#1Melbana Energy Cuba Oil & Gas 2017 Summit Presentation February 2017 LIBRERIA ALMA MATER#2Disclaimer Forward-looking Statements and Resources Summary of information: This presentation contains general and background information about Melbana Energy's activities current as at the date of the presentation and should not be considered to be comprehensive or to comprise all the information that an investor should consider when making an investment decision. The information is provided in summary form, and should not be considered to be comprehensive or complete. Not financial product advice: This presentation is not financial product, investment advice or a recommendation to acquire securities and has been prepared without taking into account the objectives, financial situation or needs of individuals. 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In particular, this presentation does not constitute, and shall not be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of Melbana Energy. Future performance: This presentation contains certain forward-looking statements and opinion. The forward-looking statements, opinion and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements, including projections, forecasts and estimates, are provided as a general guide only and should not be relied on as an indication or guarantee of future performance and involve known and unknown risks, uncertainties and other factors, many of which are outside the control of Melbana Energy. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward looking statements or other forecast. Risks: An investment in Melbana Energy is subject to investment and other known and unknown risks, some of which are beyond the control of Melbana Energy. Not an offer: This presentation is not, and should not be considered as, an offer or an invitation to acquire securities in Melbana Energy or any other financial products and neither this document nor any of its contents will form the basis of any contract or commitment. This presentation is not a prospectus. Offers of securities in Melbana Energy will only be made in places in which, or to persons to whom it would be lawful to make such offers. This presentation must not be disclosed to any other party and does not carry any right of publication. Neither this presentation nor any of its contents may be reproduced or used for any other purpose without the prior written consent of Melbana Energy. No Distribution in the US: This presentation is not an offer of securities for sale in the United States. Any securities to be issued by Melbana Energy have not been and will not be registered under the US Securities Act of 1933, as amended (the "US Securities Act") and may not be offered or sold in the United States absent registration or an exemption from registration under the US Securities Act. No public offer of the securities is being made in the United States and the information contained herein does not constitute an offer of securities for sale in the United States. This presentation is not for distribution directly or indirectly in or into the United States or to US persons. Monetary values: Unless otherwise stated, all dollar values are in Australian dollars (A$). The information in this presentation remains subject to change without notice. No distribution: Distribution of this presentation may be restricted by law. Persons who come into possession of this presentation should seek advice on and observe any such restrictions. Any failure to comply with such restrictions may constitute a violation of applicable securities laws. Contingent and Prospective Resources: The information in this presentation that relates to Contingent Resources and Prospective Resources for Melbana Energy is based on, and fairly represents, information and supporting documentation compiled by Peter Stickland, the Managing Director and Chief Executive Officer of Melbana Energy. Mr Stickland B.Sc (Hons) has over 25 years of relevant experience, is a member of the European Association of Geoscientists & Engineers and the Petroleum and Exploration Society of Australia, and consents to the publication of the resource assessments contained herein. The Contingent Resource and Prospective Resource estimates are consistent with the definitions of hydrocarbon resources that appear in the Listing Rules. Conversion factors: 6 Bscf gas equals 1 MMboe; 1 bbl condensate equals 1 boe. 2#3Presentation Overview Overview of Melbana Energy Cuba oil & gas prospectivity and operating environment Exploration history of Block 9 Melbana process for Block 9 so far ✓ Identified prospectivity of Block 9 Next steps 3#4Corporate Overview 4#5Melbana Energy: Company Overview • Australian listed (ASX: MAY) petroleum. USA • • • • exploration company Only ASX listed company with Cuban energy industry exposure Identified