Tier 2 projects are categorized as properties where previous exploration work has identified significant geothermal potential through geophysics, temperature gradient drilling and identifiable geothermal features such as hot springs. In addition to possessing geothermal potential, these projects are located within close proximity to transmission infrastructure. Further exploration is required to confirm their resource capacity at which stage SGP will commence production assessment drilling. There are currently thirteen Tier 2 projects in SGP's pipeline. An independent assessment conducted by GeothermEx has estimated a 90% probablity (confidence level) that these project could generate 338 MW. 338 MW would equate to enough electricity to supply power to approximately 270,000 homes.