29th July 2016

QUARTERLY ACTIVITES AND CASH FLOW REPORT PERIOD ENDED 30th JUNE 2016

CONTACTS: ISSUED CAPITAL:

Collin Vost 2,225,337,344 Ordinary Shares

Telephone: 08 6436 2350

Australian Securities

Directors: Exchange (ASX)

Collin Vost (Executive Chairman) Code: BKP

Justin Vost (Non Executive) (Ordinary Fully Paid Shares) Ray Chang (Non-Executive - Chinese Division)

Company Secretaries: Cash (30th June 2016)

Tim Clark $868,000

John Greeve

June 2016 Quarterly activity report

Baraka Energy & Resources Limited ("Baraka" or "The Company") (ASX:BKP) provides its quarterly activities report for the period ended 30th June 2016.

Baraka has followed through the necessary procedures in regards to renewing, what we believe, the most prospective of the 2 permits, being EP127 in the Southern Georgina Basin in The Northern Territory, Australia.

The renewal and transfer process has been completed during the month of July 2016. The necessary security bond required by the NT Department of Mines and Energy has been lodged, both joint venture partners have been removed and EP127 is now 100% in the name of Baraka.

During the quarter Baraka also received the ATO R & D tax incentive funds, some

$1.1m before fees.

A review of the historical data and reports on EP127 has been carried out and a new Map and summary has been incorporated into this quarterly. The result of this review has been very exciting and has unearthed a number of new prospects and leads of Conventional Oil & Gas within EP127 as highlighted in the maps below.

Discussions with a Canadian group in relation to a farm in has been an on, and off affair, and we will be seeking other interested parties, if they elect to stay on the sidelines.

Baraka is also in the process of reducing and winding down exposure to the Iron sands venture in the Philippines until a clearer picture of the change in the Philippine Government is apparent, and their policy on foreign investment is determined.

Baraka is more determined to seek diversification of their activities going forward and in the event a suitable project is secured for assessment, we will keep the market informed.

Conversion of additional liquid assets to provide cash reserves for any diversified activities that may be more market attractive than the oil and gas sector going forward is currently underway.

As referred to above, the Company has completed a review of the southern Georgina Basin utilizing its database of historic reports and reports from the most recent round of drilling and associated post well evaluations by international consultants. The review also incorporated publically available reports and presentations related to the Georgina Basin and potential analogues. Re-interpretation of seismic and historic well data which is limited was not

required as part of this review. This review focused on the basins conventional potential.

The figure below highlights the EP127 permit in the southern Georgina Basin along with key structural elements, including the Toko Trough and the Dulcie Syncline. Shown in blue are the numerous hydrocarbon shows around the permit, evidence of an active petroleum system being present. Also shown is the sparse seismic coverage of the permit.

Amadeus Basin

Georgina Basin

Tennant Region

Oil saturated interval

Oil extracted from plug. High gas readings up to C5 while drilling

Northern Territory

Queensland

The depocentres of the Toko Trough

& Dulcie Syncline, are the most prospective portions of the Georgina Basin. EP 127 is ideally placed to take advantage of this prospectivity.

Basin Outline Basin Fault Seismic Line

Georgina Basin

Oil staining

& Bitumen

Strong oil

shows

The Amadeus Basin is an analogue of the Georgina Basin, being of similar age, and having oil and gas production, at Meerenie and Palm Valley, respectively, as well as oil at the Surprise Field.

Oil staining

Oil staining

Oil staining

& Bitumen

Evidence of HC migration

Alice Springs Arunta Region

Amadeus Basin

0 20 40 60 80 100 km

Only seismic relevant to EP 127 shown

Review Highlights

• As a result of industry and government work done to date it is clear; that the Toko Trough and the Dulcie Syncline, are the most prospective portions of the southern Georgina Basin and that EP 127 is ideally placed to take advantage of this relatively high prospectivity area of the basin.

• The conditions for conventional petroleum accumulations appear to be present in the southern Georgina Basin. The basin contains good source rocks, which have been thermally mature and have expelled oil and gas. Hydrocarbons have migrated through various porous reservoirs and sealing formations are evident in wells. Structural and combination structural/stratigraphic traps can be expected given the basins architecture. Although current seismic data coverage is poor.

• There appears to have been a historical miss-correlation of some of the prospective zones and possible bypassed pay zones. This new correlation has significant positive implications for geologic understanding of the basin.

• Several wells previously described as "dry holes" have untested; potential bypassed oil and gas pay zones which are conventional in nature.

  A number of conventional play types have been identified in the area. The most prospective areas are likely to be where:

• Early formed structures, preferably basement related, or palaeogeographic reef-like or debris related mounds, with sealing shales or anhydrites providing both cross fault, top or draping seals;

• There has been a general lack of deformation and new faulting during the later phases of the Alice Springs Orogeny;

• Prospects are in relatively close proximity to depo-centres where favourable migration could occur form areas with prolonged oil maturity, and where;

• Suitable reservoir at a drillable depth, where porosity and permeability is either retained by early charge into the reservoir or enhanced by vugs or fractures.

The following figure represents a stratigraphic chart of the area highlighting the relationship of the lithologic formations.