March 30, 2018

ADX Energy Ltd has finalised the agreement announced on the 4th of December 2017 with Reabold Resources to invest US$2 million in the recently incorporated Danube Petroleum Limited which, following the recent completion of transfers, holds ADX’s 50% interest in the Parta exploration license (“Parta”) and a 100% participating interest in the Parta Appraisal Program scheduled for late 2018. The Parta Appraisal Program comprises two re-drill wells planned in the second half of 2018 to test 33 BCF of prospective and contingent resources defined on recently acquired 3D seismic, spread over a total of 5 gas reservoirs. Reabold is a UK publicly listed company that invests in near-term, high growth upstream oil & gas projects where its injection of capital will facilitate near term activity. Reabold has subscribed to an initial 10% interest in Danube with the payment of £375,940 (US$500,000) and placed £1,127,819 (US$1.5 million) million in an escrow account which will be released upon ADX issuing an Authority for Expenditure (AFE) in preparation for the drilling of the first well in the appraisal drilling program. Upon the release of escrow funds (totaling a US$2 million investment) Reabold will hold a 29% shareholding in Danube. The Reabold investment values ADX’s 71% interest in UK registered Danube at US$5 million. The funds will be utilised for the drilling of the first well of the two well Appraisal Program during the second half of 2018, which will target a combination of tested contingent gas resources and log derived prospective gas resources quantified by recently acquired 3D seismic. Parta Appraisal Program Potential Excellent economic potential is expected due to low drilling and tie in costs, availability of proximal gas infrastructure, strong gas pricing (approximately US$6.2 per MCF) and excellent fiscal terms. Multi pay zone potential is expected in both wells. Assuming all prognosed zones are successful, approximately US$85 million of post-tax NPV10 value may be realised from 33 BCF recoverable gas (assuming a multi well development). Additional un-risked prospective resources of approximately 300 BCF of gas and 45 MMbbl of oil have been identified on the basis of existing 2D seismic in the rest of the Parta permit which can now be targeted with recently completed 3D seismic program permitting. (Source: ADX Energy)