Ann: Nangwarry-1 Exploration Well Update, page-2

LKO Announcement of Today !!!

Lakes Oil NL (Lakes Oil or Company; ASX:LKO) is pleased to advise that drilling of the
Nangwarry-1 gas exploration well was completed late on 31 December 2019 with total
depth (TD) being reached at 4,300 metres measured depth (mMD). The secondary target
reservoir had been intersected but, unfortunately, was not gas-bearing.

Logging of primary target, the Pretty Hill Formation where two potential gas-bearing
intervals (each about 140 metres thick) were encountered, is now under way. This
involves running a selection of different tools through the well to measure parameters
such as porosity and permeability, and to obtain gas samples. A strategy for testing and
completion of the well will then be formulated.

Subject to the logging results confirming the potential of the gas shows flow testing of the well will be carried out as soon as
requisite approvals and equipment are in place.

Cheers !!!