Ann: Trinidad Waterflood Projects Update-RRS.AX, page-2

Trinidad Waterflood Projects Update The Company is pleased to provide an update on its waterflood projects in Trinidad with the following highlights:  The Company is making significant progress with implementing the full scheme on its waterflood projects;  Waterflooding is estimated to increase the total recovery factor to over 30% over the next 8 years;  The majority of the Company’s forecast Trinidad production of 2,500 bopd by the end of 2017 is expected to be achieved from the waterflood projects;  The environmental approvals for use of the additional water and construction of the new water pipeline on the Morne Diablo project have been granted;  The Company applied for approvals to conduct injectivity testing on the additional waterflood project in the South Quarry block, planned for early next year; and  A total capex budget US$17 million for waterflood projects for 2016 is fully funded by purchase order 2 of US$50 million with LandOcean with credit terms of 720 days.