#1Melbana Energy Cuba Block 9 World Class Exploration Acreage APPEX Conference, London February 28, 2018#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. 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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#3Company Overview Company Data Index ASX Ticker ASX:MAY Shares on issue ~1.666m Options/ SPRS S&P/ASX All Ordinaries ~210m/~5.3m Market Cap ~$27m (12 Feb) Cash (31/12/17) -$6.4m Debt Nil Enterprise Value ~$20m Shareholders Cadence Asset management 7.2% Board & Management 5.6% Top 20 shareholders 30% 3 0 Feb 17 Mar 17- 1 Cents Apr 17 2 May 17 Jun 17 Board and Management CEO 3 12 month share price performance Jul 17 Aug 17- Sep 17- Oct 17 Robert Zammit Chief Executive Officer Board of Directors Andrew Purcell Non-Executive Chairman 测 Colin Naylor CFO & Company Secretary Michael Sandy Non-Executive Director Errol Johnstone Chief Geoscientist Dean Johnstone Senior Geoscientist Peter Stickland Non-Executive Director Dr. Rafael Tenreyro Cuba Representative Nov 17- Dec 17- Jan 18- 70 Volume Share price 60 10 20 30 40 吕 Millions 50#4Melbana Project Summary USA Cuba Block 9 Cuba (Block 9 100%) • • Prolific and extensive hydrocarbon system in need of modern exploration techniques and investment Exploration potential of ~12.5 billion barrels of oil-in-place with recoverable Prospective Resources of 637 million barrels# Proven oil trend, ~30km from giant 11 billion barrel oil-in-place Varadero field Multiple targets identified - High graded Alameda-1 prospect potential for over 2.5 billion barrels oil-in-place and 130 million barrels recoverable # Targeting drilling up to 2 wells in 2H 2018 New Zealand (30%) Tassie Shoal Projects AC/P50 & AC/P51. • High impact Pukatea-1 Primary target -WA-488-P (Beehive) PEP51153 • Secondary target successful, likely future oil producer Primary target Prospective Resource of 12.4 million boe # Australia (WA-488-P 100%) Beehive prospect located in WA-488-P is potentially the largest undrilled conventional target in Australia Total and Santos to fully fund 3D seismic survey Melbana retains 20% and fully carried through first well drilled in WA-488-P if Total and/or Santos exercise farm-in option 4 # 100%, unrisked, best estimate#5Cuba - Gulf of Mexico, an Oil Rich Region • • • • • Prospectivity and Market Gulf of Mexico - one of the world's great petroleum mega provinces Under-explored south-eastern margin of the Gulf of Mexico Limited application of modern exploration techniques due to 50+ year US embargo Currently producing ~45,000 barrels of oil and 3 million cubic metres of gas per day Infrastructure in place Strong focus on increasing domestic production Few western companies operating in oil industry TSX-listed Sherritt producing oil adjacent to Block 9 ~14,000 barrels oil and ~3MCM gas per day at low operating cost of US$8/bbl in Q3 2017* Cuba Significant Undiscovered Potential Gulf of Mexico North Cube Platform Margin Carbonate AU 130 Km Escarpment SHELF North Cuba Foreland Basin AU FLORIDA CUBA Atlantic Ocean BAHAMA PLATFORM YUCATAN PLATFORM North Cuba Fold and Thrust Bet 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" Oil Terminal Modern drilling rig in Cuba 5 *Sherritt International Corporation Third Quarter 2017 Report#6Boca de Canasi- Pacuranao Jaruco Yumuri- P. Escondidoporuce Varadero • Cuba Block 9 - An Overview Multi-billion barrel conventional oil potential Significant onshore footprint - 2,380km² • Lightly explored • Northern fold belt, along trend from Varadero oil field (>11 billion barrels oil-in- place) Natural oil seeps and has several small discoveries 19 individual leads/prospects identified La Habana (Havana) Cuba Cardena Matanzas Majaguillar San Anton Angelina Mart Structural Trends Motembo Block 9 50 kilometers • Potential for Varadero type structures • 25 year PSC term (awarded in 2015) Block 9 Exploration Potential • 8.5 year exploration period • • 59 Low Best High Mean MMstb MMstb MMstb | MMstb 1,181 12,746 44,151 18,518 637 2,208 926 • Targeting drilling two wells in 2H 2018 Preparations for drilling proceeding according to schedule. Farmout process commenced, physical dataroom open Oil-in-Place (unrisked, 100%) Prospective Resources (recoverable, unrisked, 100%) 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. 