BROOKSIDE ENERGY LIMITED — Capital/Financing Update 2017

Mar 27, 2017

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28 March 2017

Australian Securities Exchange Ltd Level 40, Central Park 152-158 St Georges Terrace PERTH WA 6000

Brookside Energy Adds to STACK Well Count

Brookside Energy Limited (Brookside or the Company) is pleased to announce that it has (via it’s wholly owned subsidiary BRK Oklahoma Holdings, LLC) confirmed participation in another nonoperated Working Interest well in the STACK Play in Oklahoma .

BRK Oklahoma has elected to participate in the Herring 1-33 1513MH well in Blaine County, Oklahoma that is being operated by successful Tulsa based (private equity funded) Triumph Energy, LLC.

The Herring Well is located in the core of the STACK Play , in a part of the play that is currently the subject of significant drilling and completion activity, including a number of increased density pilots (see Figure 1. below).

The Herring Well is being drilled as a normal length lateral (640-acre unit), in a unit located approximately 5 miles west of the record setting Angus Trust 1-4-33XH well (operated by Continental Resources, Inc. (NYSE:CLR)), that produced 4,642 barrels of oil equivalent in a 24-hr test (see Figure 1.).

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Figure 1. Drilling and completion activity near Watonga in 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

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BRK Oklahoma Holdings, LLC is participating in this well with approximately 9.0% Working Interest (US$443,387.90 share of estimated drilling and completion costs). These costs have been funded via the US$3.5 million Drilling Joint Venture with Merchant Funds Management Pty Ltd.

Brookside is now participating in a total of twelve horizontal wells in the core of the world-class STACK Play (see Table below), with working interests ranging from approximately 1% to 9% (consistent with the Company’s stated strategy of accumulating minority non-operated working interest positions in as many development units as possible while the leasing opportunity continues).

Well Name	Operator	WI Acres	Status
Strack 1-2-11XH	Marathon Oil, Co.	12.5	First sales exp. June Qtr. 2017
Ike 1-20-17XH	Continental Resources, Inc.	38.0	Drilling
Davis 1-8-1611MH	Triumph Energy, LLC	7.5	Drilling
Herring 1-33 1513MH	Triumph Energy, LLC	57.2	Spudding this week
HR Potter 1511 1-3-34XH	Marathon Oil, Co.	10.2	Spudding April 2017
Sphinx 26-16N-11W 1H	Devon Energy Corp.	40.0	Spudding April 2017
Landreth BIA 1-14H	Marathon Oil, Co.	8.5	Permitted
Watonga 1-19H	Highmark Resources, LLC	1.9	Permitted
Scoville 1-17-20XH	Continental Resources, Inc.	47.4	Permitted
Kevin 1-20-17XH	Continental Resources, Inc.	21.1	Permitted
Henry Federal 1-8-5XH	Continental Resources, Inc.	66.6	Permitted
Alta BIA 1511 1-6-31MXH	Marathon Oil, Co.	16.0	Permitted

Importantly, experienced well-funded operators are operating all these wells. Several of these companies are leading the successful development of the STACK Play and have flagged very large drilling and completion capital allocations for calendar 2017 with full-field development slated for calendar 2018.

As previously announced, Brookside is moving quickly to capitalise on a short window in which to build a material premier asset position in this high-margin repeatable part of the STACK Play. These wells are the first of many that Brookside will have the opportunity to participate in through its growing non-operated working interest position in the play.

The Company is looking forward to keeping shareholders updated during 2017 with a strong pipeline of news flow expected as oil and gas sales are established, proved reserves are booked and further wells are drilled and/or added to the inventory.

- ENDS -

For further information, contact:

Loren King 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

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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

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