Investor Presentaiton

Armour Energy and controlled entities armourenergy.com.au Directors' report continued for the year ended 30 June 2020 SUSTAINABILITY CONTINUED HEALTH AND SAFETY The safety of our employees, contractors, and the communities where we operate continues to drive Armour focus to continually improve our Safety Management System based on review of our safety performance and the effectiveness of controls that we implement. For the 2020 financial year, regrettably the Kincora Gas Project recorded 3 recordable incidents, which when converted to a base of one-million man hours, results in Armour Energy reporting a company TRIFR (Total Reportable Incident Frequency Rate) of 33. Armour is striving for TRIFR returning to 0 through a focus on Driver Safety and Working in Hot Environments. Ship inspections of our Operating sites by the Department of Natural Resources, Mines and Energy (DNRME) has not determined any regulatory noncompliance and the group continues to work with the regulators to meet obligations with no formal notices or penalties being received. INDUSTRY COLLABORATION In 2019 Armour Energy Ltd joined Safer Together and is committed to being part of an industry working group committed to creating the leadership and collaboration needed to build a strong and consistent safety culture. creat ENVIRONMENT The Group's operations are subject to environmental regulation under federal and state legislation. For the year ended 30 June 2020, Armour Energy reported outstanding environmental performance with 0 recordable environmental incidents reported. S 46 The Group has focused on the continued development and improvement of the Armour Environmental Management System in order to assure that the Group continues to meet all environmental obligations. Armour has been successful in obtaining strategic Environmental Approvals that has led to amalgamation of several Armour Environmental Authorities (EA) to create the Kincora Gas Project EA. The new EA has adopted Streamline Model Conditions that represents a significant commitment from Armour to continue to minimise harm to the environment through complying with conditions that are outcomes-focussed and that provide transparency and consistency across the petroleum industry. CLIMATE CHANGE DISCLOSURE Armour recognises that the world is transitioning to a low-carbon future, and that climate change is an important political, social, environmental, and commercial issue. In addition, the Company recognises the increasing level of investor and regulatory expectation that the particular risks faced by the Company - and its stance generally on climate change issues - will be addressed in its Annual Report. Armour is well positioned to contribute to a lower-carbon future through the production and supply of natural gas. This stems from the fact that emissions from the combustion of natural gas per unit of energy produced are approximately 40% lower than coal. Furthermore, natural gas can significantly improve air quality in urban centres due to its comparative negligible particulate and Sulphur Oxide emissions, together with low Nitrogen Oxide emissions. Natural gas is also an advantageous fuel for baseload and supplemental power generation supporting the increasing renewables sector, as gas-fired generation can be triggered from zero to full production in minutes and is 40% less carbon-intensive than coal- fired generation. Whilst gas is a complimentary, transitional fuel supporting intermittent renewable energy generation, it is also important to note that natural gas is also used as a feedstock for many other applications including heating in foundry's and furnaces, plastics and petrochemicals, fertilisers and food manufacturing for which there are limited other viable alternatives. Armour is currently responsible for only <0.01% of the natural gas produced and sold in, and exported from, Queensland. However, the Company is committed to contributing to a lower-carbon future through the sale of its natural gas products (as above) as well as the reduction of its own carbon footprint. Armour Energy Ltd can confirm that for the period 2018 - 2019 it met the corporate group thresholds prescribed by the National Greenhouse Gas Reporting (NGER) Act with reporting being completed in October 2019. The vast majority of the Company's gas-related infrastructure components (gas plant, gas pipelines, well-heads, compressors, and associated field equipment) are essentially "legacy assets" acquired from Origin Energy as part of the overall acquisition of the Kincora Gas Project near Roma in Queensland, which was completed in 2016. Based on the operation and maintenance of these assets during its period of ownership, Armour has established the following initiatives to reduce emissions and environmental impact: Reduction of "fugitive emissions" via leak management and preventative maintenance programs. Optimisation of the plant to run more efficiently and consume less fuel gas for own use. Optimisation of staff movements and logistics to reduce road traffic and distance travelled in our operations and projects. Replacement on a needs-basis of old items of plant and equipment with newer items which are less prone to gas leakage, breakdown and are more energy efficient. Execution of the Kincora Stack Emission Monitoring Program to provide baseline air emission data for assessment against EPP Air regulatory emission framework. Results show that emissions are below the EPP Air Quality Objectives. The responsible and progressive remediation of petroleum facilities that have reached the end of their lives to enable the return of land to the landholder in a condition which complies with all relevant environmental and regulatory requirements. New well site facility installations will include electrically driven instrumentation powered by local solar panel arrays. Furthermore, Armour minimises its impact on land and waterways in relation to development and exploration activities by undertaking the following: " Assessment of regional and local aquifers to characterise the geochemistry of formation water prior to and during initial stages of exploration and development activities. Ongoing baseline monitoring of groundwater quality to detect any changes during and after the cessation of exploration and development lifecycles. Assessment and survey of local ecological communities within and around our development, exploration and production tenements, and the implementation of innovative approaches to negate and reduce footprint and minimise vegetation clearing; and Staying educated on improved and innovative environmental technologies that could have the greatest potential for reducing overall energy consumption during the exploration and development lifecycles. 47

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