BROOKSIDE ENERGY LIMITED — Capital/Financing Update 2021

Feb 3, 2021

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Orion Project Joint Venture Thelma Well Update – Production and Sales

Perth, Western Australia – 4 February 2021 – Brookside Energy Limited (ASX: BRK) ( Brookside ) and Stonehorse Energy Limited (ASX: SHE) ( Stonehorse ) (the Companies ) are pleased to provide an update on production and sales for the Thelma 12-1 well (the Thelma Well) , located in the SCOOP Play, northeast of Brookside’s SWISH Area of Interest ( SWISH AOI ).

The Companies are pleased to announce that a second load of oil (~300 barrels) was sold on January 20, 2021. The reservoir continues to perform as expected and is being produced in a safe and efficient manner aimed at maximising future oil recovery and revenue. The team continues to analyse technical data from the Thelma Well to identify other potential behind pipe zones or workover candidates.

Technical work is continuing on the additional 40 “held by production” ( HBP ) acres acquired contiguous to the Thelma acreage (see ASX announcement 13 January 2021). With 7 known potential reservoirs, all of which are proven producers in the area, a thorough geological, geophysical, and engineering review will ensure optimum well design and placement of any future low-cost vertical wells.

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This announcement has been authorised for release by the Boards of Directors of Brookside Energy Limited and Stonehorse Energy Limited.

For further information, contact:

David Prentice Managing Director Brookside Energy Limited Tel: (+61 8) 6489 1600 david@brookside-energy.com.au

Sarah Lenard Partner Advisir, Investor & Media Relations Tel: (+61 4) 32 332 905 sarah.lenard@advisir.com.au

David Deloub Executive Director Stonehorse Energy Limited Tel: (+61 8) 6489 1600 David@stonehorseenergy.com Omar Taheri Founder SparkPlus Tel: +65 8111 7634 omar@sparkplus.org

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 and/or Stonehorse Energy Limited (“Brookside Energy”, “Stonehorse 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 and Stonehorse Energy do 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 or Stonehorse 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 Energy is a Perth-based ASX listed company that generates shareholder value by developing oil and gas plays in the United States, specifically the Anadarko Basin in Oklahoma. The Anadarko Basin is a proven Tier One oil and gas development province with significant existing oil and gas gathering and transportation infrastructure, a competitive and highly experienced oil and gas service sector, and a favourable regulatory environment. Brookside is executing a “Real Estate Development” approach to acquiring prospective acreage in the Anadarko Basin and adding value to it by consolidating leases and proving up oil and gas reserves. The Company then has the option of selling the revalued acreage or maintaining a producing interest. The Company is now set to scale-up its activities and asset base significantly with its operated- interests in the SWISH AOI. Web http://brookside-energy.com.au

About Stonehorse Energy Limited

Stonehorse Energy is a Perth-based ASX listed oil and gas exploration and production company which currently has working interests in a number of producing oil and gas assets located in Oklahoma and Texas in the United States. The Company’s overall objective is to be cashflow accretive by building a portfolio of working interests in high quality producing assets delivering a return on investment to its shareholders reflecting risk appetite and capital availability. Web http://www.stonehorseenergy.com

About Black Mesa Energy, LLC

Black Mesa Energy LLC, a Brookside Energy Limited controlled subsidiary, is a Tulsa-based oil & gas exploration and production company focused on profitable development of petroleum properties located in the Mid-Continent oil province of the United States. Our lean and highly specialized technical and operations team is committed to providing attractive returns for our investors and shareholders by generating and drilling high quality oil and gas prospects. The founders of Black Mesa have worked together for over 30 years at companies they previously founded, including Medallion Petroleum, InterCoast Energy and Brighton Energy. Over the course of their careers, the Black Mesa team has drilled hundreds of horizontal wells and thousands of vertical wells in numerous mid-continent oil and gas basins. In addition to the financial backing from the Black Mesa shareholders, Black Mesa partners with outside investors on larger-scale projects by offering non-operated direct working interest participation. Web http://www.blkmesa.com

GLOSSARY

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APO WI After pay out working interest
AFIT After Federal Income Tax
AOI Area of Interest
BFIT Before Federal Income Tax
BOE Barrels of Oil Equivalent
COPAS Council of Petroleum Accountants Societies
Development Unit Development Unit or drilling spacing unit is the geographical area in which an initial oil and/or gas
or DSU well is drilled and produced from the geological formation listed in a spacing order. The spacing unit
communitizes all interest owners for the purpose of sharing in production from oil and/or gas wells in
the unit. A spacing order establishes the size of the unit; names the formations included in the unit;
divides the ownership of the unit for the formations into the “royalty interest” and the “working interest”;
Only one well can be drilled and completed in each common source of supply. Additional wells may
be drilled in a Development Unit, but only after an Increased Density Order is issued by the Oklahoma
Corporation Commission.
Force Pooled The Oklahoma Corporation Commission is authorized to establish well spacing and drilling units
covering any common source of supply of hydrocarbons, or any prospective common source
of supply. Once the unit is established, the Commission can force pool the interests of all the
owners who own interests in that unit and who have not voluntarily joined in the development
of that unit.
MBOE 1,000 barrels of oil equivalent
Mcf 1,000 cubic feet
MMBOE 1,000,000 barrels of oil equivalent
NPV10 The net present value of future net revenue, before income taxes and using a discount rate of 10%.
NRI Net Revenue Interest
PDP Proved Developed Producing Reserves
Pooling The pooling agreements facilitate the development of oil and gas wells and drilling units. These
Agreements binding pooling agreements are between the Company and the operators
Prospective Prospective Resources are those quantities of petroleum which are estimated, on a given date, to be
Resource potentially recoverable from undiscovered accumulations.
PUD Proved Undeveloped Reserves
Reserve These reserve categories are totalled up by the measures 1P, 2P, and 3P, which are inclusive of all
Categories reserve types:
 "1P reserves" = proven reserves (both proved developed reserves + proved undeveloped
reserves).
 "2P reserves" = 1P (proven reserves) + probable reserves, hence "proved AND probable."
 "3P reserves" = the sum of 2P (proven reserves + probable reserves) + possible reserves, all
3Ps "proven AND probable AND possible.
STACK Sooner Trend Anadarko Basin Canadian and Kingfisher Counties – oil and gas play in the Anadarko
Basin Oklahoma
SCOOP South Central Oklahoma Oil Province - oil and gas play in the Anadarko Basin Oklahoma
SWISH AOI Description of Brookside’s Area of Interest in the SCOOP 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
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