Pilot Energy Limited ABN 86 115229 984 Level 12, 225 George Street Sydney, NSW 2000 T: +61 8 9480 0470 F: +61 9321 0320

Announcement to ASX 5 March 2021

MARKET UPDATE

Pilot Energy Ltd (PGY) provides a market update delivered by Brad Lingo, PGY Chairman to the Sydney Mining Club last night on 4 March 2021.

The presentation provides updates to the information provided at the December 2020 EGM.

This announcement has been authorised by the Board of Directors of the Company.

Enquiries

Sally McDow, Company Secretary, email: [email protected]

PILOT ENERGY LIMITED ASX:PGY

Sydney Mining Club Presentation

Uniquely Positioned to Begin the Transition

Sydney Mining Club Presentation – March 2021

Overview – Making the Transition

Leveraging existing business and assets in Tier-1 locations to transition from a pure oil & gas company into a World-class renewable energy developer

Investment Highlights

Tier 1 assets – Owner/Developer of Mid-West Integrated Renewable & Hydrogen Project and South-West Blue Hydrogen & CCS Project

Transformational growth opportunities – to leverage existing assets, location and infrastructure to deliver world-class renewable energy projects

Ideally located – for identified exploration opportunities, for World-class renewable resources, for established infrastructure and to meet growing renewable energy market demand in WA

Multiple commercialisation options – supported by existing infrastructure, local industry and Government energy policies

5

Established infrastructure in the Mid-West region – supports existing production from Cliff Head Oil Field and potential generation of renewable energy through low-capex tie-ins

Well credentialled, experienced and proven management team – with track records of delivering energy projects

Pilot at a Glance

ASX Code:	PGY
Capital Structure
•Issued shares (4 March 2021)	218.5 million
1•Market Capitalisation (4 March 2021)	$17.9 million
•Cash on hand (31 December 2020)$1.55 million
Reserves & Resources
Proved & Probable Reserves2•	-
2C Contingent Resources2•	~1,000,000 BOE
Renewable Projects (Underdevelopment)
•Wind/Solar Power (MW) -	1,300+
•Hydrogen (kg/day)	Up to 250,000
•CCS/CCUS (tonnes per annum)	Up to 2 million
Share price

Trading PGY shares on the ASX is currently suspended pending conferring with the impact of a potential acquisition may have on the Mid West Feasibility Study Condition – see ASX Announcement 1 March 2021. PGY's share price at time of suspension was $0.082/share after reaching a 52-week high of $0.092/share 2. Approximately 300,000boe associated with the Cliff Head project remains under review and may be reclassified as reserves subject to the finalisation of new oil sales agreement to replace existing BP Kwinana arrangements

Proven, Experienced Board and Management Team

Executive Chairman and Director Managing Director Non Executive Director Non Executive Director

30+ years international senior executive experience

Upstream/midstream energy, energy infrastructure, finance

Proven track record of creating & growing shareholder value

Extensive oil & gas experience including corporate finance and M&A 25+ years Proven record in oil & gas with shareholder backing through multiple ventures

17+ years of international business, project management and leadership experience in large scale transport and logistics

Corporate advisor to private Australian oil & gas companies since 2018

Brad Lingo Tony Strasser1 Daniel Chen Bruce Gordon1

Corporate Finance and Corporate Audit Specialist in the Natural Resources Sector Over 25 years acting for, and advising, ASX and International oil and gas companies.

Extensive public company accounting, financial reporting and corporate governance knowledge

Following completion of the Royal acquisition, Tony Strasser is to be appointed Managing Director and Bruce Gordon is to be appointed non executive Director. Michael Lonergan will retire from the Pilot Board prior to completion of the acquisition

Strategy and Opportunity

The energy transition is accelerating - recent events

WA Government Oakajee Strategic Industrial Area renewable hydrogen call for expressions of interest
- Seeking 1.3 GW of wind & solar in the Mid West WA for green hydrogen production 24,500 tpa
APA Pathfinder Program
- Targeting clean molecules hydrogen production, storage, transmission & use
- Parmelia Gas Pipeline transformation to 100% hydrogen ready
Fortescue green hydrogen
- FMG-Kawasaki Heavy Industries MOU global liquid hydrogen consortium to develop Australia-Japan supply chain
- Development study for Bell Bay, Tasmania green ammonia plant
Commonwealth Government announcement of Carbon Capture Use and Storage Development Fund
- Grants of up to $25 million for pilot projects or pre-commercial projects aimed at reducing emissions
- Submissions due 29 March 2021
- www.business.gov.au/grants-and-programs/carbon-capture-use-and-storage-development-fund

