Icon Energy Limited Annual Report 2022

ICON ENERGY LIMITED AND ITS CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2022 30 June 2022 30 June 2021 Reconciliation of net cash used in operating activities to loss after income tax: $ $ Loss after income tax (1,468,076) (6,919,302) Add/(less) non-cash items: Depreciation and amortisation 374,766 82,773 Impairment expense - 1,662,567 Adjustment for changes in assets and liabilities Inventories - 153,765 Prepayments (23,699) 243,216 Trade and other receivables 20,688 3,167 Trade and other payables* (42,179) 7,491 Lease libilities 6,029 (6,695) Employee provisions 10,630 17,763 Restoration provision - 862,877 Net cash used in operating activities (1,121,841) (3,892,378) Work Programme Commitments • not later than 1 year 4,000,000 4,000,000 • later than one year but not later than five years - - 4,000,000 4,000,000 NOTE 15 - JOINT ARRANGEMENTS AND MINING TENEMENTS HELD Basin Interest % Interest % 30 June 2022 30 June 2021 100.00% 100.00% 100.00% 100.00% 33.33% 33.33% 100.00% 100.00% Gippsland 100.00% 100.00% Gippsland 100.00% 100.00% * ATP 594 expired on 16 April 2021 and is in the process of being relinquished PEP 170*** PEP 172 *** Cooper Eromanga Oil and Gas *Trade and other payables amount is exclusive of the movement in payables attributable to deferred exploration expenditure, which has been incorporated into Cash Flows from Investment Activities. Cooper Eromanga NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS The total commitments for work programmes for ATP 855 is as follows: If any of the above expenditures are not met within the life of the tenement then the Department of Mines and Energy (QLD) will require the permit to be forfeited without liability. NOTE 14 - CAPITAL AND LEASING COMMITMENTS Cooper Eromanga The following is a list of active mining tenements held by Icon Energy Ltd and its subsidiaries. The joint operation has no budgeted exploration works plan in place to perform exploration activity on the tenements in the future. As a result, this exploration asset has been fully impaired in previous periods in order to comply with the mandatory requirements of AASB 6 Exploration for and Evaluation of Mineral Resources. *** Icon did not accept the offer to take up PEP 172 and 173 from the Victorian Dept of Earth Resources. Icon applied to surrender PEP 170 and consent was given on 2 August 2022. NOTE 13 - CASH FLOW INFORMATION Gippsland Exploration expenditure commitments PRL's 35, 37, 38, 41, 43, 44, 45, 48 and 49 ** CONSOLIDATED ENTITY ** Formerly PEL 218 (Post Permian Section). Icon is withdrawing from the tenement and the JV subject to signing of the deed. PEP 173 *** ATP 855P ATP 594P* Icon Energy Annual Report 2022 47

RkJQdWJsaXNoZXIy MjE2NDg3