HYDROCARBON DYNAMICS LIMITED — Capital/Financing Update 2017

Aug 20, 2017

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Notification of Shortfall for Entitlement Offer

Indago Energy Limited ( ASX: DRG ) (“ Indago ” or “ the Company ”) is pleased to confirm the Company’s pro rata non‐renounceable entitlement offer (“ Entitlement Offer ”) of one New Share offered for every three shares held by Eligible Shareholders at an issue price of $0.07 per share closed at 5:00pm EST on 19 August 2017.

The Company gives notice of the shortfall of subscriptions pursuant to the Entitlement Offer as follows:

• (a) The Company received acceptances from 133 Eligible Shareholders for a total of 16,408,597 New Shares raising $1,148,601; and

• (b) The number of New Shares offered pursuant to the Offer was 43,579,892, resulting in a shortfall of 27,171,295 New Shares (“Shortfall”).

In accordance with the terms of the underwriting agreement, the Shortfall of 27,171,295 New Shares (approximately $1,901,991 million) will be taken up in full by the Underwriter to the Offer.

The allotment and issue of the New Shares under the Offer will occur on Thursday, 25 August 2017. It is anticipated that normal trading of the New Shares will commence on Friday, 26[th] August 2017.

The Board of Directors wishes to thank shareholders and the Underwriters for their participation in the Entitlement Offer.

For further information please contact:

Stephen Mitchell Julie Edwards Chairman Company Secretary

Telephone: +61 3 9642 2899 Website: www.indagoenergy.com

ABN: 75 117 387 354 Tel: +61 3 9642 2899 | Fax: +61 3 9642 5177 Level 6, 412 Collins Street, Melbourne VIC 3000 Australia