BROOKSIDE ENERGY LIMITED — Capital/Financing Update 2016

Apr 17, 2016

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18 April 2016

Manager Announcements Company Announcements Platform ASX Compliance Pty Limited ( ASX ) Level 4, 20 Bridge Street SYDNEY NSW 2000

INITIAL DEVELOPMENT TO COMMENCE WITHIN BROOKSIDE’S RA MINERALS ROYALTY ACREAGE

Highlights:

• First extended reach horizontal well (Ike 1-20-17XH) to be drilled within Brookside’s RA Minerals Royalty Acreage (with no operating expenses or capital required from Brookside)

• Continental Resources, Inc. to be the operator of the well which is expected to target the Meramec formation which is up to 450 feet thick in this area with excellent reservoir qualities

• RA Minerals Royalty Acreage package located in the heart of the world class STACK Meramec Play

• Several operators in the play are already testing increased drilling density with successful pilots set to deliver significant upside to the currently modelled revenue stream

• Industry type curve for a single extended reach horizontal well delivers 1,700 Mboe EUR (58% oil) with 380 Mboe produced in the first 12-months (40% pre-tax ROR at current pricing)

Brookside Energy Limited ( Brookside or the Company ) is pleased to announce that development within the recently acquired RA Minerals Royalty Acreage in Blaine County, Oklahoma is set to commence with an initial extended reach horizontal well planned to be drilled.

Oklahoma Corporation Commission ( OCC ) records confirm that the proposed well (the Ike 1-20-17XH) will intersect one of the four sections included in the RA Minerals Royalty Acreage package. Brookside’s wholly owned subsidiary BRK Oklahoma Holdings LLC ( BRK Oklahoma ) acquired minerals over approximately 38 acres in this section. OCC records further confirm that Continental Resources, Inc. (NYSE.CLR) will be the operator of this well.

The RA Minerals Royalty Acreage is located in the heart of the world class STACK Meramec Play in an area that is currently subject to active development through horizontal drilling (see March 2016 Investor Presentation). The Black Mesa1 team considers the area to be highly prospective for productive Meramec, with approximately 450 feet of gross thickness and excellent reservoir qualities (see Figures 1 and 2).

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Figure 1. Central West & South Oklahoma Resource Plays

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Figure 2. STACK Meramec Activity - Blaine County, Oklahoma

Suite 9, 330 Churchill Avenue, Subiaco WA 6008 Ι PO Box 866, Subiaco WA 6904 P + 61 8 6489 1600 Ι F + 61 8 6489 1601 Ι W www.brookside-energy.com.au

With 20 rigs operating in the play and a number of large (well funded) US listed E&P Companies active (including Devon Energy, Marathon Oil, Newfield Exploration, Continental Resources and Cimarex Energy) the STACK Meramec Play is one of the most economic resource plays in North America (see Figure 3.)

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Figure 3. Oil- Weighted Breakeven Summary

As previously announced, the Black Mesa team has flagged potential for considerable upside to the presently modelled development scenario (see March 2016 Investor Presentation), including from increased drilling density. Brookside notes that a number of the companies that are currently active in the STACK Meramec Play are already proceeding with increased drilling density pilots (testing up to eight wells per section across one interval in the Upper Meramec and flagging potential for joint development of the Meramec and the Woodford Shale). Further success with these pilots would have a significant positive impact on the revenue stream from the Company’s RA Minerals Royalty Acreage acquisition.

The current industry type curve for a single extended reach horizontal well delivers an EUR of 1,700 Mboe (58% oil) with 380 Mboe produced in the first 12-months. This well generates a pre-tax rate of return in excess of 40% at current pricing (based on an estimated completed well cost of US$10 million).

Commenting on this announcement Brookside’s Managing Director David Prentice said:

“We are excited to see initial development set to commence within the RA Minerals Royalty Acreage package. The economics in this part of the play are excellent with successful increased drilling density pilots capable of delivering further upside to the currently modelled revenue stream.”

-ENDS-

For further information, contact:

Loren Jones

Non-Executive Director and Secretary

Brookside Energy Limited Tel: (+61 8) 6489 1600 loren@brookside-energy.com.au

Suite 9, 330 Churchill Avenue, Subiaco WA 6008 Ι PO Box 866, Subiaco WA 6904 P + 61 8 6489 1600 Ι F + 61 8 6489 1601 Ι W www.brookside-energy.com.au

FORWARD-LOOKING STATEMENTS AND OTHER DISCLAIMERS

This announcement may include forward-looking statements. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions, which are outside the control of Brookside Energy Limited (“Brookside Energy” or “the Company”). These risks, uncertainties and assumptions include commodity prices, currency fluctuations, economic and financial market conditions in various countries and regions, environmental risks and legislative, fiscal or regulatory developments, political risks, project delay or advancement, approvals and cost estimates. Actual values, results or events may be materially different to those expressed or implied in this announcement. Given these uncertainties, readers are cautioned not to place reliance on forward-looking statements. Any forward-looking statements in this announcement speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Brookside Energy does not undertake any obligation to update or revise any information or any of the forward looking statements in this announcement or any changes in events, conditions or circumstances on which any such forward looking statement is based.

This announcement does not constitute investment advice. Neither this announcement nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. Shareholders should not rely on this announcement. This announcement does not take into account any person's particular investment objectives, financial resources or other relevant circumstances and the opinions and recommendations in this announcement are not intended to represent recommendations of particular investments to particular persons. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.

The information set out in this announcement does not purport to be all-inclusive or to contain all the information, which its recipients may require in order to make an informed assessment of Brookside Energy. You should conduct your own investigations and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this announcement.

To the fullest extent permitted by law, the Company does not make any representation or warranty, express or implied, as to the accuracy or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this announcement. No responsibility for any errors or omissions from this announcement arising out of negligence or otherwise is accepted.

NOTE 1. ABOUT BLACK MESA PRODUCTION LLC

Black Mesa Production, LLC ( Black Mesa ) is an Oklahoma domiciled limited liability company established for the purpose of identifying and exploiting opportunities in the upstream oil and gas sector on-shore in the United States.

Black Mesa was capitalized via an agreement between the Tulsa Equity Group, BRK Oklahoma (a wholly owned subsidiary of Brookside Energy Limited) and the Incentive Members of Black Mesa. The Tulsa Equity Group and BRK Oklahoma have acquired 50% of Black Mesa (Tulsa Equity Group 35% and BRK Oklahoma 15%) by agreeing to fund their pro-rata share of US$3.126 million in start-up capital over three years. The Incentive Members are earning the remaining 50% of Black Mesa as executives of the Company.

The Tulsa Equity Group is made up of some of the members of the Board of Black Mesa but does not include Chris Girouard or any of the Directors and/or Officers of Brookside and/or BRK Oklahoma (personally or beneficially). The Incentive Members include some members of the Black Mesa executive team. None of the Directors and/or Officers of Brookside and/or BRK Oklahoma (personally or beneficially) are Incentive Members. None of the Directors and/or Officers of Brookside and/or BRK Oklahoma (personally or beneficially) are members of or hold equity in the Tulsa Equity Group or Black Mesa.

Black Mesa’s executive team is comprised of Chris Girouard (President and CEO), John Schumer (Vice President Reservoir Engineering), James Eddleman (Senior Geologist) and Lee Francis (Vice President Operations).

Suite 9, 330 Churchill Avenue, Subiaco WA 6008 Ι PO Box 866, Subiaco WA 6904 P + 61 8 6489 1600 Ι F + 61 8 6489 1601 Ι W www.brookside-energy.com.au