GREENVALE ENERGY LIMITED

A.B.N. 54 000 743 555

2016

ANNUAL REPORT

Corporate Directory 2

Chairman's Letter 3

Review of Operations 4

Governance Statement 9

Directors' Report 22

Auditor's Independence Declaration 32

Consolidated Statement of Comprehensive Income 33

Consolidated Statement of Financial Position 34

Consolidated Statement of Changes in Equity 35

Consolidated Statement of Cash Flows 36

Notes to the Consolidated Financial Statements 37

Directors' Declaration 56

Independent Auditor's Report 57

Tenement schedule 59

Additional Statutory Information 60

DIRECTORS

Elias (Leo) Khouri (Chairman)

Justin Dibb (Non-Executive Director) Phillip Shamieh (Non-Executive Director) Michael Povey (Non-Executive Director) Vince Fayad (Non-Executive Director)

COMPANY SECRETARY

Vince Fayad

REGISTERED OFFICE

Level 8, 1 O'Connell Street

Sydney, NSW, 2000

Ph: +61 (2) 8346 6000

Fax: +61 (2) 8346 6099

SHARE REGISTRY

Link Market Services

Level 12, 680 George Street

Sydney NSW 2000

Ph: +61 (2) 8280 7111

Fax: +61 (2) 9287 0303

AUDITORS

RSM Australia Partners

Level 13, 60 Castlereagh Street

Sydney NSW 2000

STOCK EXCHANGE

Australian Securities Exchange Level 40, Central Park

152-158 St Georges Terrace Perth, WA 6000

ASX CODE

GRV

27 September 2016

It is with much pleasure that I write to you as Chairman of Greenvale Energy Limited ("Greenvale" or "the

Company").

The 2016 financial year has been a period of change for the Company, following the completion of the sale of the Company's interests in the Nagoorin and Lowmead joint venture interests ("JV Shale Interests") to Queensland Energy Resources Limited (QER). As I outlined to you in my Chairman's letter in the notice of meeting dated 14 August 2016, the decision to sell the JV Shale Interests was a very difficult decision for Directors. However, in light of the financial position of the Company and the volatility in price in oil a prices, the time, the decision was considered to be appropriate in the circumstances.

I would like to take this opportunity to thank the former Executive Director, Steve Baird for his contribution to the Company. Steve was brought on to assist the Company in trying to expedite the exploitation of its JV Shale Interests, plus the Alpha tenement. As part of this process, the Company also embarked on a listing on the London Alterative Markets ("AIM"). Unfortunately, given the turbulent state of both the oil and capital markets, this process was not successful and as a result, the Directors decided to terminate that process and pursue the sale to QER instead. Following completion of the sale of the JV Shale Interests and in the interests of streamlining the affairs of the Company Winton Willesee resigned and Vince Fayad was appointed as Secretary. I would also like to take this opportunity to thank Winton for his efforts over a long period of time.

The Company continues to undertake work on its Alpha Resources project mainly around the area of technical evaluation and exploration of oil shale targets. However, as noted earlier, the continued low-price of oil continues to adversely affect the long term commercial viability of Alpha Resources project.

The sale of the JV Shale Interests has significantly improved the financial position of the Company with net cash at 30 June 2016 being approximately $2.4 million. The Company has actively commenced its review of an acquisition of a new asset in mining exploration both in Australia and abroad. The Board is focused on an acquisition which is considered to be value accretive to all shareholders. A number of assets have been identified and are in the process process of being reviewed by Mike Povey, the Company's technical Director. Further details will be made to shareholders once the Company is in a position of doing so. In the meantime, the Board is focused on managing its cash balances in a prudent and conservative manner.

I would also like to welcome to the Board, Justin Dibb and Phillip Shamieh. Both Justin and Phil also are substantial shareholders via their companies of the Company and more importantly, come from a background which will assist the Company in its future endeavours.

Finally, I would like to thank the shareholders of the Company for their continued support and I look forward to meeting with you at the Company's next general meeting.

Yours sincerely

Elias (Leo) Khouri Chairman