Energy SpA — Audit Report / Information 2014

Apr 29, 2015

Gaffney, Cline & Associates Limited

Bentley Hall, Blacknest Alton, Hampshire GU34 4PU, UK Telephone: +44 (0)1420 525366

www.gaffney-cline.com

MIH/kab/EL-14-221700/0674 28th April, 2015

Form 51-101F2 Report on Reserves Data by Independent Qualified Reserves Evaluator or Auditor

To the Board of Directors of Iona Energy Inc (the "Company"):

• 1. Gaffney, Cline & Associates (GCA) has evaluated the Company's reserves data as at 31st December, 2014. The reserves data are estimates of proved reserves and probable reserves and related future net revenue as at 31st December, 2014, estimated using forecast prices and costs.
• 1. The reserves data are the responsibility of the Company's management. GCA's responsibility is to express an opinion on the reserves data based on an evaluation.

GCA carried out its evaluation in accordance with standards set out in the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook") prepared jointly by the Society of Petroleum Evaluation Engineers (Calgary Chapter) and the Canadian Institute of Mining, Metallurgy & Petroleum (Petroleum Society).

• 1. Those standards require that GCA plans and performs an evaluation to obtain reasonable assurance as to whether the reserves data are free of material misstatement. An evaluation also includes assessing whether the reserves data are in accordance with principles and definitions presented in the COGE Handbook.
• 1. The following table sets forth the estimated future net revenue (before deduction of income taxes) attributed to proved plus probable reserves, estimated using forecast prices and costs and calculated using a discount rate of 10 percent, included in the reserves data of the Company evaluated by GCA for the year ended 31st December, 2014, and identifies the respective portions thereof that GCA has evaluated and reported on to the Company's management:

Independent Qualified Reserves Evaluator or	Description and Preparation Date of Audit	Location of Reserves (Country or Foreign Geographic	Net Present Value of Future Net Revenue Millions of United States Dollars (MMU.S.\$) (before income taxes, 10% discount rate) Audited Evaluated Reviewed Total
Auditor GCA	Report Evaluation of Iona Energy's Reserves as at 31st December, 2014 completed April, 2015	Area) UK Sector of the North Sea		870.83		870.83
Totals			Nil	870.83	Nil	870.83

• 1. In GCA's opinion, the reserves data respectively evaluated by GCA have, in all material respects, been determined and are in accordance with the COGE Handbook, consistently applied. GCA expresses no opinion on the reserves data that were reviewed but that GCA did not evaluate.
• 1. GCA has no responsibility to update its reports referred to in paragraph 4 for events and circumstances occurring after their respective preparation dates.
• 1. Because the reserves data are based on judgements regarding future events, actual results will vary and the variations may be material.

Executed as to our report referred to above:

Gaffney, Cline and Associates (GCA) Bentley Hall Blacknest, Alton Hampshire, GU34 4PU United Kingdom

John Barker 28th April, 2015