Icon Energy Limited Annual Report 2016

The Government in Victoria has permanently banned unconventional gas exploration and production from all onshore areas in Victoria. The Moratorium on conventional gas exploration onshore has been extended until 2020. As a consequence, it is highly unlikely that Icon will ever be permitted to drill in PEP 170 or have PEP 172 and 173 granted. Icon is awaiting formal Government advice on our Victorian tenements and is continuing to maintain our position pending a future decision. Icon can only be patient and hope for a return to a balanced and better informed argument which is acceptable to the people of Victoria. Icon has widespread support for its planned activities which are strongly supported by scientific research and trusts that gas exploration will be allowed in Victoria where nearly all homes are connected to gas, along with industry. Some form of fossil fuel will be needed well into the next fifty years while the new “electric dream” gathers pace. It will be a very expensive and long transition. Ultimately, a balanced mix of all fuel sources will be needed. Gas has a good future, being the cleanest of all fossil fuels and will be needed to back up electric power generation. Throughout the past year, Icon has reduced expenditure and preserved its strong cash position which as at 30 June 2016 stood at over AUD$17 million. The office building is debt free and staff numbers have been reduced to the bare minimum. No staff bonuses were paid for the year. Icon has an experienced dedicated Board of Directors and staff who have managed the Companies’ interests so that today, Icon is positioned very well for the future. Many opportunities and tender offers have been evaluated to seek the best opportunities for the benefit of all shareholders. Icon’s Corporate Governance, strategic and risk analyses are robust and observed in all aspects of our work. Safety is always regarded as priority number one in everything we do, not only in the field operations but our office environment as well. An extensive Safety Management Reporting System has been introduced over the past three years covering all our operations. I would like to thank the staff for their dedication over the past year and hope that a return to new exploration activity and a firming oil price will see a positive improvement in Icon’s share price. S M Barry Chairman Icon maintains its commitment to sound environmental management and continues to build strong relations with stakeholders in the communities in which we operate. Mr Stephen Barry Chairman and Non-executive Director of Icon Energy Limited. 3 ICON ENERGY ANNUAL REPORT 2016 CHAIRMAN’S REVIEW