BROOKSIDE ENERGY LIMITED — Capital/Financing Update 2017

May 22, 2017

Brookside Energy Limited ACN 108 787 720

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NEWS RELEASE

23 May 2017

Drilling and Completion Activity Surges

Perth, Western Australia – 23 May 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 in Oklahoma.

Highlights

• Thirteen wells now active across non-operated Working Interest and Mineral Royalty acreage in Oklahoma

• Maiden STACK Play well now flowing to sales (see ASX release dated 11 May 2017)

• Two more wells completed for production and flowing back (one nonoperated Working Interest well and one Mineral Royalty well)

• One well drilled and waiting on completion

• One well set to spud, with a well currently rigging up and another well spudding in June 2017

The level of activity in the STACK play and across the greater Anadarko-Ardmore Basin Plays continues to surge and it is now clear that this will continue throughout CY2017 into CY2018 as the larger operators move to full-field development.

Brookside is now participating in thirteen wells (twelve non-operated working interest wells and one mineral royalty well). These wells are at various stages of development (see table below).

Well Name	Operator	Working Interest	Status
Strack #1-2-11XH	Marathon Oil, Co.	1.0%	Flowing to Sales
Davis #1-8-1611MH	Triumph Energy, LLC	1.2%	Flow Back Underway
Ike #1-20-17XH	Continental Resources, Inc.	N/A	Flow Back Underway
Mote 1-26-23H	Rimrock Resource LLC	3.0%	Waiting on Completion
Herring 1-33 1513MH	Triumph Energy, LLC	11.5%	Set to Spud
Sphinx 26-16N-11W 1H	Devon Energy Corp.	3.1%	Rigging Up
HR Potter 1511 #1-3-34XH	Marathon Oil, Co.	0.8%	Spudding June 2017
Landreth BIA 1-14H	Marathon Oil, Co.	0.7%	Permitted
Watonga 1-19H	Highmark Resources, LLC	0.3%	Permitted
Scoville 1-17-20XH	Continental Resources, Inc.	3.7%	Permitted
Kevin 1-20-17XH	Continental Resources, Inc.	1.7%	Permitted
Henry Federal 1-8-5XH	Continental Resources, Inc.	5.2%	Permitted
Alta BIA 1511 #1-6-31MXH	Marathon Oil, Co.	1.3%	Permitted

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

The Company’s maiden well in the STACK Play (Strack 1-2-11XH well) is now flowing to sales with first revenue from this well expected in the September quarter.

The Ike #1-20-17XH well is currently flowing back as is the Davis #1-8-1611H well. Initial production rates from these wells are also expected in the September quarter.

The Herring #1-33-1513MH well is set to spud and the Sphinx #26-16-11XH well is currently rigging up.

To date drilling and completion costs of US$1,342,139.40 associated with the nonoperated Working Interest wells have been funded via the Drilling Joint Venture with Merchant Funds Management Pty Ltd.

“Following on from the success of our maiden well and first sales of oil and gas we are very pleased to see the momentum increase operationally and we are looking forward to updating our shareholders as results come to hand. The results from these wells will feed directly into value created via the significant Proved Developed and Proved Undeveloped Reserves of oil and gas that will be booked from these wells” , 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.