enormous exploration potential in Cuba Block 9 Seeking early drilling opportunities in Block 9 Onshore New Zealand high impact drilling of the Pukatea prospect anticipated late 2017 Portfolio also includes high impact projects offshore in Australia, including Beehive prospect Disciplined strategy focused on: - Cuba Block 9 - High-impact, low cost activity from Australia/NZ portfolio Fiscal discipline across all activities Tassie Shoal Projects AC/P 50 & AC/P51 5 Cuba Block 9 WA-488-P PEP51153#6Senior Team • Experienced Leadership Board & Management Board of Directors Peter Stickland Managing Andrew Purcell Non-Executive Director & CEO Chairman Michael Sandy Non-Executive Director Colin Naylor CFO & Robert Zammit Exec Manager - Errol Johnstone Dean Dr. Rafael Company Secretary Commercial & Chief Johnstone Senior Tenreyro Cuba BD Geoscientist Geoscientist Representative Melbana staff experienced with Cuban-style geology 6#7Cuba 7#8• Cuba Oil and Gas Potential Untapped Region of the Gulf of Mexico The Gulf of Mexico is one of the world's great petroleum mega provinces - Cuba represents the under- explored south-eastern margin of this province US Geological Survey estimates undiscovered technically recoverable reserves of 4.6 billion barrels in North Cuba - Largest field - Varadero: >11 billion barrels OOIP Cuba currently producing ~45,000 barrels of oil and 3 million cubic metres of gas per day, but seeking to grow production - Imports 50% of oil Local market for oil and gas Limited application of modern exploration techniques due to 50+ year US embargo - Cuba Significant Undiscovered Potential Gulf of Mexico North Cuba Platform Margin Carbonate AU 150 Kilometers 150 Miles Fida Escarpment SHELF North Cuba Foreland Basin AU FLORIDA CUBA Atlantic Ocean BAHAMA PLATFORM YUCATAN PLATFORM North Cuba Fold and Thrust Belt AU Yucatan Basin Gulf of Mexico Cuba US Geological Survey (2004): "Total undiscovered technically recoverable reserves in North Cuba Basin of 4.6 billion barrels of crude oil, 9.8Tcf of natural gas and 900 million barrels of natural gas liquids" 8#9Oil and gas industry in Cuba Map of acreage holdings in Cuba UNITED STATES N01 11 E 100km 2460208 N02 NO 000187 F N04 NOS THE BAHAMAS N06 N07 N08 NOS N10 247 68 381 N11 N12 N13 N14 N15 IN16 N17 N18 N19" N20 N24 N21 N22 N23 N25 N26 N27 N28 N29 N37 N30 N31 N32 N33 N35 N36 N34 K 6A Havana b N42 N43 N44 N45 4 3 5 N49 N50 N51 5A 2 N53 N54 1 N58 N59 Vill 505 506 507 MEXICO S13 $14 Blocks Under Contract Sonangol (Angola) Blocks Under Negotiation 8 Dec 2010 4000 km2 Sherritt Block 6A $25 S26 PDVSA (Venezuela) Petrovietnam Blocks 13 and 21A 9A 9 12 8 11 X11 11A 13 IX 14 CUBA 21A 21 23 15 23A X22 16 VII 17 H G F E D VI 22 18 22 Oct 2007 8130 km2 S38 $39 Rosneft-Zarubezhneft Sherritt Blocks 8A and 10-1 $52 S53 1829 18 Varadero West, Varadero East, Puerto Escondido Yumuri Melbana Energy CUPET operated blocks B 20 X19 A 19 X20 BNAV 34° 42 45.5° 1832 34°480243° Zarubezhneft Retraf (production lic) Carasi, Seboruco, Santa Cruz Cayman Islands Established international oil industry participation Significant areas of Cuba is not yet leased International operators reporting globally competitive operating costs in Cuba of ~US$7/barrel. 9#10• Cuba - Re-emerging as an investment destination Policy changes having positive impact Cuba has implemented an attractive fiscal regime: - New Law of Foreign Investment in 2014, including 8 year profit tax exemption Cuba reached a deal with "Paris Club" creditor nations late 2015 - an important step to normalizing relations with international finance community Increasing foreign interest in Cuba including Australia, with former Trade Minister Andrew Robb leading first Australian business mission, including Melbana Energy, to Havana in early 2016 Wider and easier access to internet is a plus for doing business US airlines now have direct flights to Cuba Melbana Energy's Peter Stickland, with former Australian Trade Minister Andrew Robb and Cuban Foreign Trade Minister Rodrigo Malmierca Diaz (February 2016) 10#11Melbana Progress On Block 9 So Far PSC (2,380 km² or 588,000 acres) located onshore and close to infrastructure . Commenced pre-qualification in 2012 • • . Prequalified as Operator early 2013 Identified Block 9 as preferred opportunity Commenced direct negotiations with Cupet for Block 9 PSC September 2015 Melbana Energy • (100%*) awarded Block 9 PSC in for • 25 year term - Boca de Jaruco Bacuranao Canasi- P. Escondido Yumuri- Seboruco Varadero Majaguillar San Anton Cardenas Matanzas Angelina Structural Trends Marti Block 9 Motembo La Habana (Havana) Cuba 50 kilometers 8½ year Exploration Period divided into four sub-periods, with withdrawal options at the end of each sub-period Low first Exploration sub-period commitment consisting of studies and seismic reprocessing Mid 2016 opened Havana