Icon Energy Limited Annual Report 2017

− On 8 June 2017, Icon Energy lodged an Amended Later Work Program ( LWP ) covering the period from 1 November 2016 to 30 October 2020, and amended Evaluation Program’s for each of the eight PCAs, which cover the entire area of ATP 855, with DNRM. − On 21 June 2017, DNRM approved ATP 855 Amended Later Work Program in preparation for the next phase of activity in the permit. − On 7 July 2017, the Department of Environment and Heritage Protection ( DEHP ) accepted Icon’s bank guarantee to comply with the financial assurance obligations of the ATP 855 Environmental Authority. Icon has also contracted SGS Services personnel, located at Moomba, to maintain regular inspections on the existing wells in the permit and thus continuing the inspections commenced by the former operator. − A significant natural gas resource was identified in the Stage 1 exploration program, which is currently classified as a contingent gas resource. A Stage 2 exploration program will be designed specifically to address outstanding technical questions and determine the commercial viability of the gas resource. − Icon is now preparing for the next stage of activity, which is a priority focus for the Company. − Icon is confident that future exploration and appraisal activities will lead to commercial gas reserves being proven within the permit, which could support the domestic market in Eastern Australia and, ultimately, succeed in satisfying the special conditions required to finalise Icon’s Gas Contract with China. ATP 626 Surat Basin Queensland − ATP 626 is currently in the last term with the Later Work Program covering the period from 1 January 2014 to 31 August 2017. − In the third quarter Icon commenced plugging and abandoning ( P&A ) the three remaining wells in the permit, Eolus-1, Mindagabie-1 and Stitch-1, which had been suspended and monitored on a monthly basis for several years. − Rehabilitation of these wells was completed in accordance with Government regulations and Icon’s Environmental Authority was finalised by the end of January 2017. − Icon is currently in the process of completing the end of tenure reporting obligations for ATP 626 with the DNRM and the DEHP in order to relinquish the permit. ATP 549 (West) Cooper Basin Queensland − Icon has a 33.33% interest in the permit and there has been no activity in ATP 549 (West) in the Cooper Basin throughout the year. − The Operator, Beach Energy Limited, recommended to the joint venture and Icon agreed that the permit be relinquished on its expiry on 30 April 2017. ATP 794 Cooper Basin Queensland − There has been no activity in the Springfield and Regleigh Blocks within ATP 794, located on the eastern flank of the Cooper Basin. The permit is operated by Senex Energy Limited and Icon has a 60% interest in both blocks. − The ATP 794 permit expiry date is the end of October 2017. Senex, the Operator have recommended and Icon have agreed that these two blocks will be allowed to naturally expire at that time. PEP 170, 172 and 173 Gippsland Basin Victoria − During the 2017 financial year, PEP 170, 172 and 173 remained subject to the General Moratorium covering all drilling in onshore Victoria. During the Moratorium, Icon suspended all field work in PEP 170 and the granting of PEP 172 and PEP 173 has also been deferred. − The Victorian Government advised Icon that the Resources Legislation Amendment (Fracking Ban) Act 2017 came into effect on 16 March 2017. The Act bans hydraulic fracturing under the Petroleum Act (Vic) 1998 and imposes a moratorium on petroleum exploration and petroleum production in the onshore areas of Victoria until 30 June 2020. − Icon has continued to extend the PEP 170 permit for the time being, paying all necessary fees, to keep the permit in good standing. PRLs 33 to 49 South Australia − In PRLs 33 to 49 in South Australia, which were formerly PEL 218, there has been no activity throughout the year. Icon has a 33.33% interest in the Post-Permian section in these licenses, which are operated by Beach Energy. FINANCIAL REPORT 25 ICON ENERGY ANNUAL REPORT 2017