Ann: Quarterly Activities Report, page-208

G'day Sh1n3,

The First Period, which is formally named the Initial Exploration Period, is fixed by the Petroleum Act to be a four-year period. Under the Act, it can be extended by up to 12 months at the Minister's discretion. The Act is very clear that this is the maximum allowable extension to the Initial Exploration Period. We are currently in the 12 month extension of this First Period.

If a JV wishes to continue exploration beyond the First Period, they they will need to have fulfilled all the First Period obligations as described in the PEL87 contract and must apply to enter the the Second Period (formally named the First Extension Period). This is a two-year period (as per the Act) and can be extended (at the Minister's discretion) by up to 12 months.

The Third Period (Second Extension Period) is also a 2-year period, extendable by 12 months (Minister's discretion) and will come with new obligations again. As per above, to enter the First Extension Period (Second Period), a JV must have fulfilled the obligations of the Second Period as per the PEL87 contract.

What they have written in the ann is correct and fits with the explanation above.

Hope that helps.