BROOKSIDE ENERGY LIMITED — Capital/Financing Update 2017

Jul 30, 2017

Brookside Energy Limited ACN 108 787 720

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NEWS RELEASE 31 July 2017

Brookside Closing in on Initial 1,280 acre Target

Perth, Western Australia – 31 July 2017 - Brookside Energy Limited ( ASX: BRK ) ( Brookside or the Company ) is pleased to provide a further update on its successful leasing and acquisition activities across the Anadarko Basin Plays in Oklahoma.

Highlights

• Surge in leasing success delivers a another ~40% increase in total holdings

• STACK and SCOOP holdings increased to ~1,000 acres[i]

• Successfully targeting up-dip liquids rich “core areas” along the Anadarko Basin margin

• STACK Play results continue to impress delivering another record peak 24hour rate of 6,000 Boe per day from a Devon Energy well in Kingfisher County[ii]

• Momentum building in SCOOP with leasing, permitting and drilling activity all increasing over the last few months

• SCOOP operators now successfully conducting increased well density pilots with Continental Resources flagging 10-wells per unit in the Woodford condensate fairway

With the level of permitting, drilling and completion and development activity across the greater Anadarko Basin Plays continuing to build, Brookside through the efforts of its partner and manager of US operations Black Mesa Production, LLC (Black Mesa) is continuing to rapidly increase it’s Working Interest acreage position in this highly sought after region.

The ongoing leasing campaign and the expansion of activity foreshadowed in the Company’s 31 May 2017 announcement has already delivered a 100% increase in Brookside’s position and the Company is now closing in on its initial target of 1,280 Working Interest acres.

Brookside continues to benefit from Black Mesa’s experience, network and knowledge of the Oklahoma oil and gas leasing environment as the team successfully identifies and targets up-dip liquids rich “core areas” along the Anadarko Basin margin, securing working interest leasehold acreage in the targeted areas through the on-going leasing campaign.

In STACK, the play continues to confirm its status as a world-class play with Devon Energy Corp. (NYSE: DVN) announcing another record setting well that achieved a peak 24-hour rate of 6,000 barrels of oil-equivalent (Boe) per day (50% oil). This well is expected to recover in excess of 2 million Boe over its life.

Many of the tier-one operators are now moving into full-field development in the STACK play, successfully testing development concepts including increased well density. This move to full-field development will ensure that Brookside’s (nonoperated) acreage position is developed efficiently by the best operators at the same time delivering the highest possible returns.

In SCOOP, there are now upwards of 500 horizontal wells in production, with approximately 270 of these wells achieving initial production rates in excess of 1,000 Boe per day. In addition, several of the operators active in this part of the greater Anadarko Basin Plays have also started full-field development; including Continental Resources, Inc. (NYSE:CLR) who are testing up to ten Woodford wells in a single development unit (Honeycutt Density Pilot) and flagging a Woodford condensate single well type curve EUR of 1,725,000 Boe (17% oil).

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This map highlights Brookside’s nine currently active wells (producing, awaiting completion or drilling) relative to both the Privott well and the Honeycutt Density Pilot, which is approximately 100 miles to the south along the basin margin.

– 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 identfy 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.

i Includes non-operated working interest acreage acquired pursuant to the Drilling Program Agreement between BRK Oklahoma and Black Mesa and the RA Minerals Royalty Acreage acquired pursuant to the Acquisition Program Agreement between BRK Oklahoma and Black Mesa.

ii Initial production results taken from a Devon Energy news release dated July 11, 2017. Results included for background purposes only. BRK Oklahoma does not have an interest in this well.