BROOKSIDE ENERGY LIMITED — Capital/Financing Update 2017

Aug 13, 2017

Brookside Energy Limited ACN 108 787 720

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NEWS RELEASE 14 August 2017

Initial STACK Production Rates Exceed Brookside’s Pre-drill Expectations

Perth, Western Australia – 14 August 2017 - Brookside Energy Limited ( ASX: BRK ) ( Brookside or the Company ) is pleased to provide an update on drilling and completion operations across its non-operated Working Interest and Mineral Royalty holdings across the Anadarko Basin plays in Oklahoma.

Highlights

• A total of nine wells have now spud across the Company’s Anadarko Basin play holdings

• The first five wells have delivered an average 24-hour initial production rate (IP24) of ~1,700 Boe/day

• Two of these wells achieved IP24’s above 2,000 Boe/day with the highest individual IP24 rate recorded to date ~ 2,300 Boe/day

• Three more wells are currently being completed for production, with one well currently drilling

• The total well count now stands at twenty, spread across the Company’s nonoperated Working Interest and Mineral Royalty acreage in the Anadarko Basin Plays

The level of activity within the Company’s Anadarko Basin play holdings in Oklahoma continues to increase with a total of nine wells already drilled and/or drilling. Five of these wells are in production and/or flowing back to sales, an additional three wells are currently being completed (with initial production results to follow) and one well is currently drilling.

The IP24 rates for these first five wells have exceeded Brookside’s pre-drill expectations, delivering an average rate of ~1,700 Boe/day, with two of these wells achieving IP24 rates in excess of 2,000 Boe/day. The highest individual IP24 achieved from these first five wells was ~2,300 Boe/day. These results were achieved from a mix of normal length (640-acre unit) and extended length (1,280-acre unit) laterals.

The Company is now participating in twenty wells (eighteen non-operated working interest wells and two mineral royalty wells). These wells are at various stages of development (see table below).

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Note: Working Interest percentages may increase subject the issue of final pooling orders.

“These initial production results from our first five STACK wells are very pleasing and provide our shareholders with validation that the team at Black Mesa (our partner and manager of US operations) is successfully using its experience, expertise and data gathered to delineate “sweet spots” within the liquids-rich fairways of the Anadarko Basin”, Mr. Prentice said.

Mr. Prentice, further commented; “Results like this and the success that many of the tier-one operators are having with increased density pilots are driving per-acre valuations higher (we note the recent acreage auction in Blaine County that closed at US$19,000 per acre for undeveloped acreage) as the Anadarko basin plays continue to demonstrate their world-class status”.

- ENDS -

For further information, contact:

Loren King Director and Secretary

Brookside Energy Limited Tel: (+61 8) 6489 1600 loren@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.

ABOUT BROOKSIDE ENERGY LIMITED

Brookside is an Australian publicly held company listed on the Australian Securities Exchange (ASX: BRK). The Company was established in 2004 and first listed via an Initial Public Offering in October 2005. The Company has established deep and valued relationships in the oil and gas sector over the last 10 years through its successful activities in the oil and gas sector focused on the mid-continent region of the United States. Brookside’s goal is to build value per share through a disciplined portfolio approach to the acquisition and development of producing oil and gas assets and the leasing and development of acreage opportunities.

Web http://www.brookside-energy.com.au

ABOUT 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. Black Mesa is executing a returns-based, disciplined strategy directed at the acquisition of producing properties, lower-risk development drilling opportunities and larger scale entry level acreage plays/concepts. Black Mesa’s is leveraging the extensive experience of its executive team and its Board with the latest technology and data sets that are available to identify and evaluate opportunities.

Web http://www.blkmesa.com

GLOSSARY

BOE Barrels of Oil Equivalent EUR Estimated Ultimate Recovery PDP Proved Developing Producing Reserves PUD Proved Undeveloped Reserves Type Curve Representative production profile of a well for a specific play Working Interest Percentage of ownership in a lease granting its owner the right to explore, drill and produce oil and gas from a tract of property. Working interest owners are obligated to pay a corresponding percentage of the cost of leasing, drilling, producing and operating a well or unit.