HELIOS ENERGY LTD — Capital/Financing Update 2017

Dec 26, 2017

Helios Energy Ltd

Date: 27 December 2017

$8,500,000 Capital Raising

ASX Code: HE8

Share Placement

Directors

Helios Energy Ltd (ASX Codes: HE8, HE8OA) ( Helios or Company ) is pleased to advise that it has conducted a capital raising of $8,500,000 by the issue of 132,812,500 shares at a price of 6.4 cents per share ( Placement ). The Placement was made to sophisticated and professional investors under the provisions of section 708 of the Corporations Act 2001 (Cth).

Cornerstone Investments by 2 Major Shareholders

The Placement was cornerstoned by the Company’s largest and fifth largest shareholders.

Notable Pioneer Limited (a company associated with Helios’ Chairman, Mr Ye) currently owns 394,734,485 shares in the Company which equates to a 30.75% shareholding in Helios.

Notable Pioneer Limited has agreed to subscribe for a further 81,168,828 shares at 6.4 cents per share for a further investment of $5,194,805. Due to Notable Pioneer Limited owning more than 20% of Helios and Mr Ye being a director of Helios, this investment of $5,194,805 is subject to and conditional upon the attainment of all necessary regulatory, shareholder and third-party approvals to issue these 81,168,828 shares (including Helios’ shareholders approving the issue of these 81,168,828 shares at a shareholders meeting to held in February 2018) for the purposes of:

(a) section 611, item 7 of the Corporations Act;

Hui Ye Non-Executive Chairman Richard He Managing Director Nicholas Ong Non-Executive Director Gary Steinepreis Non-Executive Director and Company Secretary

Contact Details

Australian Office

Level 3, 18 Richardson Street West Perth WA 6005 Australia PO Box 1485 West Perth WA Australia 6872

Tel +61 1300 291 195 Fax +61 8 6298 6191

USA Office

2 Riverway, 17[th] Floor Suite 1710, Houston Texas USA 77056

Tel +1 713 333 3613 Fax +1 713 583 0965

• (b) ASX Listing Rule 10.11; and

www.heliosenergyltd.com

• (c) for all other purposes.

The Company’s fifth largest shareholder Mr Zhiqiang Shan has agreed to invest a further $1,000,000 and by doing so will become the Company’s second largest shareholder.

Settlement of the Placement

Excluding the investment by Notable Pioneer, the balance of the capital raising (which is $3,305,195) will be completed by Thursday 4 January 2018. The Placement was conducted within the 15% placement capacity available to the Company in accordance with ASX Listing Rule 7.1.

Helios Energy Ltd Date: 27 December 2017

Use of Placement Proceeds

The funds raised from the Placement will be used to continue the Company’s leasing of additional acres of oil and gas mineral rights in Presidio County in close proximity to the Company’s Presidio Oil Project and for working capital.

Capital Raising Fees

In addition to the payment of standard commercial capital raising fees, the Company will issue 10,000,000 options each with an exercise price of A$0.10 and each having a term which expires on 31 December 2021 to those brokers who assisted with the $8,500,000 capital raising.

For further information, please contact:

Richard He Managing Director

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