Ann: One Stage Frack of Quinn Creek 141, page-2

Very Pisitive Early News: Oil to Surface from Austin Chalk age equivalent formation from all 6 tested intervals  Positive results from testing have led to the decision to proceed with a one stage frack of the Austin Chalk age equivalent formation  Frack design has commenced  Frack will commence in the next 30 days Helios Energy Ltd (ASX Code: HE8 and HE8OA) (Helios or Company) has decided to undertake a one stage (approximately 200 feet) vertical frack of the Austin Chalk age equivalent section in the Quinn Creek 141 well at a depth of between 4,744 and 4,944 feet following the recovery of oil and gas from 6 intervals tested over the past 14 days. On 2 May 2018 Helios announced that oil and gas had been recovered from the Austin Chalk age equivalent section in the first behind pipe test in the Quinn Creek 141 well. A naturally fractured zone of 10 feet was perforated between 4,968 and 4,978 feet at 1 shot per foot and then acidized with 1,200 gallons of acid. The well initially flowed back 17 barrels of load water. Oil and gas were then recovered during the subsequent swabbing with the oil cut reaching 20%-30% of the swabbed fluids. In the past 14 days Helios has moved up hole and tested a further 6 intervals in the Austin Chalk age equivalent section between 4,744 and 4,944 feet. Testing of all 6 intervals resulted in fluids flowing to surface. Swabbing during testing resulted in the recovery of oil and gas from all 6 intervals. No evidence of high rates of fresh water have been encountered in the testing of these 6 intervals in the Austin Chalk age equivalent section between 4,744 and 4,944 feet. The uppermost testing resulted in the highest production rates with sustained flows of gas without water production. Helios Energy Ltd