Star Phoenix signed a non-binding agreement with Curtin University to jointly explore, appraise and develop natural hydrogen opportunities in Western Australia.

Under the non-binding agreement, the Star Phoenix will look to put a binding agreement in place pursuant to which it will work in collaboration with the university. Both parties would undertake an initial low-cost work program over two years from execution of any agreement. The aim would be to appraise natural hydrogen production points in Western Australia, specifically in areas having a high iron-rich content and circular depressions. Any high priority areas that have the potential to produce large quantities of hydrogen, would then be analyzed to determine various parameters for potential future production.

Some of the proposed terms of the arrangement include:

• The intention to develop a clean, decarbonated energy play
• Hydrogen as the most abundant element has the potential to become one of the future sources of clean energy
• If progressed, a collaboration agreement with a national university could provide access to qualified researchers to undertake the work program in conjunction with the company
• Potential two-year work program (the intention is this will be funded by the company) aimed at establishing production potential
• All intellectual property discovered during the project will be owned by the company

The directors believe Western Australia represents significant potential for the production of natural hydrogen from the iron-rich deposits occupying over 650,000 km² (although at this stage there can be no guarantee that any natural hydrogen will be identified in economic quantities). There are two key areas of particular interest: the Yilgarn Craton and the Pilbara Craton. The concept is that water passes through the Yilgarn Craton either up deep-set fractures in this 50 km thick layer, and/or across the surface of the layer, producing hydrogen which may then either naturally escape from circular depressions across the state, or from local shallow geological traps.

At this stage the agreement is non-binding, subject to various approvals, including the preparation of documentation and negotiations may be discontinued at any time.