The Case for Renewables

Technology advances have dramatically reduced costs for solar & wind power in last decade below fossil fuel alternatives

Global weighted average levelized cost of electricity from utilityscale renewable power generation technologies, 2010 and 2019

* Note for CSP, the dashed bar in 2019 shows the weighted average value including projects in Israel Source: IRENA – "Renewable Power Generation Costs in 2019", June 2020 Report

Competitive power generation costs make investment in renewables highly attractive

Renewable power generation technologies are competing head-to-head with fossil fuel options without financial support

Increasingly undercutting fossil fuel options, in many cases by a substantial margin

Declining costs driven by improving technologies, higher capacity factors, scale economies, & competitive supply chains

56% of capacity additions for utility-scale renewable power in 2019 achieved lower electricity costs than cheapest new coal

Capital availability

The Case for Low Cost Hydrogen

https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2019/Sep/IRENA\_Hydrogen\_2019.pdf

A Clear Pathway to Low Cost Hydrogen

Mid-West Renewable & South-West Hydrogen Projects are uniquely positioned for both blue and green hydrogen

Low-cost industrial scale renewable energy – wind & solar

Existing readily accessible, established CCS/CCUS sites

Readily available natural gas feedstock for blue hydrogen

Existing Commonwealth regulatory framework allowing CCUS/CCS in offshore Commonwealth waters – Cliff Head

Existing South-West Hub CCS Project under-appraisal for sequestration of 800,000+ tpa of CO2 within PGY petroleum tenures1

Dynamic Modelling of CO2Sequestration in the Harvey Area. A report by ODIN Reservoir Consultants for DMIRS 2018/7

Source: Gasunie - "Indications of Hydrogen"

Mid-West Renewables & Hydrogen

Premium Renewable Energy Resource anchoring development of transformational renewable energy projects

Mid-West Region: World-class Wind & Solar Resources

Uniquely located in one of the world's best renewable energy jurisdictions

Global Offshore Wind Speeds Australia's Renewable Resources: Wind

Mid-West Renewable Resource Zone – All The Right Stuff

Premium Renewable Resource Precinct

Renewable resources – Coastal Mid-West is one of Australia's highest rated renewable energy resource regions for both wind & solar as assessed by Geoscience Australia

Government strategic focus – WA Government committed to developing the Mid-West major industrial area and renewable resource zone into a global renewable energy and hydrogen hub

Renewable energy demand – Mid-West renewables resources and hydrogen resource potential attracting interest of major International and local companies pursuing renewable energy projects

Established Infrastructure

Grid connected – Served by Western Power's South-West Integrated System 330 kV transmission lines

Pipeline connected – Access to DBNGP & Parmelia Gas Pipelines provide potential pathways to market for hydrogen

Ports, road & rail – Mid-West Region endowed with established infrastructure

Clear Hydrogen Development Pathway

Blue hydrogen – Combination of existing Perth Basin gas supplies, low cost renewable energy and existing suitable CCS/CCUS assets can support first-mover, lowest cost blue hydrogen supply chain

Green hydrogen – Abundant low cost renewable energy & abundant H2O in combination with blue hydrogen provides foundation for development of lowest cost green and blue/green hydrogen supply chain

Green iron & steel – Combine low cost blue/green hydrogen supply with World-class Mid-West magnetite iron production provides opportunity for globally costcompetitive green iron & steel

Multiple Commercialisation Pathways

Integrating the Mid-West: Renewables & Cliff Head

Cliff Head Oil Field/Infrastructure provides unique position

• The only offshore oil and gas infrastructure along the Mid-West Region coast

WA-481-P provides significant opportunity accessible from Cliff Head

• Permit contains multiple identified exploration targets surrounding existing Cliff Head infrastructure

Mid-West Region coast has multiple sites for offshore wind development

• Cliff Head facilities provide potential anchor point for Mid-West WSP

Opportunity to simplify/streamline feasibility/development of Mid-West WSP

• Maximize use of existing infrastructure, easements, tenures, operations, studies & data

Combining offshore wind & existing operations creates potential new value

Potential to share costs and defer existing infrastructure abandonment liabilities
Reduced costs potentially result in a lower economic threshold for continued operations

South-West Blue Hydrogen Project

Focussed on delivering blue hydrogen combining advanced carbon capture with premium renewable energy resource

