ENEGEX LIMITED — Interim / Quarterly Report 2018

Jan 30, 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 December 2018

Interest in WA-54-R Greater Cornea Fields

Enegex holds a 14.875% participating Interest in the Cornea Retention Lease WA-54-R in which the Cornea oilfield is situated.

The Cornea Retention Lease was granted following the new information gained from the Cornea–3 well in which Enegex’s predecessor company (Moby) actively participated. The Cornea Retention Lease work program was 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.

The parameters for a successful Cornea production test well have changed considerably since the Retention Lease was granted, almost entirely as a result of the reduced oil price environment. The Cornea Joint Venture has, accordingly, applied to the authorities to vary the conditions of WA-54-R as studies indicate that the project is presently not commercial.

The Cornea JV is open to potential alliances to assist in advancing Cornea.

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Figure 1 Greater Cornea Field Retention Lease Location Map

Energy Storage Innovation

Enegex is seeking other natural resource opportunities. Our initiatives also include corporate investigation and investment in the following areas:

• Strategic energy storage minerals

• Energy storage technologies

• Alternative and renewable energy sources

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R J Wright Company Secretary Melbourne, Australia 31 January 2019

Quarterly Activities Report for the quarter ended 31 December 2018

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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 December 2018

31 December 2018

• Consolidated statement of cash flows Current quarter Year to date (6 $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) (4) (c) production (d) staff costs (e) administration and corporate costs (28) (60)

• 1.3 Dividends received (see note 3) 1.4 Interest received 1 2 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 (31) (62)

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 (6
$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 256 287
4.2 Net cash used in operating activities (31) (62)
(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 225 225
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 49 32
5.2 Call deposits 176 224
5.3 Bank overdrafts
5.4 Other (provide details)
5.5 Cash and cash equivalents at end of 225 256
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 11
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: 31 January 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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