HELIOS ENERGY LTD — Capital/Financing Update 2018

May 1, 2018

Helios Energy Ltd

Date: 2 May 2018

Oil to Surface - Quinn Creek 141

ASX Code: HE8

Helios Energy Ltd (ASX Code: HE8 and HE8OA) ( Helios or Company ) has commenced testing the Austin Chalk equivalent section in the Quinn Creek 141 well.

Oil to Surface from Austin Chalk equivalent section

Oil and gas have been recovered from the Austin Chalk equivalent section in the first behind pipe test in the Quinn Creek 141 well. A naturally fractured zone of 10 feet was perforated between 4,968 and 4,978 feet at 1 shot per foot and then acidized with a small amount (1200 gallons) of acid. The well initially flowed back 17 barrels of load water. Oil and gas were then recovered during the subsequent swabbing with the oil cut reaching 20%-30% of the swabbed fluids. Oil and water samples have been sent to the lab to analyze so to compare the oil recovered in Quinn Mesa 113 from the Austin Chalk equivalent section and the oil recovered from the muds pits during the drilling of Quinn Creek 141 at 3,400 feet. The well then began flowing a small rate of gas (25 mcfpd) with 45 psi pressure.

Helios will now move up hole and test the next interval in the Austin Chalk equivalent section with an increased acid stimulation. The plan is to test several thin zones individually over a 243 feet interval of the Austin Chalk equivalent section which had oil and gas shows, are naturally fractured and have logged pay. If warranted, and subsequent to these individual zones being tested, Helios will proceed to fracture stimulate the entire 243 feet as a single stage frack job.

No evidence of high rates of fresh water have been encountered in the testing of the Austin Chalk equivalent section.

Prior to testing the Austin Chalk equivalent section, the Buda Carbonate, lower Eagle Ford (Boquillas Limestone) and upper Eagle Ford Shale were tested separately in the open (uncased) hole between 5000 and 6000 feet.

Directors

Hui Ye Non-Executive Chairman Richard He Managing Director Robert Bearden Non-Executive 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

www.heliosenergyltd.com

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Helios Energy Ltd Date: 2 May 2018

These open hole tests did not recover any hydrocarbons. High rates of fresh water were recovered showing very high permeability. This bodes well for testing the Buda Carbonate, the lower Eagle Ford (Boquillas Limestone) and upper Eagle Ford Shale at a location higher up on structure. The recently completed seismic and surface geological fieldwork has identified nearby up dip locations from which the site of the third well in the Presidio Oil Project will be selected. The location for the third well in the Presidio Oil Project is expected to be determined within the next 2 weeks and drilling is now planned to commence in mid-June 2018.

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.

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