31 July 2015

QUARTERLY ACTIVITIES AND CASH FLOW REPORT PERIOD ENDED 30 June 2015

Baraka Energy & Resources Limited

Contacts:

Collin Vost

Telephone: 08 6436 2350

Directors:

Collin Vost (Executive Chairman) Justin Vost (Non Executive)

Ray Chang (Non-Executive-Chinese Division)

Company Secretary:

Patrick O'Neill

Issued Capital:

2,225,337,344 Ordinary Shares

Australian Securities Exchange (ASX)

Code: BKP (Ordinary Shares Fully Paid)

Cash (30 June 2015):

$0.34 million

June 2015 Quarter Activities Report

Baraka Energy & Resources Limited ("Baraka" or "the Company") (ASX:BKP) provides its quarterly activities report for the period ended 30 June 2015.

In early March 2015, after extensive discussions and communications and together with the support of Petrofrontier Corp (TSX-V:PFC)(Petrofrontier) and Statoil Australia Theta B.V. (Statoil), Baraka applied for the renewal of Exploration Permit EP128, being the most northerly of the two permits Baraka has an interest in, in the Georgina Basin, Northern Territory, Australia.

Directors of Baraka travelled to Darwin and met with the Department of Mines and Energy to discuss Baraka pursuing renewal of EP128 in its own right and were provided a very courteous and supportive audience.

As a result, Baraka appointed an experienced law firm and a tenement administrator in Darwin to assist in the renewal application of the permit in the name of Baraka as the 100% holder. This application has been lodged with supporting documentation.

Subject to the success of the renewal application with Department of Mines and Energy, the Company will make further announcements regarding its intentions on this permit going forward. Baraka has, at the request of the NT Mines and Energy department, provided additional supporting information in July for the renewal application and has not been informed as to the timing of any approval period of the licence.

Based on both Petrofrontier and Statoil's announcements and continued discussions with Baraka, it is expected that Baraka will also lodge an application for renewal of EP127 in its own right as 100% permit holder in due course. These discussions and communications have commenced. EP127 does not expire until 13 December 2015 and once again, all commitments have been met to that date.

Baraka has been approached by a Canadian group that has for some time expressed an interest in pursuing the conventional targets within Baraka's permits, and the Company would expect to pursue that interest if and when both permits are renewed.

Whilst the world's energy and resource companies are suffering low oil, iron ore, coal and other commodity prices, history shows that these are only a temporary hiccup in the world's growth and will result in the same recovery of prices and demand as every other recession or commodity cycle in the past 40 years.

The board of Baraka would like to once again thank Petrofrontier and Statoil for their courage in committing substantial funds to pursue the basins unconventional prospects, regardless of results during their programs.

Baraka has post 30 June received some $890,000 in R & D tax offset to add to its current cash resources. Subject to successful applications Baraka could also receive substantial additional funds before the end of the current calendar year. Baraka is also in the process of converting some $600,000 of current assets into cash prior to the end of this calendar year.

Baraka will, in addition to pursuing the renewal of the Georgina Basin oil and gas permits, be seeking farm in partners and continue to assess a number of other projects and ventures for the benefit of its shareholders, including its other current assets and seek to create cash generating opportunities as soon as realistically possible.

Baraka continues to be debt free, operating on extremely low overhead expenses, negligible liabilities, and no expenditures requirements on its permits for the 2015 calendar year.

Appendix

Appendix 5B

The Appendix 5B for the quarter ended 30 June 2015 is attached.

Forward-Looking Statements

This press release may contain forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Baraka, including, without limitation, statements pertaining to management's future plans and operations. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Any forward-looking statements are made as of the date of this release and Baraka does not assume any obligation to update or revise them to reflect new events or circumstances.

Appendix 5B Mining exploration entity quarterly report

Appendix 5B

Mining exploration entity quarterly report Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10. Name of entity

BARAKA ENERGY & RESOURCES LIMITED

Rule 5.3

ABN Quarter ended ("current quarter")
80 112 893 491 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 (provide details if material)

Net Operating Cash Flows

+ See chapter 19 for defined terms.

30/9/2001 1

Appendix 5B

Mining exploration entity quarterly report

Payments to directors of the entity and associates of the directors

Payments to 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 76
1.24 Aggregate amount of loans to the parties included in item 1.10 -

1.25 Explanation necessary for an understanding of the transactions
Directors fee, serviced office, bookkeeping and consulting fees.

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

Financing facilities available

Add notes as necessary for an understanding of the position.

Appendix 5B Mining exploration entity quarterly report

3.1 Loan facilities
3.2 Credit standby arrangements

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.

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed
6.2 Interests in mining tenements acquired or increased

+ See chapter 19 for defined terms.

30/9/2001 3

Appendix 5B

Mining exploration entity quarterly report

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.

7.12 Unsecured notes

(totals only)

+ See chapter 19 for defined terms.

Appendix 5B Page

Appendix 5B Mining exploration entity quarterly report

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 4).

2 This statement does /does not* (delete one) give a true and fair view of the matters disclosed. Sign here:
(Company secretary) Date: 31 July 2015
Print name: Patrick J O'Neill
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 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, 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 1022: Accounting for Extractive Industries and AASB

1026: Statement of Cash Flows apply to this report.

5 Accounting Standards ASX will accept, for example, the use of International Accounting 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.

30/9/2001 5

Appendix 5B

Mining exploration entity quarterly report

Baraka Energy & Resources Ltd

Schedule of Tenements as at 30 June 2015

1 including a 75% undivided working interest in the 75kms2 around the Elkedra-7 well on

EP128.

+ See chapter 19 for defined terms.

Appendix 5B Page