ASX/MEDIA RELEASE‌‌‌‌‌‌‌‌

29 July 2016

Quarterly Activities Report - End June 2016

Highlights:

Tanzania - Kiliwani North and Nyuni Block

• Gas plant commissioning and charging the gas pipeline was completed just post the end of this Quarter‌‌

• Full scale production at a rate of 25- 30 MMcfd (2.4 - 2.8 MMcfd net to Bounty) is expected to be achieved for most of September Quarter.

• Bounty's share of net cash revenue is anticipated to be between A$2.42 and A$3.49 million pa once full production is achieved.

• Nyuni PSA - new 3D seismic planned to image deep water turbidite gas plays of up to 1.3 TCF potential.

  Australia

• Bounty exits June 2016 with $1.76 mill cash and current assets of $1.99 mill.‌

• June 2016 Quarter revenue totalled $0.310 million on production of 7,529 boe of crude oil and gas.

• Bounty finalised an agreement to cement full control of the PL2 Alton Oilfield and surrounding areas in the Surat Basin and to exit PL214 Utopia.

• High Impact Oil Business strategy moving Bounty's 100% AC/P 32, Timor Sea project to farm out and drill the 100 MMbo recoverable Azalea Prospect.

• PEP 11 - Preparations for Baleen 2D seismic acquisition program progressing.

  Oil Business - Production:

  Bounty produces from two areas - Naccowlah Block in SW Queensland and Kiliwani North Gas Field in Tanzania. The Downlands Field in the Surat Basin Queensland is shut in pending lease renewal and development.

  Sales revenue increased to $310,581 for the quarter primarily due to commencement of ramp up gas production at Kiliwani North Gas field in Tanzania (see below) while partially offset by lower crude oil sales and volumes.

  Bounty's unaudited petroleum revenue, production and sales for the quarter ended 30 June 2016 are summarised below.

  SW Queensland

  Exit from PL 214 Utopia Eromanga Basin,

  During the Quarter Bounty closed the agreement announced to the ASX on 18 May 2016 with two subsidiaries of the Bridgeport Energy Limited (Bridgeport) group for Bounty to acquire additional oil development and exploration interests in Petroleum Lease 2 (Alton) located in the Surat Basin, East Queensland and to exit oil production from the 40% owned PL 214 Utopia Joint Venture . Further details are set out in Development below.

  ATP 1189P Naccowlah Block and Associated PL's - Bounty 2% Location: Surrounding Jackson, Naccowlah and Watson Oilfields

  Bounty's share of production has declined to 30 bopd due to curtailment of production optimisation activities, as a result of the low oil prices, which in the past have been able to keep pace with natural decline.

  Revenue:

  Q2	1 April - 30 June 2016	$
  Kiliwani North	Bounty Share (9.5% Interest) - Gas	125,679
  ATP 259	Bounty Share (2% Interest)	184,902
  Total Revenue (1)	310,581

  (1) GST exclusive.

  Production:

  Q2	1 April - 30 June 2016	Unit
  Kiliwani North	Bounty Share (9.5% Interest) - Mscf	29,612
  ATP 259	Bounty Share (2% Interest) bbls	2,425
  Total Production boe	7,529

  (1) Estimates.

  Sales:

  Q2	1 April - 30 June 2016	Unit
  Kiliwani North	Bounty Share (9.5% Interest) - Mscf	29,612
  ATP 259	Bounty Share (2% Interest) bbls	2,998
  Total Sales boe	8,103

  Oil Business - Development:

  Southern Surat Basin Onshore Queensland

  PL 2 Alton Oilfield Bounty - 100%; PL 2A/B Kooroon Joint Venture - Bounty 81.75%. Location: 40 km northeast of St. George, SE Queensland.

  Significant Activities during the Quarter

  During the quarter Bounty closed an agreement to acquire additional oil development and exploration interests in the Southern Surat Basin, (see above) and to settle its ongoing dispute in connection with PL 214. This agreement formalized the deal announced in the March Quarter report.

  The material terms of the formal sale/purchase agreement were as follows:

• Bounty to transfer its 40% PL 214 participating interest under the relevant JOA to Oilwells Inc of Kentucky (a Bridgeport subsidiary). Outstanding litigation to be discontinued with mutual releases.

• Bridgeport (Surat Basin) Pty Ltd to transfer all of its interests in the Alton Oilfield and Alton Block to Bounty with the result that Bounty now holds 100% of the Alton Oilfield.

• Payment of $300,000 to Bounty before adjustments.

• Usual conditions and adjustments.

  As a result of this deal and the December 2015 agreement to purchase the Santos Group interests in PL2A and PL2B (the Kooroon Block exploration interests) Bounty is now operator and holds a potential 353,000 bbls of 2P proven oil; production facilities at Alton and surrounding exploration acreage in Petroleum Lease 2 (PL2) located in the southern Surat Basin. Bounty has commenced planning for oil production from PL 2 Alton

  Details of the Alton oil development interests now held by Bounty (see Figure 1 below) are:

  Alton Oil Field - PL2

• Bounty 100%.

• Development: 167,000 bbls of recoverable oil from the early Triassic age Basal Evergreen sand reservoir included with a potential 1.136 million bbls of 2P reserves located in the three sands of the Boxvale/Evergreen Formations.

Eluanbrook - PL2

• Bounty 81.75%.

• Development: Up dip from the Eluanbrook 1 oil and gas discovery well there is an estimated recoverable resource of 186,000 bbls from P50 OOIP of 625,000 bbls.

• Middle Triassic age Showgrounds Sandstone reservoir.

• Up dip from proven 53o API gravity oil with associated gas.

Figure 1

ATP 1189P Naccowlah Block and Associated PL's SW Queensland - Bounty 2% Location: Surrounding Jackson, Naccowlah and Watson Oilfields

Background

The Naccowlah Block comprises 2,544 km2 approximately 40% of which is covered by ATP 1189 (N) and the remainder in 22 petroleum production leases (PL's) covering producing fields.

Significant Activities next Quarter and Beyond - 2016/17 Development

Proposals to drill one or two development wells at the Irtalie East field are being evaluated. Actual drilling would not take place until 2017.

Exploration:

754P - Bounty 50% - Operator,

In ATP 754P the partners are still awaiting determination by DNRM of an amended work programme. Nappamerri Trough Eromanga Basin, NE South Australia - Bounty 23.28% in section above the Permian Location: 50 Km northeast of Moomba, South Australia.

Background Land Position

The former PEL 218 has been replaced with 17 Petroleum Retention Licences (PRL) covering the deep basin gas in which Bounty has no interest. However in the post Permian section in each PRL Bounty has a 23.28% and now has very secure title to a major gas exploration Block in the Cooper Basin

There was no material joint venture activity in the quarter.

Wakefield 1 remains suspended pending a joint venture decision to undertake cased hole testing.