ENEGEX LIMITED — Interim / Quarterly Report 2019

Apr 29, 2019

Level 21, 500 Collins Street Melbourne Victoria 3000 Australia Tel: (+61 3) 8610 4700 Fax: (+61 3) 8610 4799 Email: admin@enegex.com.au

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QUARTERLY ACTIVITY REPORT

31 March 2019

Interest in WA-54-R Greater Cornea Fields

The company holds a 14.875% working interest in the Cornea Joint Venture (Cornea JV) comprised of:

Enegex Limited	14.875%
Octanex Group (ASX Code: OXX)	18.750%
Cornea Resources Pty Ltd (Operator)	13.100%
Others	53.275%

The Greater Cornea Fields (being the Cornea, Focus and Sparkle Oil Fields and the Cornea North (Tear) Gas Field) are located in the Browse Basin, offshore from Western Australia and held via a Retention Lease (WA-54-R).

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Figure 1 Greater Cornea Field Retention Lease Location Map

The Cornea Retention Lease was granted in May 2014 following further new information gained from the Cornea–3 well in which Enegex’s predecessor, Moby Oil and Gas Limited, actively participated. The Cornea Retention Lease work program was originally formulated to address the technical challenges to development of Cornea.

The ability to achieve threshold production was then identified as the key barrier to commercialisation of Cornea, with technical characteristics of the reservoir presenting the primary

challenges to achieving threshold production. A production test well (a well designed to achieve threshold productivity and prove up well construction methods and technologies) was identified in 2013 as a key milestone for progressing commercialisation of Cornea, The Cornea Joint Venture (Cornea JV) designed a Retention Lease program consisting of studies work in the first three years of the Lease term to support a production test well in Year 4.

Commercialisation is not a static matter, with the oil price environment since late 2014 posing a significant challenge to the Cornea field’s commerciality. As a result, development concepts that were previously considered as potentially viable were rendered non-viable. Consequently, although the Cornea JV’s work completed in the first three years of the Lease supported a technically feasible well, it did not support a successful production test well indicative of commerciality. In March 2017 the Cornea Joint Venture therefore applied to the authorities in March 2017 to vary the conditions of WA-54-R.

During the quarter Cornea Joint Venture was granted a variation of title to include a new work program item of ‘integrated reservoir modelling and facilities study, including economic modelling’, albeit leaving a production test well as a work item for years 4-5 of the Retention Lease (which year ends 5 May 2019). The letter accompanying the variation of title instrument conveyed the expectation of the Commonwealth-Western Australia Joint Authority (JA) that the Joint Venture’s completion of this new work item will be a key factor in the JA’s consideration of any renewal application for the Cornea retention lease.

During the quarter the Joint Venture ramped up activities in order to complete the additional work program item of integrated reservoir modelling and facilities study which underpins our anticipated application for a five-year renewal of the Retention Lease which is about to be lodged.

Energy Minerals, Storage and Innovation

We have considered avenues where advances in energy generation, transmission and storage may present opportunities for Enegex. Our involvement may take any one or more of a variety of forms including direct participation, joint venture and equity investment.

Our initiatives have included investigations aimed at undertaking corporate investment in the following areas:

• The exploration for strategic energy, transmission and storage minerals

• Monitoring of new energy storage technologies

• Consideration of alternative and renewable energy opportunities

Other Mineral Resources Opportunities

Enegex is open to other natural resource opportunities that may present. We have considered a number of proposals to become involved in gold exploration projects being promoted by others and continue to seek opportunities to generate shareholder value.

