Investor Presentaiton

Armour Energy and controlled entities armourenergy.com.au Operating and financial review continued for the year ended 30 June 2020 KEY ACHIEVEMENTS CONTINUED COOPER BASIN On 15 June 2020, the Company entered into a definitive agreement to acquire all of Oilex Limited's Cooper Basin exploration tenements - PELS 112, 444 and PELA 677 and 27 PRLs in the South Australian Cooper-Eromanga Basins - covering over 5,200 km2 making the Company the operator of the 4th largest exploration acreage holder in the South Australian Cooper Basin after Santos Ltd, Beach Energy and Senex Energy. UGANDA Application for renewal of the block was submitted and approved providing a further 2-year exploration period in which it is planned that an oil well will be drilled subject to the outcome of the current 2D seismic program and funding. CORPORATE personal use only, The Government Gas Acceleration Program (GAP) was completed in October 2019 with Armour receiving a total of $6.1 million in funds. In September 2019, raised $4 million via private placement. Launched an underwritten equity capital raising for $8 million in June 2020, and due to strong investor demand the conditional placement was increased to $7 million, subject to required approvals, bringing the total raise to $15 million. The second full year of Operations at Kincora saw 91% (2019: 91%) operational time achieved. Despite being affected by COVID-19 the Kincora wells have been producing steadily and delivered an average of approximately 7.9 TJ/day (2019: 9 TJ/day) of sales gas plus associated liquids, with a peak sales gas production rate of approximately 8 TJ/day (2019: 12 TJ/day) during the year. Production rates Oil (BBL) (TJ) LPG (T) Condensate (BBL) FY2020 11,583.67 FY2019 Change 14,072.00 (17.7%) 2,601.76 3,267.00 (20.4%) 4,611.83 38,851.62 4,475.00 42,163.00 3.1% (7.9%) The Kincora Gas Plant has been fully operational for the year with 91% availability (2019: 91%). TJ Equivalent 350.0 300.0 250.0 200.0 150.0 100.0 50.0 Product Sales TJ Equivalent - FY 2020 Production TJ Equivalent - FY 2020 14.0 300.0 12.0 250.0 60.0 50.0 10.0 200.0 40.0 8.0 6.0 4.0 2.0 TJ Equivalent 150.0 100.0 30.0 20.0 50.0 10.0 In addition to the 7-7.5 TJ/day currently being produced from Armour's Kincora, Armour is also producing on average approximately 138 barrels (2019: 170 barrels) of oil and condensate per day, and approximately 13 tons (2019: 14 tons) per day of Liquid Petroleum Gas (LPG). Oil and condensate are sold ex-Kincora and transported to local Queensland refineries. LPG is also sold at the Kincora Gas Plant and on-sold mostly in Queensland, New South Wales, and South Australia, providing energy for transport, heating, and agricultural enterprises. Armour, like many other companies has been affected operationally and financially by COVID-19. Global and domestic oil prices have dropped on average by around 36% compared to last year. In keeping with both Governmental restrictions and an overall focus on the health and safety of Armour personnel and contractors, the ability to execute work programs has been challenging move equipment and labour while abiding to government regulations is challenging. Both of these COVID-19 related issues have had a material impact on Armour's 2020 work program. Measures were taken to directly address the impacts of reduced production resulting from the deferral of work programs in prior and current periods. These deferrals have resulted in the Company falling below its forecast production levels for FY20, however, with the commencement of a 6-well stimulation program which commenced in early September and other planned well production optimisation activities, Armour expects to improve production over the coming year. The first stage of the 6-well stimulation program - the Horseshoe-4, Horshoe-2 and Warroon-1 well stimulations - are expected to be completed and flowing increased sales gas volumes by mid-December 2020. Collectively this first 3-well program is expected to deliver initial increase in gas production of 3.5 to 4.0 TJ/day (30-day IP rates) with additional production optimisation works delivering another 0.75 to 1.5 TJ/day. As Armour delivers this program and plans its 2021 work program, Armour will continue execute on Phase 3 and Phase 4 of the growth strategy aiming to grow Surat Basin sales gas production to 20 TJ/day over the next 18 to 24 months. POTENTIAL TRANSACTIONS AND A FOCUS ON DEBT REDUCTION Additionally, Armour are actively progressing a number of additional asset transactions, which will enable the Company to both fund upcoming near-term production and development work programs, expanded exploration programs and further accelerate amortisation of Armour debt position. Specifically, the Company is focussed on securing a farmin joint venture partner for the Company's Northern Territory McArthur Basin Project area and realizing significant value through the restart and potential upgrade and expansion of the Newstead Gas Storage Project. Sales Gas TJs. LPG TJs Condensate TJs Oil TJs Wet Gas Avg TJs/day May Sales Gas TJs LPG TJs Condensate TJs Oil TJs Wet Gas Avg TJs/day In addition to the 7-7.5 TJ/day currently being produced from Armour's Kincora, Armour is also producing on average approximately 138 barrels (2019: 170 barrels) of oil and condensate per day, and approximately 13 tons (2019: 14 tons) per day of Liquid Petroleum Gas (LPG). Oil and condensate are sold ex-Kincora and transported to local Queensland refineries. LPG is also sold at the Kincora Gas Plant and on-sold mostly in Queensland, New South Wales, and South Australia, providing energy for transport, heating, and agricultural enterprises. The Company believes that through both of these initiatives that significant capital can be realised that can be directed to the reduction of the current outstanding long-term debt. The aim of these transactions is to deliver a significantly strengthened and unencumbered balance sheet providing the Company with maximum capital flexibility to invest in high return. High growth projects within the current project portfolio. 7

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