ANNUAL REPORT

FOR THE YEAR ENDED 30 JUNE 2016

JUPITER ENERGY LIMITED - 2016 ANNUAL REPORT

CORPORATE INFORMATION

Jupiter Energy Limited

ABN 65 084 918 481

Directors

Geoffrey Gander (Executive Chairman/Chief Executive Officer) Baltabek Kuandykov (Non-Executive Director)

Scott Mison (Executive Director)

Alexey Kruzhkov (Non-Executive Director)

Group Secretary

Scott Mison

Registered Office & Principal Place of Business

Ground Floor, 10 Outram Street West Perth WA 6005

PO Box 1282

Western Australia 6872

Telephone +61 8 9322 8222

Facsimile +61 8 9322 8244

Email [email protected]

Website www.jupiterenergy.com

Solicitors Steinepreis Paganin Level 4,

16 Milligan Street

Perth WA 6000

Auditors

Ernst & Young

11 Mounts Bay Road Perth WA 6000

Bankers

National Australia Bank Ltd UB13.03, 100 St Georges Terrace Perth WA 6000

Nomad

finnCap Ltd

60 New Broad St London, EC2M 1JJ United Kingdom

Share Registry

Computershare Investor Services Pty Ltd Level 2, 45 St George's Terrace

Perth WA 6000

Telephone 1300 557 010 (only within Australia)

+61 8 9323 2000

Facsimile +61 8 9323 2033

Website www.computershare.com

Stock Exchange Listing

Jupiter Energy Limited shares are listed on the Australian Securities Exchange under the code JPR, on the AIM Market under the code JPRL and on the Kazakh Stock Exchange (KASE) under the code AU_JPRL.

JUPITER ENERGY LIMITED - 2016 ANNUAL REPORT

Contents of Financial Report

Chairman's Letter 1

Directors' Report 2

Remuneration Report 11

Corporate Governance Statement 22

Auditor Independence Declaration 28

Consolidated Jupiter Energy Limited Financial Statements

Consolidated Statement of Comprehensive Income 30

Consolidated Statement of Financial Position 31

Consolidated Statement of Cash Flows 32

Consolidated Statement of Changes in Equity 33

Notes to the Consolidated Financial Statements 34

Directors' Declaration 72

Independent Audit Report to the members of Jupiter Energy Limited 73

ASX Additional Information 75

CHAIRMAN'S LETTER

Dear Shareholder,

JUPITER ENERGY LIMITED - 2016 ANNUAL REPORT

I am pleased to present the 2016 Annual Report for Jupiter Energy Limited ("Jupiter Energy" or "Group").

The past year has been a difficult one for the Group. The global decline in the price of oil and the flow on effect to Kazakh domestic oil prices made Jupiter's ability to produce oil on a cashflow positive basis impossible. This resulted in all the operational wells located on our permit area remaining shut in for the entire financial year. In addition, continued funding constraints meant that there was also no new drilling carried out during the same period.

As a result of this inactivity, the Group operated on a "Care & Maintenance" basis throughout the year and continued to be supported by its major shareholder with debt funding being provided as required.

On a more positive note, Jupiter Energy announced on 19 September 2016 that it had been successful in extending its Exploration Licence for a further three years (to 29 December 2019). With this three year Exploration Licence extension now secured, the Group hopes to return to domestic oil production as soon as the Trial Production Licences for the Akkar East and West Zhetybai oilfields have been renewed and Kazakh domestic oil prices improve.

As part of the three year extension of the Exploration Licence, the Group has submitted a Work Program to the Kazakh authorities for approval and this program covers the 2017, 2018 and 2019 calendar years. The Board is now working to ensure funding will be in place to carry out that program, commencing in early 2017.

The focus of the three year Work Program will be on both exploration and appraisal drilling as well as to start the building of the requisite infrastructure to allow the Akkar East oilfield to move into its Full Field Development phase - a key step in the Group achieving the first sale of export oil.

The Board remains confident in the prospectivity of the licence area and furthermore that the two oilfields that have already been discovered on our permit area can be commercially developed into significant producers.

I look towards 2017 with renewed confidence and may I take this opportunity to thank all our employees and shareholders for their continued support over the past twelve months and encourage shareholders to attend the Annual General Meeting to be held in Perth on 4 November 2016.

Sincerely

Geoff Gander

Chairman/CEO