Linking Energy Globally

Linking Energy Globally

Liquefied Natural Gas Limited: Corporate overview Liquefied Natural Gas Limited (LNGL or the Company) is based in Perth, Western Australia and listed on the Australian Securities Exchange (ASX Code: LNG) and the OTC International Platform in the United States (OTC ADR: LNGLY). The Company has offices in Houston, Texas; Lake Charles, Louisiana; and Halifax, Nova Scotia. LNGL s portfolio consists of 100% ownership of the following companies: - LNG Technology Pty Ltd, a subsidiary which owns and develops the Company s OSMR liquefaction process technology, a mid-scale LNG business model established to deliver lower capital and operating costs, faster construction, and improved efficiency, relative to larger traditional LNG projects; - Magnolia LNG, LLC (Magnolia LNG), a US-based subsidiary, which is developing an 8 mtpa or greater LNG export terminal, in Lake Charles, Louisiana, USA; - Bear Head LNG Corporation Inc. (Bear Head LNG), a Canadian-based subsidiary, which is developing an 8 12 mtpa LNG export terminal in Point Tupper, Nova Scotia, Canada; - Gladstone LNG Pty Ltd, a subsidiary which plans to develop the 3.5 mtpa Fisherman s Landing LNG (FLLNG) project at the Port of Gladstone in Queensland, Australia; and - Bear Paw Pipeline Corporation Inc. (Bear Paw), a Canadian-based subsidiary proposing to construct and operate a 62.5 km gas pipeline lateral to connect gas supply to Bear Head LNG. We chose the RED ANT as our logo because it is distinctive and bold, and represents strength, energy, hard work and perseverance characteristics we want to be trademarks of our corporate culture. Board of Directors Richard Beresford Non-Executive Chairman Greg Vesey Managing Director & Chief Executive Officer Maurice Brand Executive Director Leeanne Bond Non-Executive Director Philip Moeller Non-Executive Director Paul Cavicchi Non-Executive Director Michael Steuert Non-Executive Director

Bear Head LNG Magnolia LNG Fisherman s Landing LNG LNGL s mission is to create substantial shareholder value through successful execution of our Energy Link strategy, distinguishing LNGL as a pure liquefied natural gas ( LNG ) infrastructure investment opportunity. Our Company s Energy Link strategy is to safely develop mid-scale LNG export terminals to link proven gas resources with existing LNG buyers. This entails safely developing mid-scale, low cost, efficient and reliable LNG liquefaction terminals to serve the international energy market s demand for natural gas. This integrates demonstrated skills in identifying and securing strategically located project sites, with the development of these sites in a rapid, cost effective manner. Our business model applies the Company s owned and developed OSMR liquefaction process technology, which centers on delivering four key principles: industry leading competitive capital cost; optimized plant energy efficiency; shortened development and construction schedules; and an overall smaller environmental footprint, including reduced carbon emissions relative to other LNG technologies. We are continually evaluating additional growth opportunities that would benefit from our Energy Link strategy. Overview of LNGL s Corporate Mission and Strategy STRATEGY - Achieve mid-scale LNG sector market leadership - Satisfy customers needs competitively, reliably, and with integrity - Contribute to growth and economic development in the communities in which we operate - Emphasize creating safe working conditions and minimize environmental impacts where we do business EXECUTION - Identify and secure strategically located sites to build, own, and operate LNG export facilities - Use the OSMR LNG process to deliver liquefied natural gas efficiently and cost effectively - Commercial solutions for LNG buyers and natural gas producers that enhance their business outcomes - Target geographically diverse portfolio of operated LNG export facilities OSMR TECHNOLOGY PLATFORM - Low cost, highly efficient, environmentally friendly, robust, and low risk technology - Combines several well-proven, existing industrial technologies into one integrated system - Integrated system delivers a market-leading LNG export capital cost - Design arrangement is highly efficient, generating lower emissions and improved economics Executive Management Team Greg Vesey Managing Director & Chief Executive Officer Maurice Brand Executive Director Michael Reed Mott Chief Financial Officer Kinga Doris General Counsel/ Joint Company Secretary Anthony Gelotti Chief Development Officer John Baguley Chief Technical Officer Lisa Vassallo Vice President, Human Resources

