous cost and technical competitive advantages relative to an equivalent annual electricity supply Solar to Hydrogen system. These include:

  •  A ~50% lower LCOE* for zero emission electricity supply to the electrolyser;

  •  ~300% greater electrolyser utilization performance (baseload Vs intermittent power supply); and

  •  At least 50%+ lower electrolyser CAPEX;

  •  All delivering a significantly lower Levelised Cost of Hydrogen (LCOH1).

• • During the Quarter, the Company expanded the scope of the HYTEN Preliminary Study to include downstream hydrogen compression to 102bar and related storage (Compression & Storage). The preliminary engineering, OEM pricing & specification clarification and price estimation activities are close

to completion. The HYTEN Preliminary Study report preparation has commenced with completion scheduled for June 2022.

• • The Board is excited about the potential of the HYTEN technology to facilitate existing LNG facilities, natural gas pipeline compression stations and some power station assets to become significant low-cost hydrogen producers by exploiting the waste heat generated by existing energy infrastructure to create zero emission hydrogen.

Wescone (100% owned) - Delivering Reliable On-budget Performance

• • Wescone is the Original Equipment Manufacturer (OEM) of the proprietary W300 sample crusher extensively deployed in the global iron ore and assay laboratory industries. The Wescone OEM offering comprises three sample crushing equipment solutions with alternative dimensional feed acceptance capabilities - the W300 Series 3, W300 Series 4 and W300 Lab crushers.

• • During the Quarter, Wescone performed broadly in accordance with its forecast budget for the period. The business continues to respond to numerous new tender opportunities and facilitate the expansion of its partner businesses in South Africa and North America.

• • The FY22 Wescone budget forecasts annual revenues of ~$2.0 million.

Corporate and Appendix 4C - Salient December Quarter Financial & Other Information

• • The Company was pleased announce the appointment of Mr Paul Everingham as a Non-Executive Director immediately subsequent to quarter end. Mr Everingham is the outgoing Chief Executive Officer of the Chamber of Minerals and Energy of Western Australia (CME). Paul finishes his role with CME at the end of May 2022.

• • The Company generated positive operating cashflow during the period of approximately $0.3 million for the Quarter.

• • The Company held a cash balance of ~$1.9 million at 31 March 2022. Ordinary revenue receipts totaled ~$0.8 million for the Quarter which is significantly higher than for the same period in FY21. The Company's Wescone business traditionally generates higher revenues in Q3 and Q4 in line with planned shutdown execution schedules of the iron ore sector.

• • Cash payments for the March Quarter totaled ~$0.8 million comprising:

  •  Research & Development and Intellectual Property - $0.09 million

  •  Staff Costs - $0.16 million

  •  Manufacturing Costs - $0.32 million

  •  Admin & Other Costs (net) - $0.25 million

• • Related Party payments for Non-Executive Director and CEO & Managing Director services for the period totaled $24,739 representing ~3 months of non-executive director fees. The CEO & Managing Director fees for the period were deferred.

End

Issued by: Authorised by:Volt Power Group Limited (ACN 009 423 189) The Board of Volt Power Group Limited

About Volt

Volt Power Group Limited (ASX: VPR) is a power generation and infrastructure asset / equipment developer and owner. The Company's businesses commercialise innovative proprietary equipment delivering "stepchange" client productivity and cost benefits achieving annuity earnings for the Company.

Business Activity Summary

These activities of our businesses include:

• • ATEN (100%) - ATEN is a zero-emission waste heat to electricity generation equipment solution. The ATEN is at an advanced stage of initial commercialisation. ATEN enjoys Australian Innovation Patent certification. Refer below;

• • Wescone (100%) - the proprietary owner of the globally unique Wescone W300 sample crusher predominantly deployed throughout the global iron ore sector. Wescone has a successful 25+ year operating track record and recently developed a new crusher with larger dimensional acceptance, reduction ratio and durability specifications;

• • EcoQuip (~70%) - developer and owner of a 'best in class' Mobile Solar Lighting & Communications Tower equipment solution incorporating robust design attributes including US military spec design & build quality, solar / lithium (LFP) battery and storage solution and advanced power management, data telemetry & control system capable of LED lighting, LTE Wi-Fi mesh repeater, point to point microwave, environmental monitoring and CCTV technology retro-fit; and

• • Acquisition / Development Strategy - The Company actively pursues opportunities to expand its broader renewable / low emission power generation and contract services, infrastructure asset & innovative equipment footprint.

About the ATEN Technology: The ATEN comprises a modular, power generation equipment package capable of harvesting 'low' grade industrial waste heat to generate zero emission baseload electricity.

ATEN generated electricity is expected to significantly reduce 'energy intensive' industry operating costs via the displacement of grid sourced electricity or fossil fuel usage associated with electricity generation. The global industrial complex vents a significant quantity of 'low' grade waste heat to atmosphere. This quantity of unexploited waste heat presents an outstanding opportunity for the commercial roll-out of the ATEN Technology.

The ATEN's simple, high efficiency design and modular configuration - developed to maximise its integration capability - provides a low capex, uniquely compatible and scalable solution for the exploitation of 'low grade' industrial waste heat from existing multiple sources. Volt's priority target markets for the commercialization of the ATEN Technology include the resources and industrial processing sectors.

The salient ATEN Waste Heat to Power technology benefits that resonate with power station owners include:

• • Baseload, zero emission incremental power generation (Scope 1 Emission reduction) compatible with Solar Hybrid systems with high penetration;

• • Levelised Cost of Electricity (LCOE)* up to ~50% lower than gas and ~80% lower than diesel generation;

• • LCOE* ~50% lower than an equivalent annual generation Solar/Battery Energy Storage System (BESS);

• • CAPEX ~60% lower than Solar / BESS based on identical annual generation and zero emission performance;

• • Hydrogen co-firing capability;

• • Carbon Credits (CFI) Act 2011 Offset Project / ACCU eligibility; and

• • Zero water & operational personnel requirements