Ann: Dispatch of Rights Issue Documents, page-10

Whenever I take a position in a stock, I have an expectation that I will conservatively double my money within 12-18 months time. My main consideration is whether there is a lot more upside in a stock than there is downside.

For example, I can’t see us falling much more from these prices (unless the broader markets tank,
which could conceivably happen due to all the uncertainty at the moment but don’t worry I will be buying more if that happens). We are only a 50 million market cap. We were priced at 4 cents back in may 2020 when gas prices were about $3.00 per thousand cubic feet. Gas prices per thousand cubic feet is more than double that today so effectively the market is valuing us at the same valuation it did back then but we are simply now worth twice as much today just because the commodity price has doubled. Effectively, the market is discounting the progress the company has made over the last two years, which is where I believe there to be a mis pricing opportunity.

With the market cap where it is today, I think we should be valued at a bare minimum 100 million. Comparatively, we should be on par with Galilee Energy and Invictus Energy in my opinion. Fair value is probably anywhere between that 100-200 million mark for our cash on hand and where our project is currently. I can’t justify attributing any more of a market cap than that as there are too many variables which can change the overall valuation. Cheers, CP.