The OSMR Liquefaction Process: An integration of proven technologies The OSMR liquefaction process technology maximizes the energy efficiency of LNG liquefaction trains by combining several well-proven, existing technologies into one integrated system. These technologies, proven in other industry applications, integrate within the OSMR process to generate liquefaction performance improvements. The OSMR technology results in a reliable LNG plant that is relatively simple to design, construct, operate, and maintain. LNGL s wholly-owned subsidiary, LNG Technology Pty Ltd, has filed domestic patent applications in approximately 20 countries and regions around the world as part of its international patent program. Each OSMR liquefaction train contains a 2-in-1 design, featuring two independent parallel refrigeration circuits, each providing 50% of train capacity. High reliability and improved operability is achieved while maintaining a simple configuration. As illustrated in Figure 1, the following components comprise the core liquefaction process: - Single mixed refrigerant (SMR) liquefaction, using proven and efficient brazed aluminum plate-fin cold box liquefaction units; - Gas turbine waste heat recovery system (combined cycle process) generates steam, providing motive power to the ammonia refrigeration system, achieved by utilizing a highly efficient once through- steam-generator (OTSG), harnessing the waste heat from the turbine exhaust; - Ammonia, as a pre-cooling refrigerant, having superior refrigeration properties to commonly used propane, allows for smaller condensers, exchangers, piping, and general plant size; - The closed loop ammonia refrigeration circuit, which is driven by steam recovered from the waste heat recovery system, pre-cools the MR, directly cools inlet air to the gas turbines, and provides additional and efficient process cooling within the feed gas treatment systems; and - Selection of highly efficient and reliable gas turbines for the MR compressor mechanical drive that serves the MR circuit. OSMR Process Figure 1: Schematic of OSMR liquefaction process technology

Integration of these components in the process technology enables high overall performance levels. Ammonia pre-cooling increases the plant capacity without increasing the size and cost of the major components of the liquefaction plant the cold box, gas turbine, and MR compressor. Inlet air chilling to the gas turbines ensures a consistent power output at varying ambient conditions. The gas turbine rated power reduces with higher ambient temperatures, which results in lower LNG production. Pre-chilling the air to the gas turbines allows for improved and consistent gas turbine power in various ambient conditions, increasing annual LNG production. A boil-off gas handling system recovers flash gas, boil-off gas, and ship vapor from the LNG tank, and through a simple reliquefaction and nitrogen rejection system ensures required LNG composition is met. The lightly compressed boil-off gas is re-liquefied in the cold box and sent to the liquid methane separator, where it is separated with the liquid methane stream returning to the LNG storage tank. This system enables recovery and reliquefaction of low temperature boil-off gas while minimizing compression losses that are commonly seen in other liquefaction designs. The OSMR liquefaction process technology has been backed by KBR, who has a long history of success in global LNG, ammonia, and plant modularization projects. The improved efficiency and inherent simplicity of the OSMR liquefaction process technology optimize the capital and operating costs of the LNG plant. The technology aligns with the necessities of LNG production while sustaining economic, environmental, operations, and safety targets. CAPEX and OPEX benefits Utilising OSMR liquefaction process technology for the Magnolia LNG project (MLNG) has enabled a LSTK EPC contract price in the range of US$495/tonne US$544/tonne to be achieved, placing this project among the most CAPEX efficient of recent LNG projects globally. Furthermore, this design delivers LNG plant fuel gas consumption at a guaranteed value of 8%, representing a 92% feed gas guaranteed production efficiency. Actual fuel gas consumption may range from 6% to 8% during operation (92% - 94% production efficiency) based on internal analyses. The execution of the MLNG EPC contract represents a critical milestone for the project. Importantly, the EPC contract affirms LNGL s view that the business model of mid-scale, modular based LNG trains of nominally 2 million tonnes per annum (mtpa) using the patented OSMR liquefaction process technology, is robust, delivering significant CAPEX and OPEX savings. OSMR represents a competitive advantage in the current climate of energy market uncertainty. The benefits of incorporating this process technology and modular construction approach are outlined in detail below. OSMR provides a flexible capacity platform to best satisfy the needs of individual projects. The initial design application has targeted single LNG train capacities of 2 mtpa, while studies have demonstrated this is economically scalable to single LNG train capacities ranging from 0.5 mtpa to 3 mtpa or more. Multiple LNG trains can be combined to produce plants of over 10 mtpa total capacity to align with the optimum economics for each opportunity. Importantly, this mid-scale approach enables developers to access the LNG market gradually, increasing LNG production capacity in moderate steps with the installation of additional modular trains as available feed, markets, or financial capacity grows. The required plot space is less than that needed for traditional LNG plants and the execution strategy, using standard equipment and modular construction, reduces construction cost and schedule risk. Currently, three LNG projects are proposing to use OSMR liquefaction process technology: Magnolia LNG project (Lake Charles, Louisiana), Bear Head LNG project (Nova Scotia, Canada) and the Fisherman s Landing LNG project (Gladstone, Australia). These projects each have a nominal LNG production capacity per train in the range of 1.5 2 mtpa each, and the trains are designed with two identical cold box exchangers, each of which are chilled by an independent closed loop mixed refrigerant (MR loop). Each of these MR loops has its own gas turbine drive, and the two parallel MR refrigeration circuits maximize the turndown capability of each LNG train. Plant availability greatly improves since the LNG train can reach 50% capacity when one MR circuit has tripped or is down for planned maintenance. Modular Construction The OSMR compact mid-scale design configuration allows each LNG train to be broken down into only five main process modules, as shown in Figure 2 below. Offsite fabrication of the modules in a fabrication yard, with transport to the project reduces on-site labor, while providing a high degree of quality and schedule control during module construction. The modular construction approach allows repeatability with aspect to the liquefaction trains, further improving economics of the business model. 2 MTPA Nominal Design Capacity OSMR Liquefaction Train (5 Modules + Ancillary Equipment) Module 3 Module 2 Module 1 Module 4 Module 5 Figure 2: Schematic of assembled modules

