BROOKSIDE ENERGY LIMITED — Capital/Financing Update 2017

May 30, 2017

Brookside Energy Limited

ACN 108 787 720

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NEWS RELEASE

31 May 2017

Expanded Leasing Activity to Trigger Next Growth Phase

Perth, Western Australia – 31 May 2017 - Brookside Energy Limited ( ASX:BRK ) ( Brookside or the Company ) is pleased to provide an update on its leasing and acquisition strategy across the prolific and highly active Anadarko Basin Plays (see Figure 1.). The Company continues to gather significant momentum as it grows its investment grade oil and gas, exploration and production business in Oklahoma.

Highlights

• Significant expansion of leasing activity to trigger next growth phase

• Follows success in Blaine County where the Company is already participating in thirteen wells

• Early identification of target areas where Brookside can leverage into a materially larger acreage position

• Using experience and expertise to delineate “sweet spots” within the updip liquids-rich parts of the Anadarko Basin margin

• Maintain disciplined rate-of-return approach for targeted acreage to generate highest value Proved Undeveloped locations

Brookside, together with its partner and manager of US operations Black Mesa Production, LLC (Black Mesa), is ramping up its leasing and acquisition activities across the liquids-rich fairways of the Anadarko Basin in Oklahoma. Specifically in the SCOOP and STACK Plays.

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Figure 1. Anadarko Basin Plays

This significant expansion of leasing activity follows the Company’s recent success in securing a core position (~500 acres[i] ) in Blaine County, where working interest leasehold acreage prices have increased significantly over the last 12 to 18months as many of the operators move towards full field development. As previously announced Brookside is now participating in thirteen wells (twelve nonoperated working interest wells and one mineral royalty well).

Black Mesa is using its experience, expertise and data gathered from the success in Blaine County to delineate earlier stage “sweet spots” within the liquids-rich fairways of the Anadarko Basin. This work has delivered an entry strategy focussed on the up-dip liquids rich parts of the basin margin, utilizing specialist knowledge of the Oklahoma land and leasing environment and regulations to target these “sweet spots”.

There are currently in excess of 100 (horizontal) rigs operating across the Anadarko Basin plays, with a large number of the well funded NYSE listed Tier-One operators (including Devon Energy, Marathon Oil, Continental Resources, Newfield Exploration and EOG Resources) targeting proven productive oil and gas reservoirs (within the liquids-rich fairways) that have historically been developed with vertical drilling, that can now be exploited with horizontal drilling. These formations (Springer, Meramec and Sycamore) sit directly above the worldclass Woodford Shale source rock, providing a stacked-pay type opportunity analogous to the Permian Basin plays of Texas.

“Following our success in Blaine County, we are now well positioned to replicate this through the early identification of a number of target areas along the liquidsrich Anadarko basin margin where we can leverage into a materially larger acreage position. Importantly, we remain committed to our disciplined rate-ofreturn approach ensuring that estimated pre-drill economics for the initial well drilled in the targeted acreage delivers a positive rate of return at current strip pricing. This approach will deliver the highest value Proved Undeveloped locations within the acreage position and generate superior returns for our shareholders as we book the reserves”, Mr. Prentice said.

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