HYDROCARBON DYNAMICS LIMITED — Capital/Financing Update 2018

Jul 11, 2018

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12 July 2018

Indago Undertakes Rights Issue

Rights Issue

Indago Energy announces that it will undertake a 1 for 5 Rights Issue at 7.4 cent per share to raise approximately $2.6m. This price represents an 8% discount to the 5 day VWAP.

Peloton Capital Pty Ltd has been appointed to manage the Rights Issue and to assist the Directors to place any shortfall.

All directors intend to participate in the rights issue.

The Record Date for shareholder participation is Wednesday, 18 July 2018 and the closing date for subscriptions is 1 August 2018 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 accelerate its sales and marketing efforts for it key product, HCD MultiFlow, to support its upstream activities including the appraisal of its oil and gas projects in Kentucky and Utah as well as for general working capital purposes.

In Kentucky where Indago recently announced a successful core hole and maiden oil resources, Indago expects to undertake several experimental production tests using MultiFlow with different delivery mechanisms to assess if the substantial oil resources can be commercially exploited.

In Utah, the Company would like to expand its interests in the oil rich sand of Asphalt Ridge and to conduct preliminary tests on sand samples from nearby deposits to understand MultiFlow’s ability to extract oil from these sands.

For its sales and marketing efforts, Indago plans to expand its team in the north America and to aggressively pursue the numerous sales initiatives currently underway and to conduct numerous field and laboratory tests to support these opportunities (see Market Update released today to the ASX).

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:

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----- Start of picture text ----- Description Business DayAnnouncement of the Entitlement Offer Thursday, 12 July 2018Shares traded on an “ex” entitlement basis Tuesday, 17 July 2018Record Date for eligibility to participate in the Entitlement Offer Wednesday, 18 July 2018Despatch of Entitlement Offer Booklet and Entitlement andThursday, 19 July 2018Acceptance Form to Eligible ShareholdersEntitlement Offer opens Thursday, 19 July 2018Entitlement Offer closes Wednesday, 1 August 2018Securities quoted on a deferred settlement basis Thursday, 2 August 2018Shortfall (if any) announced to ASX Friday, 3 August 2018Settlement of New Shares under the Entitlement Offer Tuesday, 7 August 2018Issue of New Shares under Entitlement Offer Wednesday, 8 August 2018Despatch of Holding Statements and New Shares commenceThursday, 9 August 2018trading on a normal settlement basis----- End of picture text -----

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 shares, subject to the requirements of the Corporations Act 2001 and ASX Listing Rules.

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