6#7Cuba Block 9 – 19 Leads in Conventional Play - Priority drill targets identified - Alameda, Zapato and Piedra Block 10 (Sherritt 100%) drilling exploration well Varadero Field is the largest oil field in Cuba with over 11 billion barrels of oil in place (10.5-14.3* API) ģ. Varadero จ Cupey Majaguillar Cantel Block 10 о San Anton 32 Havana Guadal 1 Cuba Piedra Marti-5 (1988) recovered oil (24° API) from Lower Sheet at an unspecified rate Well-oil shows Well-Strong oil shows Oil Field Oil and Gas Field Exploration Prospects Exploration Leads Block 9 Marti 561 Alameda Boring 10 Motembo Motembo Field (1881) has intermittent production of light oil (50-64.5° API) 7 Zapato kilometers 50#8• • Alameda Prospect Multi-target exploration drilling close to historic oil recoveries Three targets for Alameda-1, two up dip of known oil recoveries Marti-5 (1988) recovered oil (24 API) with oil shows over an 850 metre gross interval from Alameda objective 32% chance of success at Alameda Combined exploration potential of over 2.5 billion barrels oil-in-place and 130 million barrels of recoverable oil# Primary objective in depth range from 3,000 to 3,700 metres Proposed Marti-2 (projected) Alameda-1 Marti-5 pentinites Cret Est Vega Alta Amistad Upper Sheet Carbonates Vega Alta Oil recovered from tests Structure Placetas- Carbonates Alameda • Benign, accessible surface location • Alameda potential drilling 2H 2018 Proposed Alameda- 1 Surface Location 500m Placetas-2 Carbonates Crettst Tertiary 44bbl of 24° API oil recovered from test Alameda Recoverable Prospective Resources (100%, MMstb) Objective COS* Low Best High Mean Amistad 17% 2 25 93 38 N 22% 4 41 129 56 Alameda 32% 3 65 214 91 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 # 100%, unrisked, best estimate 8#9Zapato Prospect Large structure with hundred million barrel potential • Zapato Prospect is a large robust structure targeting fractured carbonate objective • Defined on multiple seismic lines • • • • Adjacent to shallower Motembo oil field which produced high quality light crude (50 - 64.5° API) Demonstrated working oil system Target zone is deep sheet carbonates Crest of structure at approximately 2,000 metres with nearly 1,000 metres vertical relief Itabo well didn't drill deep enough to intersect objective Benign, accessible surface location 500m Proposed Zapato-1 Surface Location 61.0 82.0 1210 SP 1021.0 1031 0 141.0 10710 130.0 1091.0 200.0 1101 0 Proposed Zapato-1 Itabo-1 401.3 12010 460.0 1231 C 480.0 12510 1261.0 -400- -1000- -1200- Productive unit at Motembo (approx. 10km South East) Ophiolite Vega Alta 1400- -1600- -1800- Placetas Carbonates Potential Deeper -2000 Placetas Carbonates Zapato Late Cretaceous Limestone Ophiolitic Conglomerate Zapato Recoverable Prospective Resource (100%, MMstb) Zapato COS* Low Best High Mean 25% 5 71 297 118 9 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#10Empty#11• • • • • Preparations for drilling in 2018 Securing people, permits, equipment and services Field work and topographic survey completed for Alameda-1 and Zapato-1 well sites, camp sites and access roads Benign surface conditions encountered at well site locations Appointed experienced drilling planning coordinator Initiated field work with experienced local Cuban contractors Civil engineering design for Alameda site completed; Zapato site nearing completion Stakeholder engagement for both sites proceeding Progressing permitting process, including drilling environmental approvals Microlocalisation Permit granted for Alameda, granting access to site Drilling rig international tender process in progress Initiated procurement process for major service contractors and long lead items Ubicación en superficie 1 propuesto para Zapato-1 11 GWDC#12Farm in opportunity Opportunity to farm in to world class onshore exploration acreage • Active farm-out process underway • Physical Data Room open in Melbourne, Australia • • • Video conference facilities available for pre and post physical dataroom visits Please visit Errol Johnstone (Chief Geoscientist) at our booth for more detail on our Cuba Block 9 Farm in enquiries can be addressed to Robert Zammit Chief Executive Officer [email protected] Ph +61 38625 6022 12#13Melbana Energy