Artist s rendition of the 8.0 mtpa (design capacity) Magnolia LNG project in the Port of Lake Charles, Louisiana, USA Magnolia LNG: Bringing new energy to the global LNG market Magnolia LNG, LLC, is developing a mid-scale LNG export facility on the Calcasieu Ship Channel known as America s energy corridor in Southwest Louisiana, USA, with direct shipping access to the Gulf of Mexico. At full plant capacity, Magnolia LNG will consist of four LNG trains (natural gas liquefaction units) producing 8 million metric tonnes or more of LNG per year. Stuart Bradie (KBR); Maurice Brand (LNG Limited; and Jose Montalvo (SK E&C USA)

Map showing the Magnolia LNG project location which is well connected to natural gas transmission pipelines Project Site Development Southwest Louisiana s Gulf Coast location with its access to natural gas pipelines and waterways make it an ideal location for the development of an LNG project. Project development is on a 115-acre site located on the Calcasieu Ship Channel near Lake Charles in Southwest Louisiana, USA. A long-term lease option agreement has been executed with the landowner, the Port of Lake Charles, with the lease term to be 30 years with four 10-year extensions for a total of 70 years. The project includes the development of four LNG production trains of 2 million metric tonnes per annum (mtpa) or greater each, two 160,000m 3 LNG storage tanks, a marine terminal and associated infrastructure. The Kinder Morgan Louisiana Pipeline (KMLP) runs beneath the site, which means feed gas pipeline capital costs are minimized. The LNG will be loaded onto ships and barges for delivery to domestic and export markets. Trucks and ISO containers can be used to carry LNG to domestic distribution in Louisiana and to markets in the Caribbean. OSMR Liquefaction Process Technology Magnolia LNG will utilize the patented Optimized Single Mixed Refrigerant (OSMR ) liquefaction process technology, which is developed and owned by Magnolia LNG s parent company, Liquefied Natural Gas Limited, through its wholly owned subsidiary LNG Technology Pty Ltd. Refer to the OSMR section for more details. Natural Gas Supply Natural gas supply for export will come from major producing supply basins located within North America, including shale, tight gas, and onshore and offshore conventional production. Magnolia LNG will receive natural gas from gas suppliers selling in the Gulf Coast market. The natural gas will be delivered through the existing KMLP pipeline, which accesses key regional and long-haul pipelines including ANR, Texas Eastern, Columbia Gulf, Transcontinental, Texas Eastern, Texas Gas Transmission, Pine Prairie and others. The Energy Information Administration (EIA) estimates that the U.S. holds 354 trillion cubic feet in proved reserves of natural gas. A roughly 50% increase in total natural gas production from 2012 to 2035 is anticipated to come from increased development of shale gas, tight gas, and offshore natural gas resources. Export of natural gas from projects like Magnolia LNG should contribute to continued exploration and production of natural gas in the U.S. EPC Contract Magnolia LNG has signed a legally binding lumpsum turnkey (LSTK) engineering, procurement and construction contract (EPC contract) with the KBR-SKE&C joint venture (KSJV). The LSTK contract guarantees liquefaction production of 7.6 mtpa and 92% feed gas production efficiency using LNGL s patented OSMR LNG process technology. The LSTK EPC price, which is fixed for a contractually agreed validity period, indicates an EPC capital cost in the range of $495 to $544 per tonne of LNG plant capacity (for the 8 mtpa or greater plant). Final EPC capital cost per tonne will be confirmed at completion of final plant design. This pricing establishes a new benchmark for U.S. Gulf Coast projects and is substantially lower