HYDROCARBON DYNAMICS LIMITED — Capital/Financing Update 2020

Apr 2, 2020

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3 April 2020

HCD Rights Issue

Rights Issue

Hydrocarbon Dynamics Limited (HCD) recently announced that it would undertake a 1 for 5 Rights Issue at 1.5 cents per share to raise up to $846,233.

As announced on 27 March 2020, all HCD directors have committed to participate in the issue and Messr’s Mitchell, Shorrocks and Seaton have stated their intention to support the rights issue for their full allocation. HCD’s largest shareholder has also expressed its’s intention to fully participate for its 9.4% entitlement.

The rights issue will be partly underwritten by Messr’s Mitchell and Shorrocks through their related parties, Mawallok Pastoral Company Pty Ltd and Spring Street Holding Pty Ltd. The partial underwriting applies to a total of $64,607 of acceptances of entitlements by shareholders associated with them, with the balance, up to the agreed underwriting amount of $271,820, relating to a commitment to take up this balance out of any shortfall of acceptances from other shareholders. No underwriting fees will be applicable.

A broker has not been engaged for this pro-rata, non-renounceable rights issue.

The directors reserve the right to place any shortfall at their discretion for a period of three months following the close of the issue. Shareholders will be invited to apply for additional shares on top of their entitlement to be satisfied out of any shortfall of acceptances from other shareholders.

The Record Date for shareholder participation is Wednesday 8 April 2020 and the closing date for subscriptions is 28 April 2020 at 5pm AEST.

HCD plans to use the funds raised from the Rights Issue to allow the Company to accelerate its sales and marketing efforts for its key product, HCD Multi-Flow® as well as for general working capital purposes.

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:

Key Dates

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----- Start of picture text ----- Event DateAnnouncement of key dates and 3B Friday, 3 April 2020Shares traded on an “ex” entitlement basis Tuesday, 7 April 2020Record Date for eligibility to participate in the EntitlementWednesday, 8 April 2020OfferDespatch of Entitlement Offer Booklet and Entitlement andAcceptance Form to Eligible Shareholders Thursday, 9 April 2020Entitlement Offer opens Thursday, 9 April 2020Entitlement Offer closes Tuesday, 28 April 2020Securities quoted on a deferred settlement basis Wednesday, 29 April 2020Results and shortfall (if any) announced to ASX Friday, 1 May 2020Settlement of New Shares under the Entitlement Offer Monday, 4 May 2020Issue of New Shares under Entitlement Offer Monday, 4 May 2020Despatch of Holding Statements Tuesday,5 May 2020New Shares commence trading on a normal settlement basis Tuesday, 5 May 2020----- 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