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Investor Presentaiton

Armour Energy and controlled entities armourenergy.com.au Directors' report continued for the year ended 30 June 2020 REMUNERATION REPORT (AUDITED) CONTINUED OPTIONS GRANTED AS PART OF REMUNERATION FOR THE YEAR ENDED 30 JUNE 2020 CONTINUED During the year ended 30 June 2020, there were no options granted as remuneration to Key Management Personnel (2019: nil). Details of all options on issue over unissued ordinary shares in Armour Energy Ltd on 30 June 2020 to Key Management Personnel as remuneration are set out in the table below: KMP SHAREHOLDINGS Details of all ordinary shares in Armour Energy Ltd as of 30 June 2020 held by Key Management Personnel is set out below: Directors / Key Management Balance at Personnel N Mather S Bizzell R Sleeman R Cressey (*) K Schlobohm Vesting date Grant date - all 100% Grant number Exercise price Expiry Date Number vested Value per Balance vested K Schlobohm 29/03/2019 29/03/2016 K Schlobohm K Schlobohm 29/03/2019 29/03/2016 29/03/2019 29/03/2016 300,000 300,000 300,000 900,000 $0.195 29/03/2021 $0.345 29/03/2021 $0.495 29/03/2021 300,000 300,000 300,000 900,000 option at grant date* $0.06 $0.06 $0.06 on 30 June R Aden (**) 2020 300,000 300,000 300,000 R Fenton (*) N Rayner (***) 900,000 * Value per option at grant date is calculated using the Black-Scholes option pricing model, which takes into account factors such as the option exercise price, the share price at the date of issue and volatility of the underlying share price and the time to maturity of the option. 1 Jul 2019 3,647,968 1,659,051 58,333 2,120,054 391,049 595,462 381,287 316,045 9,169,249 1,182,396 553,015 Granted as in lieu of compensation Options exercised Net change other Balance at 30 Jun 2020 4,830,364 2,212,066 58,333 (2,120,054) 391,049 595,462 (381,287) (316,045) (1,081,975) 8,087,274 * Mr Cressey was CEO from 21 November 2011 to 23 October 2019. Mr Fenton was Interim CEO from 21 October 2019 to 20 March 2020. ** Mr Aden was employed as CFO from 23 July 2019 to 07 August 2020. *** Mr Rayner was employed as COO from 26 November 2018 to 19 July 2019. NOTE: "Net change other" above includes the balance of shares held on appointment / resignation, shares issued in lieu of authorised bonuses, and shares acquired or sold for cash on similar terms and conditions to other shareholders. PERFORMANCE SHARES The table below shows how many performance shares were granted and vested during the year. No performance shares were forfeited during the year. All other directors and key management personnel did not hold any shares in the Company at the start, during or at the end of the year. There were no shares held nominally as of 30 June 2020 (2019: nil). Option holdings KMP Expected vesting date Grant date S 3 Lingo B Lingo 30/06/2022 12/06/2020 Grant number 900,000 Exercise price Number vested Value per PS at grant date* Balance on 30 Directors/ Balance at June 2020 Key 1 Jul 2019 Granted as Options remuneration exercised $0.03 900,000 12/06/2025 12/06/2020 1,800,000 $0.02 1,800,000 management personnel Net change other Balance at 30 Jun 2020 Total vested Total vested and exercisable Total unvested and un- exercisable B Lingo 31/03/2021 12/06/2020 1,350,000 $0.03 1,350,000 N Mather 1,500,000 B Lingo 31/12/2021 12/06/2020 1,350,000 $0.03 1,350,000 S Bizzell 1,500,000 B Lingo 31/12/2021 12/06/2020 900,000 $0.03 900,000 R Sleeman 750,000 BLin B Lingo 30/06/2023 12/06/2020 900,000 7,200,000 $0.03 900,000 R Cressey (*) 4,100,000 7,200,000 K Schlobohm 900,000 8,750,000 (908,803) 4,776,505 (750,000) (4,100,000) 591,197 6,276,505 591,197 6,276,505 591,197 6,276,505 (982,298) 900,000 7,767,702 7,767,702 900,000 900,000 7,767,702 * With the exception of tranche 2, value per performance share at grant date is calculated using the share price at the date of issue. Tranche 2 contains a market based performance conditions and the value per performance share at grant date is calculated using a Monte Carlo simulation model, which takes into account factors such as the market based vesting condition, the share price at the date of issue and volatility of the underlying share price and the time to maturity of the performance share. SHARES ISSUED ON EXERCISE OF REMUNERATION OPTIONS There were no options exercised during the year that were previously granted as remuneration (2019: nil). * Mr Cressey was employed from 21 November 2011 to 23 October 2019. Note: "Net change other" above includes the balance of options held on appointment / resignation, options acquired or sold for cash on similar terms and conditions to other shareholders, and options that have expired unexercised. All other directors and key management personnel did not hold any options in the Company at the start, during or at the end of the year. There were no options held nominally on 30 June 2020 (2019: nil). 36 37 37
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