September 2017

Investor Presentation Galilee Energy

Peter Lansom

Managing Director

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Company Overview

§  Oil and gas explorer with strong balance sheet

§  Experienced management team with a demonstrated hands-on track record of top tier Australian CSG exploration and development

§  Strong shareholder alignment with the directors and management who are well invested with over 8% ownership.

§  The 100% owned Glenaras Gas Project is a highly strategic asset in the Galilee Basin. One of the largest remaining Contingent Resource gas projects on the Australian east coast.

§  Well placed to supply competitively priced gas into the structurally undersupplied Australian east coast gas market.

Location of Glenaras Gas Project (Galilee Basin)

Glenaras Gas Project

Corporate snapshot

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Financial information

Share price (5 September17) A$0.095

Number of shares 152.1M

Market capitalisation A$14.4M

Cash (30 June 17) A$6.1M

Debt (30 June 17) No debt

Enterprise Value A$8.3M

Top shareholders (as at 1 August 2017) Ecarlate 12.1% Slade Technologies Pty Ltd 4.3% Becamal 3.6% Mr P and Mrs S Bilston 2.9% Directors and management 8.3%

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Price and volume

Volume Period average volume Share price

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Glenaras Gas Project Overview

§  Large scale, independently assessed resource

§  Strong geological understanding (20+ exploration wells, 700km seismic, two multi-well pilots)

§  Close to market, only 80km to Barcaldine Power Station and Cheepie gas pipeline.

§  Low field development cost (~$6-7/GJ delivered)

–  No fracture stimulation

–  Low water treatment cost, reinjection solution

§  Strong stakeholder relationships

–  Community consultation through industry Operator’s forum

–  Less than 12 landowners within the 2C Contingent Resource area. Flat grazing country.

Category Resource-Estimate-(PJ)1C 3082C 2,5083C 5,314

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Glenaras Gas Project - CSG properties

§  Successful CSG projects require three key parameters: –  Resource Concentration (thickness, gas content) –  Productivity (thickness, permeability) –  Pressure drawdown in the coal (well design)

§  Resource concentration and coal productivity have been proven across the permit

§  Comparable to world class projects such as Spring Gully and Fairview

Coal depth (m) 900 - 1,000

Net coal (m) 19

Gas content (m3/t) 5.3

Permeability (md) 45

Resource concentration (bcf/km2) 5.2

R1

R3 R2

R4

R5

R6 R7

Betts Creek Coal – Core area properties

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Coal

Permeability barrier (siltstone)

Water Bearing Units

The Betts Creek Coal sequence exhibits excellent qualities for gas production

Glenaras R1 seam – Vertical well pilot

§  R1 seam is the thickest seam, never completed in initial pilot testing at Glenaras. §  Not affected by previous fracture stimulations.

§  All five vertical wells recompleted to the R1 seam in late 2015.

§  Pilot was successful at producing water from the coal only – a first for the Permit.

§  Due to low permeability in this area, water rates were not sufficient to achieve large areal desorption in the coal.

–  Additional drawdown required.

§  Lateral well drilled from Glenaras 5 to Glenaras 3 in late 2016 to improve deliverability, accelerate results.

A TEST OF THE R1 SEAM AT GLENARAS WAS THE LOWEST COST OPTION TO APPRAISE THE SIGNIFICANT RESOURCE

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Glenaras R1 seam pilot outcomes

§  Excellent data gathered from this pilot work has determined to the pathway forward to commercialisation.

§  Summary of R1 Pilot results:

§  Revised artificial lift system has performed flawlessly.

§  Coal architecture has a strong directional permeability due to master cleat system, positive feature for development.

§  Coal can be developed without major interference from interbedded sands.

§  Recent advances in lateral drilling technology allow excellent well control to stay within coal seams while drilling.

§  Comparison with analogous pilots in similar coals confirm that multi-lateral well pilot should achieve commercial pilot results and booking of first Reserves for the Basin.

§  Permeability in the R1 coal in this location too low.

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Using the same approach in better coal should quickly prove commerciality

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Glenaras Gas Project – New Lateral Pilot

§  Target good permeability coal in the near vicinity of the R1 pilot. Allow use of existing key infrastructure; camp, pond, flare.

§  Pilot design is 3 new lateral wells intersecting 3 new vertical wells drilled perpendicular to master cleat orientation.

§  Work currently under tender.

§  Drilling planned prior to year end dependent on approvals and rig availability.

§  Production results expected mid 2018 followed by Reserve certification.

§  Forward plan is small scale development (<20 wells plus gas plant) to supply Energy Queensland’s Barcaldine Power Station and domestic market via Cheepie pipeline.

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Additional areal drawdown required to achieve gas desorption over a large area

Several pipeline options

§  Galilee Energy are in discussion with a number of gas customers:

–  Domestic and export –  Significant interest in Galilee Basin as new

source of supply by both Government and buyers.

§  Early stage commercialisation option to Barcaldine Power Station and flowline to SWQ pipeline.

§  Detailed discussions with pipeline groups and Queensland Government on best pipeline options.

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Multiple market and pipeline options

§  The Glenaras Gas Project has the potential to be a significant new supply source for Queensland.

§  Galilee is the leading explorer in the Basin, close to unlocking Reserves.

§  Project is expected to be price competitive to East Coast domestic market.

§  Project timeline shows first gas supply achievable by end 2020.

§  Project will provide valuable growth and a new industry to the region.

Investment Summary

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Real potential for Galilee Basin to be a significant new supply source

Appendix

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BACKGROUND ON GALILEE MANAGEMENT

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Board and Management

Experienced oil and gas team

Dr. David KingNon- Executive Chairman PhD, MSc,

FAusIMM, FAICD.

Peter LansomManaging Director B.E. Petroleum (Hons)

Ashley EdgarGeoscience ManagerB. App Science (Applied Geo)

Gerard RyanGeneral Manager -

OperationsB.E. (Mech & Petroleum)

40+ years senior experience in

Oil & Gas.

Founder and NED of Sapex

Ltd, Gas2Grid and Eastern Star

Gas.

Previously, MD of North

Flinders Mines and CEO of

Beach Petroleum and

Claremont Petroleum.

Currently Non-executive

Chairman of Cellmid Ltd,

Litigation Capital Management

Ltd and African Petroleum

Corporation Ltd.

30+ years experience in

conventional and coals seam gas

exploration and development.

Significant expertise in

subsurface engineering, asset

valuation, field development

planning and commercial and

corporate finance.

Previous roles included Chief

Petroleum Engineer at Origin

Energy. Key team member of

the initial exploration and

development of Origin’s CSG

portfolio.

30+ years experience in

conventional and

unconventional exploration and

appraisal. Ashley was the key

geoscientist involved in building

the Origin Energy CSG

expertise and asset portfolio

from 1995 to 2007, including

booking its first reserve position

of > 2400PJ. Also a key

member of the ESG team that

unlocked over 1500PJ of 2P

reserves in the Gunnedah

Basin.

22+ years experience in the

petroleum sector in operational,

drilling, development and

production roles. Gerard has

extensive expertise in well,

gathering and facility design,

construction, commissioning

and operations. Gerard has

worked extensively in field roles

within Roma, Surat, Chinchilla,

Wandoan and Longreach.

PROVEN TEAM WITH EXTENSIVE CSG EXPERIENCE