HYDROCARBON DYNAMICS LIMITED — Capital/Financing Update 2014

Jul 21, 2014

22 July 2014

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Rights Issue Raises $4 million Drilling to begin Mid-Septemb

Pryme Energy Limited (Pryme or t h e Compa n y) advises that the renounceabl e rights iss u e announ c ed o n 30 June 2 014 (Rights Issue) cl o sed on 1 7 July 2014 raising $4 million wh i ch is mainly targeted for Pryme’s Cap i tola Oil pr o ject in Tex a s. Drilling in Capitol a is scheduled to begi n mid-Sept e mber with the dr i lling of th e first two w ells. Bot h wells will intersect a ll three p r imary targ e ts, the Cline Shale, the C a nyon San d s and the B reckenrid g e Lime.

E x isting sha r eholders subscribed f or 60,499,843 new s hares (Ne w Shares) and 30,2 4 9,935 opti o ns ( O ptions), to raise A$6 0 4,998, and the und e rwriters t o the issue, Paterson s Securitie s Limited, will subscribe fo r an additi o nal 339,5 0 0,157 Ne w Shares a nd 169,7 5 0,078 Opt i ons bringi n g total fu n ds ra i sed, befor e expenses , to $4 milli o n. There w ere 116, 6 81,534 sh o rtfall share s and 58,3 4 0,767 opti o ns u n der the Ri g hts Issue.

T h e Company is also p leased to a nnounce t hat it has received e n titlement f orms for t h e 46,245, 4 22 shares offere d under th e Adjusting O ffer detail e d in the P r ospectus ( A djusting O ffer).

N e w Shares and Opti o ns will b e allotted t o Rights I ssue and the (non- D irector) Adjusting O f fer p a rticipants o n 23 July 2 014 and tr a nsaction c onfirmatio n statements will be di s patched t o shareholders subscribing t h e Rights I s sue and th e Adjusting Offer by 2 4 July 2014.

T h e Director s thank all s hareholde r s who part i cipated in t he Rights Issue and n ote that this new funding wi l l be appli e d to the C ompany’s C apitola O i l Project l o cated in t h e Permia n Basin, T e xas USA a nd w o rking capit a l and to p a y the cost s of the Rig h ts Issue.

For further inf o rmation ple a se contact:

Justin Pettett Ryan Messer Managing Director Chief Operating Officer Pryme Energy Limited Pryme Energy Limited Telephone: +61 7 3371 11 0 3 Telep h one: +1 71 3 401 9806 Website: www.prymeenergy.com ASX Code: PYM OTCQX Code: POGLY

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