Icon Energy Limited Annual Report 2016

DIRECTORS' REPORT for the year ended 30 June 2016 The Directors of Icon Energy Limited (Icon Energy or Company) present their report together with the financial statements of the Company and its controlled entities (“the Group” or “the Consolidated Entity”) for the financial year ended 30 June 2016. In order to comply with the provisions of the Corporations Act 2001 , the Directors of Icon Energy report as follows: PRINCIPAL ACTIVITIES The principal activities of Icon Energy during the year included the exploration, appraisal and development of oil and gas properties. There were no significant changes in the nature of these activities during the year. DIRECTORS The Directors of the Company who held office during or since the end of the year are set out below: Name Position First Appointed Stephen Michael Barry Non-executive Chairman Director since 05/01/1993 Raymond Swinburn James Managing Director Director since 01/02/1993 Dr Kevin Jih Executive Director, Chief Financial Officer & Company Secretary Director since 30/11/2011 Dr Keith Hilless AM Non-executive Director Director since 03/04/2009 Howard Lu Non-executive Director Director since 07/01/2011 Derek James Murtagh Murphy Non-executive Director Director since 20/03/2009 Details of the qualifications and experience, other directorships of listed entities and special responsibilities of Directors are set out in the Board of Directors’ section of this Annual Report. Refer to table 8 of Remuneration Report for Directors’ interests in shares and performance rights. REVIEW OF OPERATIONS AND RESULTS A review of operations of the consolidated entity during the financial year and the results of those operations is included in the Review of Operations section of this Annual Report. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS ATP 594 Cooper-Eromanga Basin Queensland − ATP 594 was renewed by the Department of Natural Resources and Mines, with a renewal date of 17 April 2015. The current approved term of ATP 594 is for 4 years, with an opportunity to apply for a renewal at the end of the 4 year time period. There is a further opportunity to renew after 8 years, which if granted, would take the maximum term allowable for the ATP to 12 years. − ATP 594 is currently in the first half of Year 2 of the first 4-year period following its renewal in April 2015. − A preliminary technical evaluation has indicated a high degree of prospectivity within the permit, which has helped to focus future exploration activity. − Landholder Conduct and Compensation Agreement’s (CCA’s) are currently being finalised through the landholders’ legal representatives in preparation for access to their land to carry out field operations. − Preparations continue towards acquiring a 3D seismic survey in the permit to enable accurate structural definition of the sub-surface. Queensland Cooper Basin 2015 Acreage Release − Icon has applied for additional Tenures offered by the Queensland Government in the Cooper Basin as part of the 2015 Acreage Release. The Tender process closed in October 2015, but the results of the tenders have not yet been announced by the Department of Natural Resources and Mines. FINANCIAL REPORT 26 ICON ENERGY ANNUAL REPORT 2016