HELIOS ENERGY LTD — Capital/Financing Update 2017

Dec 3, 2017

Helios Energy Ltd

Date: 4 December 2017

Seismic Programme and Well Testing

ASX Code: HE8

Seismic Programme

Directors

Helios Energy Ltd (ASX Code: HE8)( Helios or Company ) has commenced works on a small 3D and 2D seismic programme at its Presidio Oil Project located in Presidio County, Texas, USA.

The 3D seismic programme will be shot during the last 2 weeks of December 2017 across a 2 square mile area which covers its Quinn Creek 141 well and its Quinn Mesa 113 well and the ground in between the 2 wells.

The 2D line of seismic to be shot is approximately 4 miles in length and will cover a line of east-west orientation between the Quinn Creek 141 well and the Quinn Mesa 113 well and their proximate surrounds.

Hui Ye Non-Executive Chairman Richard He Managing Director Nicholas Ong Non-Executive Director

Gary Steinepreis Non-Executive Director and Company Secretary

Contact Details

The full interpretation of both seismic data sets will take approximately 8 weeks to complete and therefore will be finished by 28 February 2018.

Quinn Mesa 113 Well

The Company will begin perforating and testing the Quinn Mesa 113 well in the last 3 weeks of December 2017.

The Company’s Quinn Mesa 113 vertical well was spud by Helios, as Operator, on 16 June 2017, approximately 2 miles due east of the Quinn Creek 141 surface location.

Quinn Mesa 113 was drilled to a TD of 4,000 feet. Several oil and gas shows were recorded during drilling between 2,400 and TD. Logs were then run and interpretation of those logs indicated zones worthy of testing. Casing was then run and cemented into place in order to protect the oil and gas shows encountered.

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

www.heliosenergyltd.com

Quinn Creek 141 Well

The Company will begin perforating and testing the Quinn Creek 141 well

Helios Energy Ltd Date: 4 December 2017

immediately after it has completed testing the Quinn Mesa 113 well.

Quinn Creek 141 well was spud by Helios as Operator on 23 April 2017 and was planned to be drilled to a total depth ( TD ) of 6,000 feet to test a large faulted anticline with targets in the San Carlos Sandstone, Eagle Ford Shale, Buda Carbonate and Edwards Limestone formations.

The well was initially drilled to 5,000 feet. After logging, 5.5 inch well casing was run to protect oil and gas shows encountered between 3,000 and 4,500 feet and a zone where oil to surface was recorded in mud pits.

The well was subsequently drilled with slim-hole equipment to TD and then logged and suspended to await completion.

Leasing Programme

The Company is continuing its active leasing programme targeting potentially prospective areas in the Presidio Oil Project area.

For further information, please contact:

Richard He

Managing Director

Competent Person's Statement

This information in this ASX announcement is based on information compiled or reviewed by Stephen Hermeston. Mr. Hermeston is a qualified petroleum geologist with over 35 years of experience in North America, South America, Africa, Middle East, Far East, Europe and other international areas involving technical, operational and executive aspects of petroleum exploration and production, in both onshore and offshore environments. He has extensive experience in petroleum exploration, appraisal and reserve and resource estimation and well as in identifying and evaluating new oil and gas ventures. Mr. Hermeston has a Bachelors degree in Geology and is a member of the American Association of Petroleum Geologists.