www.lionenergy.com.au May 2016

Review of operations and

forward plans

Annual General Meeting

July 2014 to December 2015 Reporting Period

Lion Energy Limited

May 2016

A New Approach to Asian Energy

A New Approach to Asian Energy

Important notice and disclaimer

Forward-looking statements

Certain statements contained in this presentation, including information as to the future financial or operating performance of Lion and its projects are forward-looking statements. Such forward-looking statements:

• should or can generally be identified by the use of forward looking words such as "anticipate", "believe", "expect", "forecast", "estimate", "will", "could", "may", "target", "plan" and other similar expressions within the meaning of securities laws of applicable jurisdictions, and include earnings guidance and statements of intention about future matters and the outcome and effects of the equity raising. Indications of, and guidelines or outlook on, future earnings, distributions or financial position or performance are also forward looking statements;

• are based upon a number of assumptions and estimates that, while considered reasonable by Lion, are beyond the control of the Company has they are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies;

• involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward- looking statements; and

• may include, among other things, statements regarding targets, estimates and assumptions in respect of production, prices, operating costs, results, capital expenditures, reserves and resources and anticipated flow rates and are or may be based on assumptions and estimates related to future technical economic, market, political, social and other conditions.

This Document is provided to the recipient on the basis that the recipient understands and acknowledges that it may not rely in any way whatsoever on the Document or other information. Unless legally required, the Company undertakes no obligation to update publicly any forward looking statements, whether as a result of new information, future events or otherwise.

General Disclaimer

The Company has taken all reasonable care in producing the information contained in this document, however it does not guarantee the accuracy of information or analysis provided. The Company will not be responsible for loss or damage arising from the use of this information. The contents of this document should not be used as a substitute for detailed investigations or analysis and we strongly recommend you obtain independent professional advice before making any investment decisions about the Company.

You may use the information for your own personal use or to inform others about our materials, but you may not reproduce or modify it without our express permission.

Competent Persons Statement: Qualified Petroleum Reserves and Resources Evaluator

Pursuant to the requirements of the ASX Listing Rules Chapter 5, the technical information, reserve and resource reporting provided in this document are based on and fairly represent information and supporting documentation that has been prepared and/or compiled by Mr Kim Morrison, Chief Executive Officer of Lion Energy Limited. Mr Morrison holds a B.Sc. (Hons) in Geology and Geophysics from the University of Sydney and has over 28 years' experience in exploration, appraisal and development of oil and gas resources - including evaluating petroleum reserves and resources. Mr Morrison has reviewed the results, procedures and data contained in this presentation. Mr Morrison consents to the release of this report and to the inclusion of the matters based on the information in the form and context in which it appears. Mr Morrison is a member of AAPG.

Lion Reserves and Resources

Notes:

1. Reserve estimates have been calculated using the deterministic method. Analysis of performance trends were used to estimate proved developed reserves. The performance trends associated with new well were used to assess how wells scheduled for future drilling would perform for the purpose of estimating proved undeveloped reserves as well as the probable and possible reserves associated with the future wells. Reserves were estimated only to the expiration date of the PSC.

2. Includes Undeveloped Reserves which are quantities expected to be recovered through future investments: (a) from new wells on undrilled acreage in known accumulations, (b) from deepening existing wells to a different (but known) reservoir, (c) from infill wells that will increase recovery, or where a relatively large expenditure is required to either recomplete an existing well or install production or transportation facilities for primary or improved recovery projects.

3. Undeveloped Probable and Possible reserves are included in this table however it should be noted there is uncertainty on whether these can be recovered prior to PSC expiry in 2019 as they recovery will require significant investment.

4. Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingent resources have an associated chance of development (economic, regulatory, market and facility, corporate commitment or political risks). These estimates have not been risked for the chance of development. There is no certainty that any portion of the contingent resources will be developed and, if developed, there is no certainty as to either the timing of such development or whether it will be commercially viable to produce any portion of the resources.

5.3C contingent resources have not been calculated for the Lofin Field. The 3C number provided refers to Oseil area only.

1. Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery (geological chance of success or GCOS) and a chance of development (economic, regulatory, market and facility, corporate commitment or political risks). The chance of commerciality is the product of these two risk components. There is no certainty that any portion of the prospective resources will be discovered and, if discovered, there is no certainty that it will be developed or, if it is developed, there is no certainty as to either the timing of such development or whether it will be commercially viable to produce any portion of the resources. For the prospective resources, an oil case has been estimated below the total depth of the existing Lofin-1 ST well.

2. Aggregation method. Prospective Resources in this Table have been estimated probabilistically at lead level but combined arithmetically to provide the portfolio number. The aggregate P90 may be a very conservative estimate and the aggregate P10 may be a very optimistic estimate due to the portfolio effects of arithmetic summation.

3. No prospective resources provided for the Unconventional Joint Studies or Joint Study Applications as these have not yet been converted to PSC's as at 31 Dec 2015.

   Reporting period (July 2014-Dec 2015) - Highlights

   Outperformed appraisal/production forecasts, adjusting course to conventional growth strategy

   Operations

   • Lofin-2 appraisal well in Seram (Non-Bula) PSC highly successful with up to 1300m gas column defined and Contingent Resource (2C) of 2.02 tcf (50 bcf net to Lion)

   • Successful ongoing Oseil development drilling, increasing production to average 3222 bopd (80 bopd net to Lion) for the period 1 July 2014 to 31 December 2015 (2589 bopd in previous financial year), current 4175 bopd

   • South Block A PSC: 183 km 2D seismic survey high-graded portfolio; planned 2016 drilling of shallow low risk oil well

   • Two unconventional joint studies completed post year end with positive results, progress on other unconventional joint study applications over North and Central Sumatra Basins, provide low cost options over large areas

   • Active new business initiatives with focus on acquiring production assets

     Organisation

   • Cost reductions across the company reducing monthly administration costs, Board recently approved further reduction in management remuneration, monthly G&A ~US$60,000

   • Focus on reducing joint venture operating costs seeing dividends: Seram and SBA PSC G&A reductions

   • Maintain highly skilled team, adding Indonesian advisor

     Financial

   • Prudent financial management, cash balance 31 March 2015 $US1.75mil

   • Seram project now cashflow positive, ~US$40,000 per month net at current oil price

   • Sufficient cash forecast for commitments through next 12 months; funding initiatives for new projects a key priority