Here it is

25 October 2016
Execution of Agreements for A$11m Placement with Two US Based Institutional
Investors
88 Energy Limited (“88 Energy”, “the Company”, “Operator”) (ASX, AIM: 88E) is pleased to
announce that it has reached agreement (subject to settlement) regarding a placement to raise
gross proceeds of A$11m (before fees and expenses) to two US-based institutional investors (the
“Placement”). The net proceeds from the Placement will be used to strengthen the Company’s
balance sheet ahead of the upcoming drilling of Icewine#2 in 1Q2017, pursue complementary
growth opportunities in Alaska and for general working capital purposes.
Pursuant to the Placement the Company will issue 275m ordinary shares of no par value (the
“New Ordinary Shares”) at a price of A$0.04 (equivalent to ~£0.025) per New Ordinary Share. In
addition, 137.5m unlisted options (“Placement Options”) at an exercise price of A$0.055
(equivalent to ~£0.034) expiring on the five-year anniversary of completion will be issued to the
investors. If exercised, the Placement Options would result in receipt of supplementary funds of
~A$7.6m at a premium to the current market price. After the two-year anniversary of the
Placement, the Company may redeem the Placement Options for A$0.001 per option share if the
volume weighted average price of its ordinary shares is above A$0.12 per share for 20
consecutive trading days commencing after such two-year anniversary. There can be no
guarantee that the Placement Options or any of the other options on issue will be exercised.
Maxim Group LLC, a full service US based investment bank, acted as the US placement agent
for the Placement. A placement fee of 7% is payable to Maxim Group LLC in respect of the funds
raised in the Placement. In addition, Maxim Group LLC will be issued with ~22m unlisted options
to acquire ordinary shares in 88E at an exercise price of A$0.05 per share, expiring on the fiveyear
anniversary of completion (“Placement Fee Options”) in connection with the transaction.
The Placement is being conducted within the Company’s 15% placement capacity under ASX
rule 7.1 and results in dilution to shares on issue of 7.1%, with another 4.0% possible if all of the
Placement Options and Placement Fee Options are exercised.
Application has been made for admission of the New Ordinary Shares to trading on AIM, which is
expected to occur on 31 October 2016. Following the issue of the New Ordinary Shares, which
rank pari passu to the existing ordinary shares in the Company, the Company has 4,169,180,418
ordinary shares in issue, all of which have voting rights.
Managing Director of 88 Energy Limited, Dave Wall commented: “It is encouraging to receive this
level of support from the USA, where Project Icewine is domiciled. The Company is now in a
stronger position to exploit opportunistic growth opportunities in Alaska and has increased
flexibility in regards to upcoming operational activity. Progress at the Icewine#2 production test
well remains on track for commencement of drilling in 1Q2017, which is now just around the
corner. Success at Icewine#2 could unlock over 2.5 billion barrels of oil potential for our
shareholders and we are, understandably, looking forward to the upcoming well with great
anticipation.
We would like welcome our new US investors to the register and give special thanks to our US
based broker, Maxim Group, for providing timely market advice and smooth execution on this
placement.”
Yours faithfully
Dave Wall