TRIANGLE ENERGY (GLOBAL) LIMITED — Interim / Quarterly Report 2015

Oct 29, 2015

QUARTERLY REPORT

For the period ended 30 September 2015

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COMPANY UPDATE

INDONESIAN OPERATIONS

During the quarter, Triangle Energy (Global) Limited (“ Triangle ” or “ the Company ”) announced that it had entered into an agreement for the sale of the shares held by the Company in Triangle Energy Limited (“ TEL ”) to Indonesian based company PT Enso Asia (“ PTEA ”).

TEL is a 100% owned subsidiary of Triangle and holds 100% of the shares in Triangle Pase Inc. (“ TPI ”), the operator of the Pase Production Sharing Contract (“ PSC ”).

The Agreement has provided Triangle with working capital and has allowed the Company to continue as a going concern in order to complete the disposal of its main undertaking and to complete the PSC requirements in relation to the extension of the Pase PSC.

The financial terms of the sale are:

• a) Cash consideration of up to US$2.5 million (comprised of consideration payable directly to the Company and payments by PTEA to meet working capital commitments of the Company and its subsidiaries); and,

• b) Cost recovery up to a maximum of US$5.0 million - Triangle will receive a proportion of future recovery of past sunk costs in respect to Pase A and B fields future production as it occurs.

• c) A US$1.5 million Performance Bond to SKK Migas (this was provided by PTEA on 29 July 2015) and, at the completion of the sale, a US$1.5 million Signature Bonus, to be paid by PTEA to the Directorate General of Oil and Gas (Indonesia). The Signature Bonus will complete the signing requirements of the PSC.

On 29 September 2015, following discussions with ASX and PTEA, Triangle announced the break fee was reduced from US$5,000,000 to 1% of the equity value of the Triangle Group and other consequential changes, including a new condition that if the Sale does not complete before the Long Stop Date, or the Agreement is terminated, all consideration provided by PTEA will become immediately due and payable as a loan which is secured by a fixed, floating and first raking charge over the Company Group and their assets.

A General Meeting of Shareholders is being held on 6 November 2015 to obtain approval for the sale by the Company of its shares in TEL to PTEA. Further details are available in the Notice of Meeting lodged which was lodged with the ASX on 8 October 2015.

The Board of Triangle investigated several opportunities to enable the Company to continue to operate and develop the Pase PSC, however to date none have come to fruition. The sale represents the best available opportunity for the Company to realise value for its interests in the PSC following a challenging period of delays to approvals, financing arrangements, and difficult financial and oil and gas markets.

Following the completion of the sale, Triangle will be in a sufficiently strong financial position to invest in suitable assets in order to secure the Company’s future growth.

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QUEENSLAND OPERATIONS

Reids Dome (Petroleum Lease 231)

PL231 is currently 40% owned by Senex Energy Ltd (“ Senex ”), 40% owned by Dome Petroleum Resources Plc and 20% owned by Triangle. Senex is the operator of the project under the terms of the joint venture agreement between the parties.

As previously announced by Triangle, the Company has entered into an agreement to acquire the interest in the project held by Senex and conduct of operations of the joint venture. The Company is waiting on final approval for the transaction from the Queensland Department of Natural Resources and Mines. Completion of the transaction will increase the Company’s interests in the project to 60%.

CORPORATE & FINANCIAL

Cashflow

At the end of September 2015, the Company had cash at bank of $361,242.

The Agreement entered into with PTEA has provided Triangle with working capital totalling AU$1.166M to 30 September 2015 (AU$972 during the quarter).

Cash outflows for the period were unusually high due to the payment of expenses that had accrued to 30 June 2015. Details of those payables are available in note 12 of the 2015 Annual Report.

Changes in Capital

There have been no changes in capital.

As at 30 September 2015 the Company had 1,080 shareholders and 3,194,962,382 ordinary fully paid shares on issue with the top 20 shareholders holding 62.2% of the total issued capital.

INFORMATION IN RELATION TO ASX LISTING RULE 5.4.3

Triangle holds a 20% beneficial interest in PL231 located in Queensland, Australia. The Group has not acquired or disposed of any other tenements during the June 2015 quarter.

About Triangle Energy:

Triangle Energy is a gas production and exploration company based in Perth. The Company operates the Pase Production Sharing Contract located in Aceh Province, North Sumatra, Indonesia. Triangle Energy continues to assess acquisition prospects to diversify and grow the portfolio of assets.

For Further information, please contact: Robert Towner | +61 414 594 868 Darren Bromley | +61 419 940 587 admin@triangleenergy.com.au | www.triangleenergy.com.au |

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013

Name of entity

TRIANGLE ENERGY (GLOBAL) LIMITED

ABN

52 110 411 428

Quarter ended (“current quarter”)

30 September 2015

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows	Current quarter $A’000	Year to date (3 months) $A’000
	- (122) (156) (103) (498) - - - - -	- (122) (156) (103) (498) - - - - -
	(879)	(879)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- - - - - - - - -	- - - - - - - - -
	-	-
	(879)	(879)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(879)	(879)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) • Funds received on deposit for sale of business Net financing cash flows	- - - - - - 972	- - - - - - 972
	972	972
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter	93 238 30	93 238 30
	361	361

Payments to directors of the entity, associates of the directors, related entities of the entity and associates of the related entities

1.23 1.24	1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
			(147)
			-
1.25 Explanation necessaryfor an understandingof the transactions Included at 1.23 are: • Directors fees of $13k • Payments made for professional services pursuant to consultancy agreements totalling $134k Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows N/A 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest N/A		Explanation necessaryfor an understandingof the transactions
		Included at 1.23 are: • Directors fees of $13k • Payments made for professional services pursuant to consultancy agreements totalling $134k
	N/A
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest
	N/A

• See chapter 19 for defined terms.

Appendix 5B Page 2

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

	3.1 Loan facilities • UD$800k Loan from PT Enso Asia relating to disposal of main undertaking 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
		-	805
		-	-

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	(35)
	(35)
	(45)
	(240)
Total	(355)

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	361	106
	-	132
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	361	238

Changes in interests in mining tenements and petroleum tenements

6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements and petroleum tenements acquired or increased	Tenement reference and location	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference+securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs,redemptions	-	-	-	-
	-	-	-	-
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	3,194,962,382	3,194,962,382	N/A	N/A
	-	-	N/A	N/A
7.5 +Convertible debt securities(description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	-	-	-	-
	-	-	-	-
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	54,500,000	-	Unlisted Share Rights under TEG Employee Rights Plan with Performance Vesting Criteria	Nil
	-	-	-	-
	-	-	-	-
	-	-	-	-
7.11 Debentures (totals only)
7.12 Unsecured notes (totals only)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).

• 2 This statement does give a true and fair view of the matters disclosed.

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Sign here: ............................................................ Date: 30 October 2015 (Director/Company secretary)

Print name: Darren Bromley

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements and petroleum tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement or petroleum tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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• See chapter 19 for defined terms.

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