Icon Energy Annual Report 2019

Mr Stephen Barry Chairman and Non- executive Director of Icon Energy Limited. Chairman’s Letter Icon also held and still holds working interests in these tenements: −− PEP 170 in Gippsland Basin (permit granted) and in PEP 172 & 173 (where the issue of the permit is subject to Ministerial Grant when the moratorium is lifted) – 100% working interest and operator. While the tenements are prospective, the moratorium on exploration in Victoria prevents any work being conducted until at least June 2020. −− A 33.33% working interest in the post-Permian section of PRL’s 35, 37, 38, 41, 43, 44, 45, 48 and 49 (formerly part of PEL 218 in Cooper Basin, South Australia), following a partial relinquishment of the other PRL’s. Icon’s main focus remains on obtaining funding for its two separate projects being ATP 855 and ATP 594. At the date of this report, no agreement has been reached. Icon’s team is keen to commence operations as soon as possible once funding is obtained. All field operations currently are on a care and maintenance basis only but Icon plans to conduct some field rehabilitation this financial year. Until new funding can be obtained, Stage-2 operations in ATP 855 and drilling in the ATP 594 tenement must stay on hold. In Victoria, holding costs of approximately $18,000.00 per year are paid to preserve Icon’s interest in the tenements. I now turn to the issue of “Asset Impairments” and draw your attention to the detailed material which appears on page 41 of Icon’s financial accounts and also in Note 1. You will be aware that Icon had previously included the value of its “Exploration and Evaluation Expenditure” as an asset in its accounts. The lack of funding means that Icon cannot budget for further significant work at this time and under the Accounting Standards, Icon was required to and has determined that the value should be impaired. Dear Shareholder It is with deep regret that I report that in the 2018-2019 financial year Icon Energy did not succeed in achieving a farmout for either of its two most promising tenements. The tenements are ATP 855 and ATP 594 in Queensland. A giant gas resource has been discovered in ATP 855. ATP 594 is located on the eastern flank of the Cooper Basin and lies within the prospective oil and gas fairways. Icon holds a 100% working interest and is the operator in each tenement. Icon remains optimistic that it will achieve success in finding a deal. Icon Energy can report that at the end of the financial year: −− A cash balance of $8,834,705.00 at 30 June 2019. −− ATP 855 in the Cooper Basin contains 8 Potential Commercial Areas (PCA’s). A PCA lasts for up to 15 years from 28 August 2017 i.e. up to 27 August 2032, which provides a lengthy timeframe for the commercial development of each area. Icon Energy holds a 100% working interest and is the Operator. −− ATP 594 is also situated in the Cooper Basin and prospective for oil and gas. The current permit has been extended for two years up to 16 April 2021. Interpretation of the Harrier 3D Seismic Survey in ATP 594 was completed which has identified drilling targets – Icon Energy holds a 100% working interest and is the Operator. 2 Icon Energy Annual Report 2019