HYDROCARBON DYNAMICS LIMITED — Share Issue/Capital Change 2016

May 23, 2016

Notification of Consolidation/Split

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Notification of Consolidation/Split

Announcement Summary

Entity name

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----- Start of picture text ----- PRYME ENERGY LIMITEDApplicable security for the reorganisationPYM ORDINARY FULLY PAIDPYMO OPTION EXPIRING 23-JUL-2016PYMAA OPTION EXPIRING 23-JUL-2016 EX 2CAnnouncement TypeUpdate to previous announcementDate of this announcementTuesday May 24, 2016Reason for the UpdateNotification of the number of securities on issue post consolidationRefer to below for full details of the announcementAnnouncement DetailsPart 1 - Entity and announcement details1.1 *Name of +EntityPRYME ENERGY LIMITEDRegistration Number1.2 *Registered Number TypeACN 1173873541.3 *ASX issuer codePYM1.4 *The announcement isUpdate/amendment to previous announcement1.4a Reason for update to a previous announcementNotification of the number of securities on issue post consolidation1.4b * Date of previous announcement(s) to this updateWednesday May 18, 2016----- End of picture text -----

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*1.5 Date of this announcement

Tuesday May 24, 2016

*1.6 Securities affected by the reorganisation

PYM ORDINARY FULLY PAID PYMO OPTION EXPIRING 23-JUL-2016 PYMAA OPTION EXPIRING 23-JUL-2016 EX 2C

Part 2 - Approvals

*2.1 Are any of the below approvals required for the reorganisation before business day 0 of the timetable?

• Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval

• FIRB approval

• Another approval/condition external to the entity required to be given/met before business day 0 of the timetable for the reorganisation.

Yes

2.2 Approvals

**Approval/Condition Date for determination Is the date estimated Approval +Security holder Wednesday May 18, or actual? received/condition approval 2016 Actual met? Yes Comments

Part 3 - Reorganisation timetable and details

*3.1 +Record date

Monday May 23, 2016

3.2 Date of +security holder meeting

Wednesday May 18, 2016

3.3 Last day for trading in the pre-re-organised +securities

Thursday May 19, 2016

*3.4 Effective date. Trading in the re-organised securities commences on a +deferred settlement basis. If the +entity's securities are suspended from trading during this period there will be no +deferred settlement trading however ASX still captures this date.

Friday May 20, 2016

3.5 Record date

Monday May 23, 2016

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3.6 First day for +entity to send notices to +security holders of the change in the number of +securities they hold. First day for +entity to register +securities on a post-reorganised basis

Tuesday May 24, 2016

• *3.7 +Issue date. +Deferred settlement market ends. Last day for +entity to send notices to +security holder of the change in the number of +securities they hold. Last day for +entity to register +securities on a post-reorganised basis Monday May 30, 2016

3.8 Trading starts on a normal T+2 basis

Tuesday May 31, 2016

3.9 First settlement of trades conducted on a +deferred settlement basis and on a normal T+2 basis

Thursday June 2, 2016

Part 4 - Reorganisation type and details

*4.1 The reorganisation is

+Security consolidation

*4.1a Consolidation ratio: the +securities will be consolidated on the basis that every

10

(pre-consolidation) +securities will be consolidated into

1

(post-consolidation) +security (/ies).

*4.2 Scrip fraction rounding

Fractions rounded up to the next whole number

Part 5 - +Securities on issue before and after reorganisation

*5.1 +Securities on issue before and after the reorganisation

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----- Start of picture text ----- *ASX +Security Code *ASX +SecurityPYM DescriptionORDINARY FULLYPAIDQuoted/unquoted Number on issue Number on issue after Estimate/ActualQuoted before reorganisation reorganisation Actual1,007,380,397 100,738,214*ASX +Security Code *ASX +SecurityPYMO DescriptionOPTION EXPIRING23-JUL-2016Quoted/unquoted Number on issue Number on issue after Estimate/ActualQuoted before reorganisation reorganisation Actual481,025,026 48,102,546----- End of picture text -----

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----- Start of picture text ----- *ASX +Security Code *ASX +SecurityPYMAA DescriptionOPTION EXPIRING23-JUL-2016 EX 2CQuoted/unquoted Number on issue Number on issue after Estimate/ActualUnquoted before reorganisation reorganisation Actual13,610,706 1,361,0715.2 *Exercise price of options*ASX +Security Code *ASX +Security DescriptionPYMO OPTION EXPIRING23-JUL-2016Quoted/unquoted Exercise price before Exercise price afterQuoted reorganisation reorganisation0.02000000 0.20000000*ASX +Security Code *ASX +Security DescriptionPYMAA OPTION EXPIRING23-JUL-2016 EX 2CQuoted/unquoted Exercise price before Exercise price afterUnquoted reorganisation reorganisation0.02000000 0.20000000----- End of picture text -----

Part 6 - Further information

6.1 Further information relating to the reorganisation

6.2 Additional information for inclusion in the Announcement Summary

Notification of Consolidation/Split

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