By Order of the Board

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R J Wright

Company Secretary Melbourne, Australia 30 April 2019

Quarterly Activities Report for the quarter ended 31 March 2019

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

ENEGEX LIMITED ABN Quarter ended (“current quarter”)

28 160 818 986

31 March 2019

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Consolidated statement of cash flows Current quarter Year to date (9
$A’000 months)
$A’000
1. Cash flows from operating activities
1.1 Receipts from customers
1.2 Payments for
(a) exploration & evaluation
-
(b) development (4)
(c) production
(d) staff costs
(e) administration and corporate costs (29) (89)
1.3 Dividends received (see note 3)
1.4 Interest received 1 3
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Research and development refunds
1.8 Other (provide details if material)
1.9 Net cash used in operating activities (28) (90)
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2. Cash flows from investing activities

2.1 Payments to acquire:

• (a) property, plant and equipment

• (b) tenements (see item 10)

• (c) investments

• (d) other non-current assets

• See chapter 19 for defined terms 1 September 2016

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

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Consolidated statement of cash flows Current quarter Year to date (9
$A’000 months)
$A’000
2.2 Proceeds from the disposal of:
(a) property, plant and equipment
(b) tenements (see item 10)
(c) investments
(d) other non-current assets
2.3 Cash flows from loans to other entities
2.4 Dividends received (see note 3)
2.5 Other (provide details if material)
2.6 Net cash used in investing activities
3. Cash flows from financing activities
3.1 Proceeds from issues of shares
3.2 Proceeds from issue of convertible notes
3.3 Proceeds from exercise of share options
3.4 Transaction costs related to issues of
shares, convertible notes or options
3.5 Proceeds from borrowings
3.6 Repayment of borrowings
3.7 Transaction costs related to loans and
borrowings
3.8 Dividends paid
3.9 Other (provide details if material)
3.10 Net cash used in financing activities
4. Net increase / (decrease) in cash and
cash equivalents for the period
4.1 Cash and cash equivalents at beginning of
period 225 287
4.2 Net cash used in operating activities (28) (90)
(item 1.9 above)
4.3 Net cash used in investing activities
(item 2.6 above)
4.4 Net cash used in financing activities
(item 3.10 above)
4.5 Effect of movement in exchange rates on
cash held
4.6 Cash and cash equivalents at end of 197 197
period
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• See chapter 19 for defined terms 1 September 2016

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

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5. Reconciliation of cash and cash Current quarter Previous quarter
equivalents $A’000 $A’000
at the end of the quarter (as shown in the
consolidated statement of cash flows) to the
related items in the accounts
5.1 Bank balances 20 49
5.2 Call deposits 177 176
5.3 Bank overdrafts
5.4 Other (provide details)
5.5 Cash and cash equivalents at end of 197 225
quarter (should equal item 4.6 above)
6. Payments to directors of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to these parties included in item 1.2
6.2 Aggregate amount of cash flow from loans to these parties included
in item 2.3
6.3 Include below any explanation necessary to understand the transactions included in
items 6.1 and 6.2
7. Payments to related entities of the entity and their Current quarter
associates $A'000
7.1 Aggregate amount of payments to these parties included in item 1.2 18
7.2 Aggregate amount of cash flow from loans to these parties included
in item 2.3
7.3 Include below any explanation necessary to understand the transactions included in
items 7.1 and 7.2
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• See chapter 19 for defined terms 1 September 2016

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

8.	Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000
8.1	Loan facilities
8.2	Credit standby arrangements
8.3	Other (please specify)
8.4	Include below a description of each facility above, including the lender, interest rate and
	whether it is secured or unsecured. If any additional facilities have been entered into or are
	proposed to be entered into after quarter end, include details of those facilities as well.

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9. Estimated cash outflows for next quarter $A’000
9.1 Exploration and evaluation 20
9.2 Development
9.3 Production
9.4 Staff costs
9.5 Administration and corporate costs 30
9.6 Other (provide details if material)
9.7 Total estimated cash outflows 50
10. Changes in Tenement Nature of interest Interest at Interest
tenements reference beginning at end of
(items 2.1(b) and and of quarter quarter
2.2(b) above) location
10.1 Interests in mining See Activity Report
tenements and
petroleum tenements
lapsed, relinquished
or reduced
10.2 Interests in mining See Activity Report
tenements and
petroleum tenements
acquired or increased
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• See chapter 19 for defined terms 1 September 2016

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

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Sign here: ........................................................... Date: 30 April 2019 (Company Secretary)

Print name R.J. WRIGHT

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. See chapter 19 for defined terms 1 September 2016

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