compared with recent LNG projects around the world. Regulatory Review To obtain approval to site, construct, and operate an LNG export facility, Magnolia LNG filed its detailed project plan with the U.S. Federal Energy Regulatory Commission (FERC). The FERC is the lead U.S. federal agency overseeing review and approval of the required Environmental Impact Statement (EIS) for each LNG project and related natural gas pipeline(s) The FERC review process ensures approved LNG projects and associated gas pipelines and LNG ship traffic meet all safety and environmental requirements during construction and operation. The FERC oversight is an interactive program that includes FERC, other federal agencies, community groups, other stakeholders, and the LNG project owner. Magnolia LNG received its FERC Order authorizing Magnolia LNG to site, construct, and operate facilities to liquefy and export domestically produced natural gas in April 2016. Approvals and Project Milestones The following are key regulatory approvals and project milestones in place or to be in place prior to financial close and start of construction. - Lease Agreement with the Port of Lake Charles - U.S. Department of Energy (DOE) Authorization to export LNG to Free Trade Agreement (FTA) and Non-Free Trade Agreement (NFTA) countries - LSTK EPC Contract with KSJV - FERC Order and Notice to Proceed - Process compressor and drive alliance agreement with Siemens - Cold Box / BAHX alliance agreement with Chart Industries - Offtake agreements - Project financing

Artist s rendition of the 8.0 mtpa (design capacity) Bear Head LNG project in Richmond County, Nova Scotia, Canada Bear Head LNG: Not all Canadian LNG projects are created equal Bear Head LNG Corporation is developing an LNG export terminal in Nova Scotia at a site partially developed a decade ago. The facility will be located in the existing Point Tupper Industrial Park on the north bank of the Strait of Canso, a naturally deep and sheltered waterway with direct access to the North Atlantic. The Bear Head LNG facility is being designed to produce from 8-12 million tonnes per year of LNG. A sister company, Bear Paw Pipeline Corporation Inc. is proposing to construct and operate a lateral natural gas pipeline to connect the Bear Head LNG export terminal to gas supply sources near Goldboro, Nova Scotia. Project Background The Bear Head LNG project was initiated by prior owners in 2001 as an LNG import facility. Environmental, construction and other approvals were granted between 2003 and 2005 and construction began in 2005. More than US$100 million was spent on development, engineering, and construction before activity was put on hold in 2007 because of changing energy markets. Site improvements were maintained and permits were kept active in the intervening years before the 2014 purchase of Bear Head LNG Corporation by Liquefied Natural Gas Limited. Bear Head LNG, under the new ownership by LNGL, began the process of updating regulatory approvals. Bear Head LNG has now received the last of 10 initial Canadian federal, provincial, and local regulatory approvals needed to commence project construction (the equivalent of the U.S. FERC Order status). Bear Head was the first proposed LNG facility in Canada to do so and the only one close to this milestone in Eastern Canada. Bear Paw Pipeline Corporation Inc. was formed in 2015 for the purpose of constructing and operating a 62.5 km (38.8 mile) lateral natural gas pipeline, connecting Bear Head LNG to a pipeline header near Goldboro, Nova Scotia, providing Bear Head LNG access to natural gas supply sources. Photo of the existing Bear Head LNG project site showing the substantial improvements that are already in place The Bear Head LNG project has gas supply potential from West Canada, U.S. and in East Canada, including offshore Nova Scotia