South-West Blue Hydrogen & CCS

Focus on development of blue hydrogen production project

• Hydrogen produced using natural gas using low-cost conventional SMR/ATR technology with full CCS

"Blue" hydrogen has compelling cost/economic advantage

• Platts Analytics estimates blue hydrogen can be produced at a cost of US$1.40/kg with full CCS versus "green" hydrogen production cost of US$4.42/kg*

Pilot existing asset foot-print provides platform for CCS

• EPs 416/480 cover the WA Govt sponsored SW Hub Carbon Capture & Storage (CCS) Project

SW Western Australia footprint provides ready access to infrastructure and markets

• Pilot's existing assets have ready access to gas, power, water, CCS and target hydrogen end market

Existing date & knowledge base streamlining development

• Commonwealth and WA Government work on SW Hub CCS Project provides substantial data/knowledge base for dedicated blue hydrogen CCS site creating opportunity to streamline/accelerate project feasibility & approvals

Feasibility to partnering

• Once feasibility studies are completed, focus on securing large development partner

Large range of potential partners

• BP, Santos, Woodside – all pursuing blue hydrogen

*S&P Global Platts Article – Cost, logistics offer "blue hydrogen" market advantage over "green" alternative, 19 March 2020 https://www.spglobal.com/platts/en/market-insights/latest-news/electric-power/031920-cost-logistics-offer-blue-hydrogen-market-advantagesover-green-alternative

Source: https://blog.ballard.com/green-hydrogen-sources

Integrated Renewables Development Strategy

Focus on large scale wind & solar leveraging existing assets and facilities – Cliff Head, Arrowsmith & SW tenures

Utilizing ExistingAsset Footprint	Leverage Existing Data& Knowledge Base	Feasibility toPermitting	Permitting toPartnering	Large Range ofPotential Partners
Progress projectfeasibility works/studies to provide aproject for partnering	Foundation fordedicated studiesserving dual purposefor upstream &renewables tostreamline projectfeasibility & approvals	Once preliminaryfeasibility establishedpursue permitting &regulatory approvals inparallel with fullfeasibility	Once feasibility studiesare completed andregulatory approvalprocess advancedfocus on securinglarge developmentpartner	CIP, China ResourceFund, Equinor,Siemens, GE, BPLightsource, Eni –all of which arepursuing renewables –offshore wind or solar

Key Milestones

	CY2020	CY2021	CY2022	CY2023
Corporate	•May–New strategyannounced•September–Transactionsdeliver and enhancefoundation assets•September–Securecorporate funding throughequity capital raising	•Develop partnering strategyfor Mid-West WSP•Formulate overall corporateand project funding strategy& plan	•Implement corporate andproject funding strategy•Implement Mid-West WSPpartnering strategyRaise corporate and project•equity finance includingfunding for Mid-West WSP
Mid-WestIntegratedRenewables&South-WestBlue Hydrogen& CCS	•July -Complete prefeasibility•September–Commenceproject feasibility studies•December –Engagefeasibility specialist energytransition renewables projectadvisors	•Complete project feasibilitystudies•Commence projectdevelopment &environmental approvalsCommence project FEED &•energy marketing	•Complete projectdevelopment &environmental approvals•Complete project FEED &energy marketing	•Potential FID on initial phase ofMid-West WSP development
Cliff Head +WA 481 -P	•April Cliff Head renewalproject completed•October–CH6/7 Productionworkover	•Maintain production•Detailed well planning forCliff Head Renewal Project (3wells)•Oil sale•WA 481 -P free carry workprogram	•Possible drilling campaign forCliff Head Renewal Project•Oil sales•WA 481 -P free carry workprogram	•Oil sales•WA 481 -P free carry workprogram

Summary

Leveraging existing assets and experience to move from pure oil & gas explorer into an energy transition company developing oil & gas production and World-class renewable energy projects

Material holdings in both Mid-West & South-West Regions of Western Australia, recognised as World-class wind and solar resources – existing assets located in the heart of the Mid-West Renewable Resource Zone

Ownership in key energy licenses & infrastructure – secured ownership in key oil & gas tenures and infrastructure through Royal Energy & Key Petroleum acquisitions

Potential World-class renewable energy projects – strategy to leverage existing oil & gas infrastructure and tenures with World-class renewable wind and solar resources to deliver offshore wind and onshore wind and solar project for domestic and export green energy, hydrogen and mineral beneficiation

Proven, experienced Team – Board and Management have strong track records of building and delivering energy and resource projects