office and appointed experienced, high calibre in country representative to facilitate accelerated activity Substantial data aggregation and integration work undertaken to provide a block wide stratigraphic interpretation *Subject to Petro Australis conditional option to back in for 40%, no later than Sept 2017. See ASX announcement dated 3 Sept 2015 11#12Melbana Exploration philosophy: Integration is the key Sequence Stratigraphy Geology Outcrop Geochemistry Integrated Understanding of Reservoir Engineering Structural Geology Prospectivity Seismic and Potential Fields Geophysics Petrophysics Drilling Technology#13Brief Exploration History of Block 9 Lightly explored, natural oil seeps and several small oil discoveries Pre 1959: • Asphalt mined from surface deposits Motembo discovery - light oil, shallow, produced 5+ mmstb Numerous other shallow wells, many with oil shows/recoveries 1959-1991: • • Some early seismic acquisition Number of wells drilled with oil recoveries (some located pre- seismic) 1991-2006: • • First international PSC for Block 9 Shallow drilling, but results in two producing discoveries (now excised from Block 9) Varadero Field is the largest oil field in Cuba with over 11 billion barrels of oil in place (10.5-14.3 API) Varadero Majaguillar & San Anton producing fields discovered in Block 9 Cantel Majaguillar San Anton Cardenas IIW Loma Triana Bolanos-1 (1991) recorded a recovery of 22 API oil. →Guadal 1 Rio La Palma -Marti 5 Bolanos 1 Marti-5 (1988) flowed light oil (24 API) at unspecified rate Marti 2 San Felipe Santa Gertrudis ▲ Angelita A Surface Geology Structural Trend Oil Seep Natural Tar Pit Well-Oil shows Well - Strong oil shows Oil Field Oil and Gas Field Block 9 Motembo Field (1881) has intermittent production of light oil (50-64.5 API) Havana Cuba Guadal-1 (1971) recorded recoveries of oil and gas ----- ace Geology Trends on Structural High -- 50 kilometers 33 13#14Block 9: Geological Characteristics Multiple plays in large compressional fold belt Lower Sheet Reservoir - - Predominantly of fine grained, fractured carbonates Targeting same main productive zone in existing fields in Cuba - Varadero wells have initial rates up to 3000 barrels/day per well Structure - - Large scale, broad thrusted anticlines - Definable on current coarse 2D seismic data grid Upper Sheet • • • Numerous smaller scale structures B1 Depth B m Itabo- Bolanos Guadal-1 0- Tertiary 1000 UPPER SHEET Mid-level Detachment 2000 3000 LOWER SHEET 4000 However, prospects hard to define on coarse 2D seismic data grid Multiple oil recoveries to date Tertiary Younger carbonate and clastic reservoirs • Only mild structural deformation Heavy oils - may require enhanced recovery methods 14#15Cuba Block 9 – Exploration Resource Potential Multi-billion barrel oil in place exploration potential identified Lower Sheet Play • • Exploration potential for over 12 billion barrels of oil-in-place with Prospective Resources of ~600 million barrels (unrisked Best Estimate, 100% basis)* 18 individual leads identified in conventional "Lower Sheet Play" Depths between 2,000 and 3,500 metres High potential Alameda prospect identified close to historical oil recoveries Recoverable volumes conservatively estimated using the historical 5% recovery factor for nearby Cuban fields Potential for higher quality light crude oil suggested by historical oil recoveries Varadero Field is the largest oil field in Cuba with over 11 billion barrels of oil in place (10.5-14.3° API) Varadero Bolanos-1 (1991) recorded a recovery of 22° API oil from Upper Sheet 200 8. จ Cupey Majaguillar Cantel San Anton CA1 E Bolanos Quadal 1 YA2 Alamed Narti 5 G2 C1 G1 Cardenas Marti-5 (1988) recovered oil (24° API) from Lower Sheet et at unspecified rate Surface Geology Structural Trend Well-Oil shows Well-Strong oil shows Oil Field Oil and Gas Field Lower Sheet Play-Leads Motembo Havana Cuba Guadal-1 (1971) recorded recoveries of oil and gas from Upper Sheet B ---- Structural High Trends on Surface Geology --> Block 9 Motembo Field (1881) has intermittent production of light oil (50-64.5° API) 0 kilometers 50 *See Prospective Resources Cautionary Statement on page 16 15#16• • • Alameda prospect: close to historical oil recoveries High impact prospect, currently designing well for potential 2018 drilling Large structure in western part of Block 9 Primary objective in depth range from 3,000 to 3,700 metres Marti-5 (drilled 1988) recovered lighter oil (24° API) and had oil shows over a 850 metre gross Depth mA 0 1000 2000 Oil recovered from tests Mid-level Detachment Marti-2 Marti-5 A' Tertiary UPPER SHEET interval from the Lower Sheet N 3000 . Potential for shallow secondary objectives Alameda 4000 LOWER SHEET 44bbl of 24° API oil recovered from test Currently designing well to test Alameda with potential for drilling. early in 2018 