BPH ENERGY LTD — Capital/Financing Update 2018

Nov 1, 2018

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1 November 2018

Dear Shareholder

BPH ENERGY LIMITED – PRO-RATA NON-RENOUNCEABLE RIGHTS ISSUE

As announced on 24 October 2018, BPH Energy Limited (ACN 095 912 002) ( BPH ) is undertaking a 1:1 pro rata non-renounceable rights issue ( Rights Issue or Offer ) of approximately 1,186,237,417 fully paid ordinary shares ( New Shares ) to raise approximately $1,186,237. The price of New Shares under the Offer is $0.001 each ( Issue Price ). The Company lodged a prospectus for the Offer ( Prospectus ) with ASIC and ASX on 30 October 2018.

The proposed use of funds raised under the Rights Issue (net of expenses) will be used towards the Company’s existing investments in its oil and gas projects through Advent Energy Limited ( Advent ) and MEC Resources Limited ( MEC ). Further, the funds shall be used to review possible investments in medical cannabis, the Company’s biotechnology investments through Cortical Dynamics Limited ( Cortical ) as well as the expenses of the Offer and working capital.

The Offer is being made to all shareholders of the Company ( Shareholders ) named on its register of members at 5.00pm on 5 November 2018, whose registered address is in Australia or New Zealand.

New Shares will rank equally with all fully paid ordinary shares in the capital of the Company ( Shares ) already on issue.

Following completion of the Offer, the Company will have issued approximately 1,186,237,417 New Shares resulting in total Shares on issue of approximately 2,372,474,834.

Ineligible shareholders

A Shareholder who has a registered address outside Australia and New Zealand ( Ineligible Shareholder ) will not be eligible to participate in the Offer.

You are not eligible to participate in the Offer and you will not be sent a copy of the Prospectus. This decision has been made pursuant to Listing Rule 7.7.1(a) of the ASX Listing Rules after taking into consideration the costs of complying with legal and regulatory requirements in jurisdictions outside of Australia and New Zealand compared with the small number of Ineligible Shareholders and the number and value of New Shares to which they would otherwise be entitled.

If you have any queries concerning the Rights Issue, please contact your financial adviser or BPH’s Company Secretary, on +61 8 9328 8366.

Yours sincerely

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David Breeze CHAIRMAN

BPH Energy Limited ACN 95 912 002 PO Box 317, North Perth, Western Australia 6906 14 View Street, North Perth, Western Australia 6006 www@bphenergy.com.au admin@bphenergy.com.au T: +61 8 9328 8366 F: +61 8 9328 8733