Ann: Company Update, page-9

A Bit(ter) of History:

5/6/2017

MAGNUM TO INVEST IN APPRAISAL OFCALIFORNIA GAS DISCOVERY

To earn its full interests, Gasfields is required to fund upto 3 wells over the next 2 years, with options to continue exercisable between each of the 3 wells. After the first well, Magnum would contribute funding to Gasfields in line with its 60% shareholding in the Company.

28/8/2017Nextoilrush.com

Under the terms ofthe farm-in agreement, Gasfields will earn a 10% interest in the southern halfof the very large, 152 square kilometre leased land position by Tulainyo-2. Ifit decides to drill a second, deeper well in the area, Gasfields’ interest willincrease to 33.33%.

Gasfields would alsohave the option to drill a third well in the northern half of the land positionto earn up to 33.33% in the entire leased area.

Under the farm-in,the committed cost exposure of Gasfields to the earning phase of each well inthe earning drilling program will be capped, based on joint venture agreedestimates.