5000 1km Prospective Resources (MMstb) Alameda Prospect COS* Low Best High Mean Oil in Place (100%) 32% 62 1,293 4,2781,829 Prospective Resource (100%) 3 65 214 91 Prospective Resource (NEI**) 2 44 144 61 Prospective Resources Cautionary Statement: The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Future exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons. *Chance of Success **Net Entitlement Interest based on Production Sharing Contract 16#17• Central Area: High Potential A2 and C1 Leads Multiple structures with hundred million barrel exploration potential A2 is a large structure supported by two nearby shallow wells that recovered oil from the upper sheet above the deeper A2 lower sheet target C1 lead is also a large structure Depth m B 0 Itabo-1 Bolanos-1 Guadal-1 Tertiary UPPER SHEET 1000- Mid-level Detachment 2000 C1 lead is only 13km from the 3000 historical Motembo oil fled which has produced very light oil. Assessing A2 and C1 leads for early drilling in Q1 2018 5000 Prospective Resource (100%, MMstb) C1 4000 LOWER SHEET Bolanos-1 (1991) recorded a recovery of 22° API oil from Upper Sheet COS* Low Best High A2 Lead 21% 9 69 213 Mean 93 C1 Lead 25% 5 71 297 118 *Chance of Success 17 A2 Lead Guadal-1 (1971) recorded recoveries of oil and gas from Upper Sheet 1km B' Prospective Resources Cautionary Statement: The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Future exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.#18. • • • • • • . Cuba Block-9 Operating Environment Onshore accessible area in close proximity to active oil industry Block 9 consists largely of low-lying farm land A number of sealed roads cross Block 9 Largest nearby city is Cardenas (population 100,000) approximately 5km west of Block 9 ~40km from international airport ~75km from deep water port with oil terminal ~160km east of Havana There are a number of modern land drilling rigs currently operating in Cuba Preliminary discussions held with drill rig owners and equipment providers Block-10 Sealed Roads Majaguillar • Cardenas Golden Hope-1 Legend ☐ Block-9 Outline Significant Wells Leads Discovered Fields Town Centre Low lying farmland San Anton La Manuy-1 Alameda N Marti-5 Modern drilling rig in Cuba Q3 A1 Q1 Corralillo-1 Menendez-1 Guadal-1 Bolanos-1 A2 G2 Itabo-1 C1 Puentes-1 61 Marti Habo Castillo-1 Motembo 5 Km Block-9 18#19Cuba Block 9 – Near Term Activities • • • Integrate data and investigate potential for early drilling in 2018 Continue to integrate data to provide a comprehensive picture of the geology of Block 9 Develop drilling program for possible accelerated drilling in Block 9 to test the exploration potential of the Lower Sheet Play Potential drilling in Q1 2018 • Investigate merits of additional seismic data acquisition Monitor drilling of high impact exploration well currently drilling in Block 10, operated by Sherritt, adjacent (and on trend) to Block 9. Varadero Field is the largest oil field in Cuba with over 11 billion barrels of oil in place (10.5-14.3° API) Varadero Cantel Bolanos-1 (1991) recorded a recovery of 22° API oil from Upper Sheet 8. จ Cupey Majaguillar Block 10 ° San Anton Alameda Marti-5 (1988) recovered oil (24° API) from Lower Sheet at an unspecified rate Surface Geology Structural Trend Well-Oil shows Well-Strong oil shows Oil Field Oil and Gas Field Lower Sheet Play-Leads A. Guadal 1 Bolancs Marti 5 G2 C1 Motembo Havana Cuba Guadal-1 (1971) recorded recoveries of oil and gas from Upper Sheet B ← Structural High Trends on ---- Sure- Ge→→ --->> Block 9 Motembo Field (1881) has intermittent production of light oil (50-64.5° API) 0 kilometers 50 *Subject to Petro Australis conditional option to back in for 40%, no later than Sept 2017. See ASX announcement dated 3 September 2015 19#20Melbana Energy - Indicative Activity Pipeline Key upcoming activities in Cuba, NZ and Australia CUBA BLOCK 9 PSC • • Priority lower sheet drill targets identified Ongoing assessment of Block 9 prospectivity Up to two wells to be drilled in early 2018 • Drill program planning underway NEW ZEALAND PEP51153 Pukatea-1 targeting drilling in Q3/Q4 2017 Drill program planning underway AUSTRALIA WA-488-P . Farmout process ongoing If farmout successful, potential drilling of Beehive in 2018 20 20#21Summary and Conclusions Melbana strategy to target projects with appropriate risk reward profile Building a portfolio of high impact drilling opportunities in Cuba and Australia/NZ Cuba has excellent oil & gas prospectivity and demonstrated modest operating costs Existing fields, oil recoveries and seeps demonstrate a high quality active petroleum system in Block 9 Melbana's technical assessment has demonstrated world class, large scale exploration potential of Block 9 High quality prospects support potential to accelerate drilling in Block 9 21#22Melbana Energy www.melbana.com