BPH ENERGY LTD — Capital/Financing Update 2018

Nov 1, 2018

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30 October 2018

Dear Optionholder

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 potential investments in medical cannabis, and its 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 (WST) 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 2,237,474,834.

Optionholders

The terms and conditions of the options you currently hold do not entitle you to participate in the Rights Issue unless you exercise your options in time for new shares to be allotted and to be entered on the Company’s register of members on or before 5.00pm (WST) on 5 November 2018 ( Record Date ).

To exercise your options and thereby participate in the Rights Issue, you will need to deliver the following to the Company:

• a) A notice of exercise of options (attached to this letter);

• b) An option certificate (where the options are certificated) or a copy of a holding statement (where the options are uncertificated) in respect of those options to be exercised; and

• c) Payment for the exercise price in respect of those options to be exercised by way of a cheque made payable to “BPH Energy Limited”.

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

To ensure that your new shares are issued prior to the Record Date, the above must be received by the Company no later than 5 November 2018. If received after this date, the issue of new shares prior to the Record Date cannot be assured.

Before deciding whether to exercise any or all of your options, you should read the Prospectus in its entirety.

This notice is important and requires immediate attention. If you have any queries concerning the Rights Issue, or the action you are required to take to subscribe for New Shares, please contact your financial adviser or BPH’s Company Secretary, on +61 8 9328 8366.

Yours sincerely

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David Breeze CHAIRMAN