BEETALOO ENERGY AUSTRALIA LIMITED — Capital/Financing Update 2018

Feb 11, 2018

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EMPIRE ENERGY GROUP LIMITED Level 7, 151 Macquarie Street Sydney NSW 2000 T: 02 9251 1846 F: 02 9251 0244 (ASX: EEG)

ASX Announcement - Capital Raising Update

12 February 2018

$1.875 MILLION PLACEMENT

Further to Empire Energy Group Limited’s (“Company” or “Empire”) announcement earlier today in relation to the $1.875 million placement, the Company advises that the ASX has raised concerns with the two prices set for the proposed placement of new shares under Listing Rule 7.1 (having no minimum price requirement) and 7.1A (having a minimum price requirement) respectively to occur on the same day. This resulted in an average price of $0.0125.

The ASX has not suggested we have breached any Listing Rule but rather the spirit of the Listing Rules. We do not agree and take our compliance with the ASX Listing Rules seriously.

To put this issue beyond any doubt, the Board of Directors of the Company has determined to proceed with the capital raising of $1,875,000 by way of two tranches with both tranches being issued at $0.0125.

Tranche 1 of 75,000,000 shares to be issued at $0.0125 and allotted on 15 February 2017 under the Company’s current capacity under Listing Rule 7.1.

Tranche 2, being 75,000,000 shares at an issue price of $0.0125 to be issued under Listing Rule 7.1 subject to approval by shareholders at a General Meeting of the Company. In this respect, shareholders will shortly receive a Notice of Meeting to approve the issue of Tranche 2 shares.

ABOUT EMPIRE ENERGY GROUP LIMITED

Empire Energy is a conventional oil and natural gas producer with operations in Appalachia (New York and Pennsylvania) and the MidCon (Kansas and Oklahoma). In addition, Empire Energy holds approximately 405,000 acres (gross) of Marcellus and Utica shale in New York State, US.

In 2010, Imperial secured approximately 14.5 million acres in the McArthur Basin, Northern Territory. This area is highly prospective for conventional and unconventional hydrocarbon resources. Work undertaken by the Company over the past 7 years demonstrates that the Central Trough of the McArthur Basin, is a major Proterozoic depo-center that forms one segment of a series of extensive world class proven prolific hydrocarbon basins extending through Oman, Siberia and China, all of which contain resources of many billions of barrels of oil equivalent.