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HazerGroup Local Technology for Global Markets Hazer Group Limited ( ACN 144 044 600 ) Level 9 , 99 St Georges Tce , WA 6000 PO Box Z5511 , St Georges Tce , Perth , WA 6831 APPENDIX 4C - 31 DECEMBER 2020 QUARTERLY ACTIVITIES & CASHFLOW REPORT Highlights : • Hazer Commercial Development Project • • - majority of significant approvals completed , with detailed engineering phase progressed to 65 % completion and orders for majority of major equipment supply packages now placed . Execution of Convertible Note Deed with AP Ventures , subject to receipt of necessary approvals ( including FIRB ) . AP Ventures are a global VC fund headquartered in London with a mandate to invest in pioneering new technologies and companies . Hazer and Mineral Resources agreed mutual termination of the Binding Collaboration Agreement . Hazer maintains strong financial position with cash reserves of $ 28.8 million as at 31 December 2020. Cash held increased in the quarter with receipt of $ 0.951 million R & D Tax Incentive rebate , option exercise proceeds of $ 3.55 million , $ 2 million loan receipt from the MAM Loan Facility , and receipt of $ 9.4 million from the Australian Renewable Energy Agency . PERTH , AUSTRALIA ; 25 JANUARY 2021 : Hazer Group Ltd ( " Hazer " or " the Company " ) ( ASX : HZR ) lodges the following activity update and attached Appendix 4C Quarterly Cashflow Report for the six - month period ended 31 December 2020 . Key activities undertaken during the quarter are outlined below : Commercial Demonstration Plant update A key focus of the Company's activities continues to be the execution of the Hazer Commercial Development Project ( " CDP " or " Project " ) . Successful execution of the CDP demonstrating Hazer's technology scale - up represents the key next step in fully commercialising the Hazer Process . Good progress has been made on the Project since taking the FID decision in July 2020 despite a very challenging operating environment due to Covid - 19 . The CDP is a 100 tons per annum , low - emission hydrogen production facility that will be the first larger scale , fully integrated deployment of the Hazer Process . The CDP will be located at the Water Corporation's Woodman Point waste - water treatment plant in Western Australia and utilise biogas produced at the treatment plant as feedstock to produce renewable , low emission hydrogen and graphite . During the quarter , Hazer further advanced engineering , procurement and permitting activities related to the CDP . Significant progress has been made on permitting activities with Development Approval , Works Approval , Clearing Permit and Section 18 ( Aboriginal Heritage ) approval secured by year - end . The receipt of these approvals will allow civil site preparation to be undertaken in Q1 calendar year 2021. During December , a welcome to country singing ceremony was also completed by a Whadjuk Elder as a representative of the traditional owners . Exact dates for the start of civil preparations will be finalised subject to the availability of WWW.HAZERGROUP.COM.AU CONTACT@HAZERGROUP.COM.AU 1