Site Development The project is being developed on a 327-acre site, including a 75-acre water lot, and will include four natural gas liquefaction trains, LNG storage tanks, a marine terminal and associated infrastructure. As a result of work performed by the previous owner, the majority of site preparation and access work is already complete. The export terminal site is located on the naturally deep waters of the Strait of Canso in Point Tupper, Richmond County, Nova Scotia. The waterway is naturally sheltered, remains ice free, and requires no dredging. The Strait of Canso shipping community is served by established tug, pilot, and marine support operations. The export terminal will be designed to handle LNG vessels with capacity up to 267,000 cubic meters. The property is within the Point Tupper/ Bearhead Industrial Park, situated near the town of Port Hawkesbury. The industrial park, administered by Nova Scotia Business Inc., provides access to transportation infrastructure, and a skilled and available workforce. Other facilities in the industrial park include NuStar Terminals (petrochemical storage), ExxonMobil Canada (natural gas processing and fractionation plant), and a coalfired thermal electrical generation station operated by Nova Scotia Power Inc. Bear Head LNG shall have access to this existing adjacent industrial infrastructure (including electricity). OSMR Liquefaction Process Technology Bear Head LNG will utilize the patented Optimized Single Mixed Refrigerant (OSMR ) liquefaction process technology, which is developed and owned by Liquefied Natural Gas Limited, through its wholly owned subsidiary LNG Technology Pty Ltd. The project will leverage existing engineering and design work performed at Magnolia LNG in its design work and expects to deliver a U.S. Gulf Coast LNG cost structure. Refer to the OSMR section for more details. Natural gas supply Natural gas supply for export through Bear Head will come from major supply basins located within North America. Supply source options include the Marcellus and Utica shale, Western and Central Canada, and offshore Nova Scotia production. All three supply sources can be delivered to the Bear Head area through existing infrastructure. In combination with the low cost liquefaction solution provide by the patented OSMR technology, these gas sources make Bear Head LNG a cost competitive alternative to other Canadian (Western or Eastern) projects. Well located for LNG portfolio supply Bear Head LNG s Nova Scotia location provides an optimal supply source to serve key LNG markets around the world thanks to competitive shipping distances. The Bear Head LNG site is the closest North American project to Northwest Europe, Argentina, the Middle East, and India, and it is similar in shipping distance to Asia as LNG supplies from the U.S. Gulf Coast. Regulatory review Bear Head LNG requires Canadian federal, provincial, and local regulatory approvals to construct the proposed export project. All required initial permits are in place for construction, including an approved federal and Nova Scotia environmental assessment. Bear Head has received permits to construct a gas plant facility from the Nova Scotia Utility and Review Board, and approval under the Navigable Waters Protection Act. Further, Bear Head LNG maintains strong relations and working relationship with the First Nations. Canada s National Energy Board (NEB) has approved an import license for 1.2 billion cubic feet of natural gas and a 25-year license to export up to 8 million tonnes per annum (mtpa) of LNG starting in 2019, with expanded authority to increase production to 12 mtpa in 2024. The U.S. Department of Energy (DOE) granted Bear Head LNG approval to export U.S.-sourced natural gas to both nations that do (FTA) and nations that do not have free trade agreements (Non-FTA) with the U.S. This allows export of up to 440 billion cubic feet per year of U.S. natural gas to Canada and up to 8 mtpa of LNG. Bear Paw Pipeline Corporation Inc. continues to progress its permitting process to gain regulatory approval for the 62.5 km (38.8 mile) lateral gas pipeline that will connect Bear Head LNG to natural gas supply. The process is progressing to plan.

