QUARTERLY ACTIVITIES REPORT For the period ended 31 December 2018

1 HIGHLIGHTS

Solid oil and gas production for the quarter (533 BOE)
Steady cashflow - A$1.85m net sales receipts for Q4-18. (US$1.2m)
Receipt of executed BLM leases of 15,000 acres in the PRB, Wyoming
Geological and feasibility studies performed to prioritise drilling prospects in PRB
Onsite visits at potential well sites to begin designing well pads and environmental/ archaeology assessments on PRB leases

2 POWDER RIVER BASIN

Eon NRG Ltd’s (“Eon” or “the Company”) acquisition of 15,000 acres in the Powder River Basin (“PRB”) was finalized with executed leases received from the Bureau of Land Management (BLM). The leases were financed from existing cash reserves. Management has continued with its geological and economic assessment to identify several high value drilling opportunities. Onsite visits were performed to evaluate surface topography and well pad design of potential prospects. Environmental/archology contractors have initiated regional reviews and preliminary permitting for new wells.

Powder River Basin Wyoming in winter – proposed location on one of Eon NRG leases.

Eon NRG Limited (ASX: E2E)

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The potential drill prospects in the PRB will target oil from multiple formations including the Turner, Dakota and Minnelusa. The leases are surrounded by developed oilfields which have long lived production. The historic production rates from these fields along with improved drilling and completion technology indicate strong well economics for potential future wells within Eon’s leases.

The 15,000 acres in the PRB were purchased from the United States Department of Interior with a 10-year lease terms and a net revenue interest of 87.5% (12.5% royalty rate). There are no drilling commitments required to hold the leases. A further 640 acres were purchased from the Wyoming State Land Board in Converse County which has a 5-year lease term. Further land acquisition opportunities are being considered to expand the potential acreage position around the current holdings.

Some of the PRB Leases that were acquired are in Natrona County, close to the prolific Teapot Dome and Salt Creek Oil Fields. These oilfields have produced from the multiple formations over a long period of time and are still in production.

The contiguous nature of these southern leases will allow for broad scale development if prospective oil resources are identified. Detailed analysis of the potential of these particular leases has not yet started but will be part of the H2 2019 work program.

3 BORIE OILFIELD, DJ BASIN, WYOMING

Two workovers were carried out in Q3-18 at the Borie Field resulted in an increase in production in Q4. Production from the Borie field averaged 56 bopd which is in line with expectations. During the Q4, infrastructure improvements were implemented including the installation of gas pipes within the field to capture gas that can be used for winter heating rather than utilising propane that was previously sourced externally. These improvements will increase the field’s net return and add value to it’s reserves. Conversion of an existing shut-in well to a water injection well in 2019 is expected to increase production from the secondary recovery waterflood of the northern part of the field.