88 Energy Limited — Capital/Financing Update 2021

Mar 21, 2021

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22[nd] March 2021

This announcement contains inside information

88 Energy Limited

Operations Update

88 Energy Limited (" 88 Energy " or the “ Company ", ASX:88E, AIM 88E) provides the following update related to its operations in the NPR-A region of the North Slope of Alaska.

Highlights

• Merlin-1 production hole drilling to commence imminently

• At market share subscription agreement executed

Details

88 Energy is pleased to report that the Merlin-1 surface hole was successfully drilled to 1,512ft as planned. Surface casing has now been cemented and the blow out preventer system tested. A formation integrity test (FIT) was successfully undertaken and the rig is now drilling ahead in the production hole where the primary Nanushuk targets are located. Planned total depth is 6,000’.

Logging while drilling and mudlogging will provide initial indications as to the prospectivity of the well during this part of the operation, which is expected take three to five days. A sophisticated wireline logging suite will then be run, including sidewall cores and downhole sampling. Wireline logging is expected to take five to seven days.

If the results from the wireline logging are encouraging, then the well will be completed with casing and a flow test conducted.

88 Energy has entered into a share subscription agreement with ELKO International LLC (“ELKO”), one of the major contractors for the operation. Under the agreement ELKO will be issued 360m shares at $0.018, which is a 225% premium to the placement undertaken on 12[th] February 2021. The are no fees associated with the placement.

Managing Director, Dave Wall, commented: “ The endorsement of the project by ELKO as we enter the critical phase of the drilling is encouraging and will serve to fund the Company’s share of the recently announced cost overruns.

We wish all our shareholders good fortune over the coming days.”

The issue of the New Ordinary Shares is not subject to shareholder approval as the issuance will fall within the Company's placement capacity pursuant to ASX Listing Rule 7.1A. A total of 360,000,000 shares will be issued pursuant to Listing Rule 7.1A. The New Ordinary Shares will rank pari passu with the existing ordinary shares in the Company, with settlement on Monday, 22 March 2021.

Following the issue of the New Ordinary Shares, the Company will have 12,521,590,431 ordinary shares on issue, all of which have voting rights. The figure of 12,521,590,431 ordinary shares may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change their interest in, the Company.

www. 88energy.com

ABN 80 072 964 179

PO Box 352, Subiaco WA 6904 Australia Phone +61 8 9485 0990

Ground Floor, 516 Hay Street Subiaco WA 6008

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About Project Peregrine – Imminent Drilling

Project Peregrine is located in the NPR-A region of the North Slope of Alaska and encompasses ~195,000 contiguous acres. It is situated on trend to recent discoveries in a newly successful play type in topset sands in the Nanushuk formation. 88 Energy has a 100% working interest in the project that will reduce to 50% post the completion of funding as part of a recent farm-in, whereby 88E is carried on the first US$10m (of an originally estimated US$12.6m total cost) for the Merlin-1 well.

Project Peregrine and Recent Nanushuk Discoveries

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The Merlin-1 well was spudded on 10[th] March 2021 and is targeting 645 million barrels of gross mean prospective resource[#] . Flow testing of Merlin-1 is planned, if wireline logging confirms a discovery. A second well, Harrier-1, may commence immediately following completion of operations at Merlin-1, subject to results from Merlin-1, schedule and permit approvals. Harrier-1 is targeting gross mean prospective resource of 417 million barrels[#] .

Independent Resource Assessment[#]

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Please refer to release dated 23 February 2021 for full details with respect to the Prospective Resource estimate, associated risking and applicable Cautionary Statement.

Each of the Merlin and Harrier prospects is located on trend to an existing discovery, in the same play type (Nanushuk topsets). This has de-risked the prospects considerably and resulted in a relatively high independently estimated geological chance of success.

www. 88energy.com

ABN 80 072 964 179

PO Box 352, Subiaco WA 6904 Australia Phone +61 8 9485 0990

Ground Floor, 516 Hay Street Subiaco WA 6008

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Merlin-1 – on trend to large Willow oil field

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Cautionary Statement: The estimated quantities of petroleum that may be potentially recovered by the application of a future development project relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation are required to determine the existence of a significant quantity of potentially movable hydrocarbons.

This announcement has been authorised by the Board.

Yours faithfully

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Dave Wall Managing Director 88 Energy Ltd

Media and Investor Relations:

88 Energy Ltd

Dave Wall, Managing Director

Finlay Thomson , Investor Relations

Tel: +61 8 9485 0990 Email: admin@88energy.com Tel: +44 7976 248471

EurozHartleys Ltd Dale Bryan

Cenkos Securities Neil McDonald / Derrick Lee

Tel: + 61 8 9268 2829 Tel: + 44 131 220 6939

www. 88energy.com

ABN 80 072 964 179

PO Box 352, Subiaco WA 6904 Australia Phone +61 8 9485 0990

Ground Floor, 516 Hay Street Subiaco WA 6008