Transaction Overview

TMK Energy Limited (ASX: TMK) raised AUD 6.0 million (before costs) through a heavily oversubscribed equity placement. The placement attracted a cornerstone investment from experienced Coal Seam Gas (CSG) industry professionals, alongside participation from new institutional investors (both offshore and domestic) and existing major shareholders.

The placement was priced at AUD 0.12 per share, a 17.2% discount to the last closing price of AUD 0.145 and a 7.1% discount to the fifteen-day VWAP. A total of 50,000,000 new fully paid ordinary shares will be issued on or around 30 March 2026. Board members have committed an additional AUD 80,000 in participation, subject to shareholder approval at the upcoming AGM in late May 2026.

Bridge Street Capital Partners acted as Sole Lead Manager and book runner, receiving a 2% management fee and 4% selling fee on total funds raised, along with 6,000,000 unlisted options exercisable at AUD 0.275 (expiring 31 January 2028), subject to shareholder approval.

Purpose of the Funding

Proceeds will be directed toward advancing TMK’s Gurvantes XXXV Coal Seam Gas Project in Mongolia’s South Gobi region, including:

• Drilling of up to three additional pilot production wells to accelerate reservoir dewatering and gas desorption
• Targeting sustainable commercial gas flow rates and booking of the first reserves for the project
• Advancing the beneficial use of gas strategy and commercialisation initiatives
• Progressing discussions with potential strategic funding partners and gas offtake arrangements
• The funding enables TMK to move beyond the initial proof-of-concept phase and build toward a commercially viable gas production operation at Gurvantes XXXV.

What This Means for Investors

• Validation of asset potential: Oversubscription and cornerstone participation signal strong confidence in the Gurvantes project
• Near-term catalysts: Increased drilling activity and initial reserve booking could drive valuation upside
• Commercialization pathway: Progress toward offtake agreements and strategic partnerships reduces execution risk
• Frontier market exposure: Offers early positioning in Mongolia’s emerging gas sector with potential long-term growth