88 Energy Limited — Capital/Financing Update 2021

Jan 31, 2021

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1[st] February 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

• Permit to Drill for the Merlin-1 well approved

• Field operations fully underway

• Rig commissioning almost complete, mobilisation expected within days

• Well spud expected in late February / early March 2021

Details

88 Energy is pleased to confirm that its Permit to Drill has been approved for the Merlin-1 well, located in the NPR-A region of the North Slope of Alaska. The permit was deemed complete by the Alaska Bureau of Land Management (“BLM”) on the 28[th] January and was submitted to the Deputy Assistant Secretary for Land and Minerals Management for approval. That approval was granted on the 29[th] January (AK time) – ahead of the expected 12[th] February approval date.

In anticipation of the approval, field operations recommenced last week with commissioning of Rig 111 nearing completion. Rig mobilisation is scheduled to commence later this week. A single lane snow road into the Merlin-1 location is expected to be finished in ~2 weeks. Spud of Merlin-1 is now expected in late February / early March 2021.

We would like to once again thank the Alaska Congressional Office and the BLM for their support of our project as well as the Deputy Assistant Secretary for Land and Minerals Management.

Managing Director, Dave Wall, commented: “ After a brief hiatus in activity, it is now back to full operations with ramp up towards the spud of Merlin-1, which is expected in around four weeks.

The support received for our project at the local and Federal level has been extremely satisfying and we are very grateful to all involved in getting things back on track.”

www. 88energy.com

ABN 80 072 964 179

Ground Floor, 516 Hay Street Subiaco WA 6008

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

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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 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 is scheduled for spud in late February / early 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, is planned to 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[#] . Harrier-1 is expected to cost ~US$7m.

Independent Resource Assessment[#]

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Please refer to the XCD Energy ASX release dated 20 May 2020 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 geologic chance of success. www. 88energy.com

ABN 80 072 964 179

Ground Floor, 516 Hay Street Subiaco WA 6008

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

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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

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

www. 88energy.com

ABN 80 072 964 179

Ground Floor, 516 Hay Street Subiaco WA 6008

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