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 twelve Tier 2 projects in SGP's pipeline.