HYDROCARBON DYNAMICS LIMITED — Capital/Financing Update 2017

Jul 30, 2017

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Indago undertakes Capital Raising

Fully Underwritten Rights Issue

Indago Energy announces that it will undertake a 1 for 3 fully underwritten Rights Issue at $0.07/share to raise approximately $3m.

The Rights Issue has been fully underwritten by Patersons Securities at $0.07/share, which represents a 10.3% discount to the last traded Indago share price.

All directors intend to participate in the rights issue.

The Record Date for shareholder participation is Thursday, 3[rd] August 2017 and the closing date for subscriptions is 17[th] August 2017 at 5pm AEST.

Funds Used to Accelerate HCD initiatives

Indago Energy plans to use the funds raised from the Rights Issue to allow the Company to support the participation in, or acquisition of, oil and gas projects using its newly acquired Hydrocarbon Dynamics technology as well as to build a sales team in North America to market HCD products including Multi‐Flow and for general working capital purposes.

The HCD products and technology can be applied to improve oil flow rates by the re‐liquification of naturally occurring paraffin and asphaltenes that are deposited on the walls of oil well tubulars and oil pipelines, and can also be used to recover saleable oil from sludge in storage facilities. The product has proved its effectiveness in large‐scale commercial oil wells and pipelines in Malaysia and on a smaller scale, in North America.

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

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Timetable

The indicative timetable for the Rights Issue offer is set out below:

Description	Business Day
Announcement of the Entitlement Offer	Monday 31 July
Shares traded on an “ex” entitlement basis	Wednesday 2 August
Record Date for eligibility to participate in the	Thursday 3 August
Entitlement Offer
Despatch of Entitlement Offer Booklet and Entitlement	Friday 4 August
and Acceptance Form to Eligible Shareholders
Entitlement Offer opens	Friday 4 August
Entitlement Offer closes	Thursday 17 August
Securities quoted on a deferred settlement basis	Friday 18 August
Shortfall (if any) announced to ASX	Monday 21 August
Settlement of New Shares under the Entitlement Offer	Wednesday 23 August
Issue of New Shares under Entitlement Offer	Thursday 24 August
New Shares commence trading on a normal settlement	Friday 25 August
basis

Note: The above timetable is indicative only. The Directors of the Company reserve the right to amend the record date and timetable for the issue of the Bonus Options, subject to the requirements of the Corporations Act 2001 and ASX Listing Rules.

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