CYCLIQ GROUP LTD — Interim / Quarterly Report 2012

Jul 30, 2012

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31 July 2012

Companies Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000

COMPANY’S QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 30 JUNE 2012

OVERVIEW

We have pleasure presenting a summary of the Company’s activities during the second quarter of 2012. The period continued to be a challenging environment, however the Board, management, and staff continued to make considerable progress towards laying the foundation for a strong and sustainable future for the Company.

PRODUCTION OPERATIONS

During the quarter the Dunn-McCampbell A4 well on Padre Island and three of the Sullivan City wells continued to flow a modest amount of 4,276Mcf of gas, generating revenue of some $7,637 for the Company. It should be noted that the gas production was decreased during the quarter due to access issues including bush fires on the island. Further, although gas prices have recovered some ground over this quarter they are still at very low levels, which is adversely affecting Company revenues.

ASSET REVIEW

As previously announced the Company has commenced the process to reacquire some of the lapsed leases on Padre Island by lodging application forms with the Texas General Land Office (“GLO”) to start the process of reacquiring the leases, by nominating for South Sprint 1, 2 and 3 leases in advance of the October 2012 lease auctions.

Subject to the Company being successful in reacquiring these leases then evaluation on the most appropriate action to move these assets and the other Padre Island assets forward can be completed.

Despite the current limited flow of hydrocarbons, the Company is still actively accessing options to add value to the Padre Island assets including assessing the viability of trying to re-establish at least a portion of the previously announced (October 2010) resource estimates and to evaluate with current joint venture partners, options to increase the production from the Padre Island properties to the Exxon pipeline.

The Company has now identified a number of additional sources for seismic and other technical data for Padre Island and is in the process of acquiring and reviewing this data with the intention of using this new information to assist in the process identified above.

Sprint Energy Ltd 1186 Hay Street

+61 8 9215 4299 www.sprintenergy.com.au

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Additionally, the Company is looking at ways to increase the carrying value of the substantial infrastructure that Sprint owns on Padre Island. The Company is encouraged by the current options available to add value to the Padre Island assets.

Subject to ongoing success and the completion of the reviews, the Board is hopeful that with a reasonable minimal spend (final costs yet to be determined), the Company could see an increase in production, asset value and revenue in the not too distant future.

The Company also continues to assess various other opportunities in jurisdictions outside of North America and the Company will provide an update to the market on future developments, as it progresses.

DEBT CONVERSIONS

Loans payable to Stratos Resources Limited and Leopard Resources NL

During the quarter, the Company successfully renegotiated the terms of its loans to Stratos Resources Limited (formerly Eldore Mining Corporation) and Leopard Resources NL. These negotiations resulted in both parties agreeing to convert the loans into shares of the Company at a deemed issue price of $0.02 (2 cents) per share with 29,935,840 fully paid shares being issued to Stratos Resources Limited for the conversion of a loan amount of $598,716.81 and 37,964,697 fully paid shares being issued to Leopard Resources NL for the conversion of a loan amount of $759,293.95.

These shares were issued following shareholder approval received at a general meeting of shareholders held on 29 June 2012.

Loan payable to AM Securities Pty Ltd

During the quarter, the Company executed a strategic agreement between AM Securities Pty Ltd (“AM Securities”) and Provencal Holdings (WA) Pty Ltd (“Provencal”) for the acquisition and assignment of a convertible note debt held with the Company.

Following shareholder approval at the a general meeting of shareholders held on 29 June 2012, Provencal Holdings (WA) Pty Ltd acquired 100M shares at an issued cost price of 2.5c per share. These shares will rank equally with all outstanding shares on issue with a 12 month voluntary escrow for the period applicable from time of issuing.

SETTLEMENT OF LITIGATION AND DEBT REDUCTION

During the quarter, the Company successfully renegotiated the terms of its outstanding legal claims with TPE Operating LLC and Richelou and Caerleon. The renegotiation of these amounts resulted in the Company’s financial position significantly improving. A summary of these reductions is noted below:

TPE Operating LLC

The Company successfully negotiated settlement terms in respect to outstanding legal claims brought upon the Company by TPE Operating, LLC (“TPEO”) and Five Star Capital, LLC (“Five Star”) in respect to an agreement entered into between the two parties in 2010 and the claim sent to the Company of US$794,323.89 for breach of contract, as noted in the September 2011 Quarterly Activities Report.

www.sprintenergy.com.au

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The settlement on the claim amounted to a payment of $80,000 in cash by 15 June 2012 and the issue of $100,000 in shares at a deemed issued price of $0.02 (2 cents) per share, being 5,000,000 fully paid shares under the Company’s 15% capacity. The issuance of these shares will take place within ten (10) business days of executing the agreement.

Richelou and Caerleon

On 9 May 2011, Richelou Pty Ltd (“Richelou”) and Caerleon Advisory Pty Ltd (“Caerleon”) commenced proceedings against Sprint for a claim of $919,276.84 in relation to the nonperformance by the Company under the Blackgate Sale Agreement and Blackgate Settlement Deed. Following negotiations with both parties, a settlement agreement was reached whereby the Company will pay $100,000 in cash and issue $200,000 in shares at a deemed issue price of $0.02 (2 cents) per share, being 10,000,000 fully paid ordinary shares under the Company’s 15% capacity. The issuance of these shares will take place within ten (10) business days of executing the agreement.

CORPORATE

Board Changes

During the quarter the Board welcomed the appointment of Mr Brad Boyle as Managing Director. Also during the quarter Mr Gary Roper resigned as a director of the Company and Dr Jaap Poll was appointed Non-executive Chairman.

Funding, Cash Flow and Creditor Management

During April 2012 the Company raised $500,000 and in June 2012 raised $443,400 through the use of convertible loans.

The terms of the convertible loans were as follows:

1. The issue of the shares in satisfaction of loans are subject to shareholder approval

2. Interest in calculated daily at a rate of 6% and payable at 6 months intervals

3. Termination date is 11 April 2013

4. The issue price of the shares will be the lower of $0.02 or 80% of the 5 day VWAP preceding the shareholders meeting.

During the quarter the Company applied for the quotation of 25,000,000 fully paid shares for the conversion of the April 2012 convertible loan agreements executed following shareholder approval received at a general meeting of shareholders on 29 June 2012.

www.sprintenergy.com.au

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The Company also lodged a notice of general meeting to be held on 9 August 2012 seeking shareholder approval for the conversion of the $443,400 raised through the use of convertible loans entered into during June 2012 and July 2012.

Yours sincerely Sprint Energy Ltd Mr Brad Boyle Managing Director

For further information please contact: Phone: +61 8 9215 4200 Mobile: +61 3 417 175 852 Email: brad.boyle@sprintenergy.com.au

About Sprint Energy Ltd: Sprint Energy Ltd is an independent oil and gas exploration and production Company, listed on the Australian Stock Exchange (ASX Code: SPS). Its primary focus of operations is Gulf Coast, USA.

www.sprintenergy.com.au

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