CENTRAL PETROLEUM LIMITED — M&A Activity 2016

Nov 20, 2016

ASX ANNOUNCEMENT AND MEDIA RELEASE

ASX CODE: CTP

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21 November 2016

Macquarie allowed non-exclusive Due Diligence

On 10 November 2016, Macquarie SCT Pty Ltd (“ Macquarie ”) made an unsolicited, indicative and non-binding proposal to acquire 100 per cent of the issued capital of Central Petroleum Limited (“ Central ” or the “ Company ”) by way of a scheme of arrangement at 17.5 cents per share (“ Proposal ”). The Board of Directors of Central determined that the Proposal is not in the best interests of shareholders.

However, the Board of Central has agreed that Macquarie can conduct confidential due diligence, with a view to Macquarie developing an improved proposal.

Macquarie is not be bound to make a formal offer and has no entitlement to any break fee if Central proceeds with another proposal.

Given the Company’s capital need to fund the further development of the Company’s gas fields, in particular the Stairway Project ahead of the expected completion of Jemena’s Northern Gas Pipeline (“ NGP ”) in 2018, the Company has not agreed to any fetter on that process as a result of granting due diligence. The NGP will link Central’s gas fields south of Alice Springs to Australia’s main gas demand centres on the eastern seaboard and which are reportedly facing significant shortages.

General Disclaimer and explanation of terms:

This document may contain forward-looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which may be outside the control of the Company and could cause actual results to differ materially from these statements. These risks, uncertainties and assumptions include (but are not limited to) funding, exploration, 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, cost estimates and other risk factors described from time to time in the Company's reports filed with the ASX. Actual values, results or events may be materially different to those expressed or implied in this document. Given these uncertainties, readers are cautioned not to place reliance on forward looking statements. Any forward looking statement in this document is valid only at the date of issue of this document. Subject to any continuing obligations under applicable law and the ASX Listing Rules, or any other Listing Rules or Financial Regulators’ rules, the Company, its agents, directors, officers, employees, advisors and consultants do not undertake any obligation to publicly update or revise any information or any of the forward looking statements in this document if events, conditions or circumstances change or that unexpected occurrences happen to affect such a statement. Sentences and phrases are forward looking statements when they include any tense from present to future or similar inflection words, such as (but not limited to) "believe," "understand", "estimate," "anticipate," "plan," "predict," "may," "hope," "can," "will," "should," "expect," "intend," “projects”, "is designed to," "with the intent," "potential," the negative of these words or such other variations thereon or comparable terminology or similar expressions or future may indicate a forward looking statement or conditional verbs such as "will," "should," "would," "may" and "could" are generally forward-looking in nature and not historical facts.

No right of the Company or its subsidiaries shall be waived arising out of this document. All rights are reserved.

Central Petroleum Limited T: +61 (0)7 3181 3800 ABN 72 083 254 308. F: +61 (0)7 3181 3855 Level 7, 369 Ann Street, Brisbane, QLD 4000, Australia info@centralpetroleum.com.au GPO Box 292, Brisbane, QLD 4001, Australia www.centralpetroleum.com.au

Media Enquiries Martin Debelle at Citadel-MAGNUS T: +61 (0)2 8234 0100 M: +61 (0)409 911 189