Well capitalised to start the transition – Pilot well funded to pursue feasibility World-class offshore wind and onshore wind and solar projects supplying the Mid-West and South –West Regions with underlying sustaining cashflow from the Royal Energy acquisition

Compliance Statements

Disclaimer

This investor presentation has been prepared by Pilot Energy Limited ABN 86 115 229 984 (Pilot or the Company). Any material used in this presentation is only an overview and summary of certain data selected by the management of Pilot. The presentation does not purport to contain all the information that a prospective investor may require in evaluating a possible investment in Pilot nor does it contain all the information which would be required in a disclosure document prepared in accordance with the requirements of the Corporations Act and should not be used in isolation as a basis to invest in Pilot. Recipients of this presentation must make their own independent investigations, consideration and evaluation of Pilot. Pilot recommends that potential investors consult their professional advisor/s as an investment in Pilot is considered to be speculative in nature.

This presentation contains "forward looking statements" concerning the financial condition, results of operations and business of Pilot. All statements other than statements of fact or aspirational statements, are or may be deemed to be "forward looking statements". Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as "may", "will", "expect", "intend", "plan", "estimate", "anticipate", "continue", "outlook", and "guidance", or other similar words & may include, without limitation, statements regarding plans, strategies and objectives of management, future or anticipated production or construction commencement dates and expected costs, resources or reserves, exploration results or production outputs.

Assumptions

Forward looking statements are statements of future expectations that are based on management's current expectations and assumptions, known and unknown risks and uncertainties that could cause the actual results, performance or events to differ materially from those expressed or implied in these statements. These risks include, but are not limited to price fluctuations, actual demand, currency fluctuations, drilling and production results, commercialisation reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates.

Statements in this presentation are made only as of the date of this presentation unless otherwise stated & the information in this presentation remains subject to change without notice. Reliance should not be placed on information or opinions contained in this presentation. To the maximum extent permitted by law, Pilot disclaims any responsibility to inform any recipient of this presentation on any matter that subsequently comes to its notice which may affect any of the information contained in this document and presentation and undertakes no obligation to provide any additional or updated information whether as a result of new information, future events or results or otherwise.

No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in or derived from this presentation or any omission from this presentation or of any other written or oral information or opinions provided now or in the future to any person. To the maximum extent permitted by law, neither Pilot nor, any affiliates, related bodies corporate and their respective officers, directors, employees, advisors and agents (Relevant Parties), nor any other person, accepts any liability as to or in relation to the accuracy or completeness of the information, statements, opinions or matters (express or implied) arising out of, contained in or derived from this presentation or any omission from this presentation or of any other written or oral information or opinions provided now or in the future to any person

Competent Persons Statement

This presentation contains information on conventional petroleum reserves and resources which is based on and fairly represents information and supporting documentation (including Reserves and Contingent Resources as of 30 June 2020 reported in Triangle public disclosures (ASX: TEG) as operator of Cliff Head. Prospective resources relate to undiscovered accumulations requiring further exploration, appraisal and evaluation) reviewed by Dr Xingjin Wang, a Petroleum Engineer with over 30 years' experience and a Master in petroleum engineering from the University of New South Wales and a PhD in applied Geology from the University of New South Wales. Dr Wang is an active member of the SPE and PESA and is qualified in accordance with ASX listing rule 5.1. He is a former Director of Pilot Energy Ltd and has consented to the inclusion of this information in the form and context to which it appears.Authorisation

This presentation and announcement has been authorized by the Board of Directors of Pilot Energy Limited.

MW WSP Feasibility Study Reporting Conditions

Pilot has agreed the following conditions with the ASX in relation to the MW WSP feasibility study:

1. The Company must continue to spend funds on its existing and proposed oil and gas projects.
1. The Company must disclose in each quarterly activities report until September 2022, the proportion of expenditure incurred in relation to exploration and evaluation on the oil and gas projects and the Mid-West Wind and Solar Project.
1. The Company must disclose as separate line items in each quarterly activities report until September 2022, expenditure incurred in relation to exploration and evaluation on the oil and gas projects and the Mid-West Wind and Solar Project.
1. Proceeding beyond the feasibility study stage of the Project (or incurring expenditure in excess of the budgeted feasibility expenditure in relation to the Project) constitutes a change in the nature and scale of the Company's activities in terms of Listing Rule 11.1 and as such the Company will be required to comply with all of the requirements of Chapters 1 and 2 of the Listing Rules before it proceeds beyond the feasibility study or incurs expenditures in excess of the budgeted feasibility expenditure on the Project.