Ann: Quarterly Activities Report & Appendix 5B, page-19

Interesting Financials Report going forward with some concerns for me.

16.5 Mil refinancing debt (looking a lot bigger these days imo), 15 Mil cash in bank, probably close to 10 Mil to spend before EOY. Then costs to drill Q1 2019. Not much left if any, bit of a concern going forward.

Fair to say all cash burnt end of Q1. Imagine no farmout then we could encounter serious financial hardship ahead. Certainly possible if all ducks don't align up well for us from now till then..

Farmout talks progressing re IW2, seen other companies say this for 2-5yrs, but will this honestly deliver in 2018? Hope so. If farmout found, then what cash would we have left to do anything with IW2, none likely. We obviously will have to give up a lot for a farmout partner to seriously come to the table and play again with IW2. I would be happier if IW2 was put on hold for 18mths until a few conventionals drilled first.

Get back to drilling low risk, lower cash burn and with higher potential wells from 3D, as IW2 has already cost us heaps and still no success. It's pie in sky to considering this well short term until we shore up a healthier balance sheet and urgently have to find more reserves simple as that imo. Throwing everything at the HRZ is financially irresponsible imo considering our financial position now and into the future.

Finally multiple drills into 2019 on the conventional side, again looking unlikely which disappoints me as we don't have the cash after Q1 well. So when would Yukon actually happen? Hope it does sooner than later.

What 88 wish to do in this report and what is now financial prudent and able to be done is looking further apart to me at the minute. Our plan going forward could now be a 3 yr project not 12-18mths as we all hoped. Certainly many cap raisings to come and all depends on other parties now as we will struggle to go alone. Our future destiny has changed some what now and now more than ever reliant on farmouts etc. That's how I see it.

Then the big killer of companies, the dreaded consolidation will be thrown into our mix, sure of that at some stage if we continue to dilute with multiple cap raisings.

So many questions and answers are needed to predicting our future of success or failure. Joy of investing in a spec coy. Looking forward to seeing all the Q&A responses, well done all, as this is our most critical step going forward. Not sure what more Dave can actually comment on in detail apart from what he has said in this report though. As Dave at this stage wouldn't know the answers, so many aspects reliant on other parties and info to be collated.

However DW is a fighter and lets wait and see what he can do. He certainly has to work his butt off to change the sentiment of 88 now. I think the reality of a couple of failures and significant cash burn has certainly changed our market sentiment for the rest of 2018.

The poor result of IW2 and the 20Mil+ spent has set back 88 big time imo and can't see nothing but more cap raises coming unfortunately going forward at this stage. So will the pattern continue again with holders fronting the funds to keep 88 listed and running the show. Also what low cap raise price will it be and when? Cant see 3D results causing huge spike for SP. I think SP is in for prolonged periods of sideways movement.

Sorry guys but we are not as healthy as many here like to talk our position up imo. Q1 can't come soon enough. All the best to see what Dave can come up with and in the meantime plenty of buying opportunities to come. Or maybe wait for a cap raise sub 2c again. GLTA.