Fisherman s Landing LNG project: Positioning for LNG supply to Asia Gladstone LNG Pty Ltd, a wholly owned subsidiary of Liquefied Natural Gas Limited which owns the Fisherman s Landing LNG (FLLNG) project, is proposing the development of a mid-scale 3.5 million tonne per annum (mtpa) design capacity LNG plant at the existing Berth No.5 in the Port of Gladstone, Queensland, Australia. Gladstone Map showing the location of the Fisherman s Landing LNG project site

Artist s rendition of the 3.5 mtpa (design capacity) Fisherman s Landing LNG project at Gladstone, Queensland, Australia The initial development is based on two (2) LNG trains, each of a 1.5 mtpa minimum LNG production and 1.75 mtpa LNG design capacity. Each LNG train at the FLLNG project requires a minimum of 260 Terajoules (TJ) per day to produce 1.5 mtpa of LNG. Gladstone LNG Pty Ltd is responsible for: the proposed planning; development; construction; and operation of the FLLNG project. This includes responsibility for: ~22 km interconnect gas supply pipeline; gas treatment and liquefaction facilities; storage tank; jetty/ ship loading; and related facilities. Gladstone LNG Pty Ltd has secured a 24 hectare mainland site under an Agreement for Lease with Gladstone Ports Corporation Limited (GPC) until 31 March, 2018. The Agreement for Lease includes, as an annexure, the agreed form of Lease, including a 20 year lease term (with 2 x 5 year term extension options). The site has access to existing port infrastructure and services and, subject to relevant approvals, is capable of accommodating up to 4 LNG trains, with a combined LNG design capacity of 7.0 mtpa. The site at Gladstone has undergone significant site work prior to the site being placed on a care and maintenance basis pending the procurement of natural gas supply, with approximately A$70 million spent on developing the Fisherman s Landing LNG project to date. The major focus on the FLLNG project is to secure adequate gas supply for the first LNG train involving a minimum LNG production of 1.5 mtpa per train. On 31 October 2014, LNGL announced to the ASX the execution of a non-binding Memorandum of Intent (MOI) for a proposed gas sales agreement (GSA) with Tri-Star Petroleum Company (Tri-Star). The Queensland Government s Department of Natural Resources and Mines (DNRM) approved extension of the dates for completion of construction (associated with the LNG Facility) for the Petroleum Facility Licence (PFL 18) and the Petroleum Pipeline Licence (PPL 161) to 31 December 2017. The FLLNG project is effectively on a care and maintenance budget until gas supply can be secured to the project site. Document Disclaimer Forward-looking statements may be set out within this correspondence. Such statements are only predictions, and actual events or results may differ materially. Please refer to our forward-looking statement disclosure contained on our website at www.lnglimited.com.au and to the Company s Annual Report and Accounts for a discussion of important factors that could cause actual results to differ from these forward-looking statements. The Company does not undertake any obligation to update publicly, or revise, forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.

Liquefied Natural Gas Limited PERTH Level 1, 10 Ord Street West Perth WA 6005 Australia P +61 (0)8 9366 3700 E lng@lnglimited.com.au LNG Management Services LLC MAGNOLIA LNG AND BEAR HEAD LNG HOUSTON 1001 McKinney, Suite 600 Houston Texas 77002 USA P +1 713 815 6900 E lng@lnglimited.com.au Greg Vesey MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER Maurice Brand EXECUTIVE DIRECTOR Michael Mott CHIEF FINANCIAL OFFICER Anthony Gelotti CHIEF DEVELOPMENT OFFICER John Baguley CHIEF TECHNICAL OFFICER Magnolia LNG, LLC One Lakeshore Drive, Suite 1810 Lake Charles Louisiana 70629 USA P +1 337 656 9200 E info@magnolialng.com Bear Head LNG Corporation Inc. 1475 Lower Water Street, Suite 351 Halifax Nova Scotia B3J 3Z2 Canada P +1 713 986 0600 E info@bearheadlng.com Front Cover: shows an Artist s rendition of the 8.0 mtpa (design capacity) Magnolia LNG project in the Port of Lake Charles, Louisiana, USA Back Cover: shows the existing Magnolia LNG project site adjacent to the Calcasieu Ship Channel, an established shipping channel in the Lake Charles District, State of Louisiana, USA lnglimited.com.au PLATFORMCOMMS04085