30th July, 2015

ACTIVITIES REPORT JUNE 2015 QUARTER

SUMMARY Philippines

 SC 44 currently in 2 Year Technical Moratorium until 27th January, 2017.

 Studies continue aimed at determining the best well drilling and completion technology to maximise oil production.

 Proposed drilling program to be funded by farmout.

France

 3 new petroleum exploration licence applications reaching final processing stage before approval.

PHILIPPINES: SERVICE CONTRACT 44 (100%), Onshore Cebu

The Philippine Department of Energy ("DOE") approved a 2 year Technical Moratorium in order to provide sufficient time to complete studies and establish the appropriate completion technology for maximising sustainable oil production that if successful will lead to full oil field appraisal/development.
The Company continues with technical work in conjunction with industry experts who are analyzing all available technical data to identify the completion technology that will minimize sand and clay production to avert production blockage and maximize oil production rates. Preliminary results of this work indicate the preferred method to complete the new wells will be with standard, industry screens. The installation of screens as opposed to perforated casing should maximize and sustain oil production whilst retaining the reservoir sand and producing the clay fines.
Studies are also being conducted on the open-hole mud and hydraulic program designed to minimize formation damage and maintain well-bore stability.
Recent surface geological mapping has also been completed and integrated with previous work leading to a more detailed understanding of the surface geological structure. The crest of the Malolos anticline has been confidently located approximately 2.5 to 3 kilometres south-southwest of Malolos-1. With all technical data now available this is likely to be a better location for testing the Malolos surface anticline than the existing Malolos wells locations.

The forward program will either incorporate the deepening and deviating up-dip the existing Nuevo
Malolos-1 or the drilling of a new well. Planning of the well design is continuing.

Farmout

The Company still considers the best way to fund the full appraisal and development of the Malolos Oil Field is by securing a farmin partner. Farmout presentations are continuing and the Company is now pitching farmin terms that reflect the current lower oil price in order achieve a farmout.
The Malolos Oil Field still represents an attractive investment opportunity despite the recent oil price drop and the immediate effect that it has had on the oil industry Worldwide. The Malolos Oil Field has a 20.4 million barrel "Best Estimate (P50) Contingent Resource" of good quality, low sulphur crude oil that is located onshore, close to transportation in a country with excellent fiscal terms. This could result in very low development and operating costs which will leave a healthy profit margin, even at the
current low oil price.

Cross-Section: Malolos Oil Field

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Map showing Malolos, Aloguinsan and Barili Surface Anticlines

FRANCE: ST. GRIEDE (100%), Onshore Aquitaine Basin

The Company owns 100% of the St. Griede licence and it regards the oil and gas exploration potential within that licence as being exceptional. 100% ownership provides a great opportunity to create significant value for shareholders. Renewal application was lodged in May, 2013 and the renewal document currently is in the Minister's office awaiting signature. The St. Griede licence renewal is just one of many in France awaiting the Minister's final approval.
The Company planned acquisition of a new seismic survey has been approved by the French
Government. The survey is now expected to be carried out once licence renewal has been received
3

from the French Government. Interpretation of seismic survey will seek to determine at least one well location on a conventional oil and gas prospect for drilling in financial year 2015/2016.

FRANCE: NEW APPLICATIONS (100%), Onshore Aquitaine Basin

Three new licence applications targeting conventional oil and gas (Tartas, Eauze and Mirande) were submitted to the French Government over 3 years ago. These licence applications have been advertised in the European Union Gazette under normal processing procedures and these are approaching grant decisions by the French Government. The areas applied for Eauze and Mirande have been reduced for competitive applications settlement.

Vermillion and Lundin Oil

Producing Fields

Aquitaine Basin: St. Griede Licence and 3 New Licence Application Areas

Dennis Morton Patrick Sam Yue
Managing Director Director/Secretary
Phone: +61-2-8298-3682 Phone : +61-2-8298-3668 [email protected][email protected]

The information in this report has been compiled by Dennis Morton, Managing Director of Gas2Grid Limited, who graduated with First Class Honours in Geology (Macquarie University) and has 40 years' experience in the oil and gas industry.

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Appendix 5B

Rule 5.5

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013

Name of entity

GAS2GRID LIMITED

ABN Quarter ended ("current quarter")

46 112 138 780 30 June 2015

Consolidated statement of cash flows

Cash flows related to operating activities

1.1 Receipts from product sales and related debtors

1.2 Payments for (a) exploration & evaluation

(b) development

(c) production

(d) administration

1.3 Dividends received

1.4 Interest and other items of a similar nature received

1.5 Interest and other costs of finance paid

1.6 Income taxes paid

1.7 Other (GST/forex differences)

Net Operating Cash Flows

+ See chapter 19 for defined terms.

01/05/2010 Appendix 5B Page 1

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Payments to directors of the entity, associates of the directors, related entities of the entity and associates of the related entities

Current quarter

$A'000

1.23 Aggregate amount of payments to the parties included in item 1.2 ‐

1.24 Aggregate amount of loans to the parties included in item 1.10 ‐

1.25 Explanation necessary for an understanding of the transactions

Non‐cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

+ See chapter 19 for defined terms.

Appendix 5B Page 2 01/05/2013

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities

3.2 Credit standby arrangements

Funds will be drawn from the loan facilities to meet cash flows in next quarter.

Estimated cash outflows for next quarter

4.1 Exploration and evaluation

4.2 Development

4.3 Production

4.4 Administration

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.

+ See chapter 19 for defined terms.

01/05/2010 Appendix 5B Page 3

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Changes in interests in mining tenements and petroleum tenements

6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed

6.2 Interests in mining tenements and petroleum tenements acquired or increased

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

7.5 +Convertible debt securities (description)

+ See chapter 19 for defined terms.

Appendix 5B Page 4 01/05/2013

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

7.6 Changes during quarter

(a) Increases through issues (b) Decreases through securities matured, converted

7.12 Unsecured notes (totals only)

Compliance statement

1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).

2 This statement does /does not* (delete one) give a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: 30 July 2015

Company secretary

Print name: Patrick Sam Yue

+ See chapter 19 for defined terms.

01/05/2010 Appendix 5B Page 5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Notes

1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements and petroleum tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement or petroleum tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.

4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of

Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

+ See chapter 19 for defined terms.

Appendix 5B Page 6 01/05/2013