Announcement PDF 5 August 2020 Placement and Share Purchase Plan to Accelerate Growth Highlights: $3.0 million received in commitments to support growth through FY21 Addition of institutional investors and funds to register $1.0 million share purchase plan for shareholders Locality Planning Energy Holdings Limited (ASX: LPE) (the Company or LPE) is pleased to announce that the Company has received commitments from qualified, institutional, sophisticated and professional investors to raise $3 million (before costs) through the issue of 12,000,000 fully paid ordinary shares in the Company (Shares) at an issue price of $0.25 per Share (Placement). To enable Eligible Shareholders (as defined below) the opportunity to participate in the capital raising at $0.25 per Share, the Company is also pleased to announce the details of a Share Purchase Plan (SPP), which will be offered to Eligible Shareholders on or about 10 August 2020 to raise up to a further $1.0 million through the issue of 4,000,000 Shares on similar terms to the Placement. The Company has a number of shareholders with unmarketable parcels of Shares and the SPP provides Eligible Shareholders with an unmarketable parcel of Shares with the opportunity to obtain a marketable parcel without the usual transaction costs such as brokerage. Use of funds raised under the Placement and SPP The Company has a clear vision and a highly capable team, backed by an appropriate strategy that is aligned with the changes made at both a Board and Management level earlier this year. The Company intends to use the funds raised under the Placement and the SPP to fund its working capital requirements to continue growing the Company’s customer base along with accelerating the roll out of LPE’s emerging and innovative shared solar energy product. PAC Partners Securities Pty Ltd acted as sole lead manager to the Placement. Commenting on the fundraising, LPE's Chairman, Justin Pettett said “The support shown by new and existing shareholders has been most encouraging, broadening the Company’s share register for the next stage of growth as LPE builds on our stated objectives. As the business environment adapts to the new norm, we have targeted healthy growth in FY21 and with improved business scale we anticipate having a clear pathway to sustainable profitability over the near-term. These are exciting times for the Company and our shareholders.” Placement The Placement will be made at an issue price of $0.25 per Share issuing 12,000,000 Shares to raise $3 million (before costs). The Placement was priced at a 24.2% discount to the closing price of the Shares traded on the ASX on 30 July 2020 the trading day before the commencement of the trading halt prior to announcement of the capital raising. The Shares are expected to be issued on 10 August 2020 with 6,978,926 Shares to be Locality Planning Energy Holdings Ltd (ASX: LPE) T1.306 55 Plaza Parade, Maroochydore QLD 4558 Telephone 1800 040 168 www.localityenergy.com.au ACN 147 867 301 Page | 1 issued utilising the Company’s placement capacity under Listing Rule 7.1 and 5,021,074 Shares will be issued utilising the Company’s 7.1A placement capacity. In identifying investors to participate in the Placement, the Company looked to approach new unrelated qualified, institutional, sophisticated, and professional investors to further broaden the ownership and awareness of LPE. Due to strong interest received in the Placement, scale back was required when allocating available Shares. The allocation policy sought to provide existing shareholders (outside of the Directors’ and Senior Management who did not participate in the capital raising) who sought to bid into the Placement with their pro-rata allocation. Beyond this, remaining Shares available under the Placement were allocated to new shareholders, with a focus on investors who had expressed a desire to be long term supporters of the Company. Share Purchase Plan The Company will offer Eligible Shareholders the opportunity to participate in the SPP. Under the SPP, Eligible Shareholders will have the opportunity to apply for up to A$30,000 worth of fully paid ordinary shares in the Company (Shares) at an issue price of $0.25 per Share (the same price as the Placement) without having to pay brokerage or other transaction costs (Offer). The SPP aims to raise up to a further A$1.0 million. If applications under the SPP exceed $1.0 million the Company will scale back applications on a pro-rata basis. Further details will be provided in the SPP offer booklet. Participation in the SPP is optional and is open to all shareholders who were registered as a holder of Shares as at 5.00pm (AEST) on 4 August 2020 (Record Date) and whose registered address is in Australia or New Zealand (Eligible Shareholders). The proposed timetable for the Offer is set out below however the Directors reserve the right to vary the dates and times without notice. Date 5.00pm Brisbane time 4 August 2020 11 August 2020 Event Record Date 11 August 2020 28 August 2020 Despatch SPP Offer Document Opening Date Closing Date 2 September 2020 7 September 2020 8 September 2020 Announce results Issue Date Despatch Date Description Date on which the Company determined the Eligible Shareholders Offer materials dispatched to Eligible Shareholders including a personalised application. Offer opens at 9.00am AEST. Offer closes. Applications must be received by 5.00pm AEST on the Closing Date. Announce results of the SPP Shares issued Holding statements sent to shareholders Full details of the Offer will be set out in a letter to shareholders, the SPP terms and conditions and an application form for Eligible Shareholders (SPP Documents). A copy of the SPP Documents will also be lodged with the ASX. Authorised by the Board. Locality Planning Energy Holdings Ltd (ASX: LPE) T1.306 55 Plaza Parade, Maroochydore QLD 4558 Telephone 1800 040 168 www.localityenergy.com.au ACN 147 867 301 Page | 2 Contact: Daniel Seeney Company Secretary investors@localityenergy.com.au ENDS About LPE LPE is the local Aussie electricity provider that cares about the needs of Australians and currently supplies electricity to tens of thousands of customers. Our mission is to keep things simple and be honest about the costs of electricity – to save the most amount of money for the most amount of people. This means no confusing contracts, just simple savings, and honest electricity. The LPE product range includes solutions across electricity, solar, embedded networks, centralised hot water, and billing services for other utilities. In January 2016, LPE was listed on the ASX and quickly developed a reputation as an energy supply specialist in strata communities throughout South-East Queensland. Two years later in 2018 the Company received financial backing from investment giant BlackRock. Locality Planning Energy Holdings Ltd (ASX: LPE) T1.306 55 Plaza Parade, Maroochydore QLD 4558 Telephone 1800 040 168 www.localityenergy.com.au ACN 147 867 301 Page | 3