19 April 2016

Ground Floor 10 Outram Street West Perth WA 6005

PO Box 1282

West Perth WA 6872 Tel: +61 8 9322 8222

Fax: +61 8 9322 8244

www.jupiterenergy.com

Jupiter Energy Limited ("Jupiter" or the "Company")

QUARTERLY UPDATE ON ACTIVITIES FOR THE PERIOD TO 31 MARCH 2016

KEY POINTS:

• All producing wells have been shut in since February 2015 and will remain closed until domestic oil pricing reaches a level where oil production is cashflow positive.

  
  

• Discussions continue with relevant parties regarding the resolution of the Akkar North division of Reserves.

  
  

• Application for an Extension of the Exploration Licence submitted to Kazakh authorities for approval.

  
  

• $US330k in funding under the existing Funding Framework Agreement was provided during the Quarter by major shareholder Waterford Petroleum. A further $US155k was received on 4 April 2016.

Jupiter Energy Limited (ASX: "JPR", AIM: "JPRL" and KASE: "AU_JPRL") presents the following update on activities for the 3 month period ending 31 March 2016 (the "Quarter"). Also included in this report are details of subsequent events that have occurred up to the date of this release.

The Quarter in brief:

There were no oil sales made during the Quarter. All producing wells were shut in during February 2015, and remain shut in, due to low domestic oil prices.

Outlook for Future Oil Sales:

The Company announced on 19 February 2015 that as a result of the material reduction in world oil prices, the sales price being achieved for domestic oil in Kazakhstan had fallen to levels that made oil production from Block 31 cashflow negative.

The Company therefore decided to cease production from its producing Akkar East wells (J-51 and J-52) until the domestic oil price improved. The Company continues to monitor local pricing on an ongoing basis, and believes that production may recommence during the second half of 2016 but is unable to give any guarantee that oil production will recommence in that timeframe.

When production does recommence, the Company also plans to bring wells 19, J-58 and J-59 onto production, assuming the requisite funding is in place to build the appropriate infrastructure at the three well sites.

As already reported, the Company further restructured its Aktau operations during the 1st quarter and overall monthly operating costs have now been reduced by

~56% providing a year on year annual saving in running costs of approximately

$US2.4 million.

Funding Update:

On 30 April 2015 the Company signed a Framework Agreement with a substantial shareholder, Waterford Petroleum Limited (Waterford). Waterford agreed to provide the Company with up to $US5m over and above the $US5m Promissory Note dated October 2014 (to a total of $US10m, including accrued interest). The funds provide the Company with additional working capital via the issuance of promissory notes. Funds have been released as requested by the Company, subject to the approval by Waterford of a Care & Maintenance budget.

During the Quarter, Waterford provided $US330k under this facility. A further

$US155k was provided on 4 April 2016.

Based on management forecasts, the Company has sufficient working capital, including its access to the remaining funding under the Framework Agreement, for the first half of the 2016 calendar year. The Company continues to seek a longer term funding package that will enable the commencement of the 2016 drilling program and for on-going working capital in the 2nd half of 2016 and beyond.

West Zhetybai Trial Production Licences (wells J-58 and J-59):

In order to get the J-58 and J-59 wells ready for Trial Production, the appropriate surface production infrastructure must be put in place for both the wells. This equipment will need to be purchased and funding is not available at this time to complete the acquisition of the equipment required.

The Company will keep shareholders updated on progress.

Extension of J-50 Trial Production Licence:

The Company advised shareholders on 28 November 2014 that the application to extend the Trial Production Licence for well J-50 was being held by the Kazakh Committee of Geology pending resolution of the allocation of reserves associated with the well.

The J-50 well has been shut in since 29 December 2014 (the date at which the last Trial Production licence expired).

The underlying issue delaying the Trial Production Licence renewal is the demand by the Committee of Geology that Jupiter Energy reach agreement with its neighbour MangistauMunaiGas (MMG) over the division of reserves associated with both companies' share of the Akkar North accumulation. Jupiter Energy has been in dialogue with MMG on this issue for some time but has been unable to reach formal agreement with MMG with respect to the division of Akkar North reserves.

The Company is now seeking legal advice before formally referring the matter of resolving J-50 reserves to a higher authority within Kazakhstan in an effort to bring the matter to a conclusion and will keep shareholders updated on this situation.

Application for an Extension to the Exploration Period:

In late March 2016, the Company submitted a formal application to the Ministry of Energy for a 4 year extension to the Exploration Period on Block 31. The Company had already advised the Ministry of Energy of its intention to lodge an application for an extension to at least 29 December 2018 and the formal application has now been lodged requesting an extension through to 20 December 2020.

The submission followed the guidelines set out by the Ministry of Energy for such an application and the Company believes that it has solid grounds for the extension to be granted taking into account its drilling success in discovering the Akkar East and West Zhetybai oilfields during the current Exploration Period and the fact that it has met over 100% of its contracted work program commitments during the initial 10 year Exploration Period.

The Company understands that applications made by other companies for a similar extension have been met favourably and the Company will keep shareholders updated on progress.

The current Exploration Period runs to 29 December 2016.

Forward Plan - Operations:

The Company has been experiencing delays in progressing the development of Block 31 over the past year due to constraints on several fronts.

Subject to obtaining the requisite funding and extension to the Exploration Period, the Company plans to continue with its drilling program as soon as it is possible. At this stage, two wells are planned for 2016/2017 assuming the Exploration Extension is granted during the 2nd or 3rd quarter of 2016. The continued use of limited unsecured debt to fund the Company has been driven by the fact that the Company has been unable to get the required permission from the Ministry of Energy (the Waiver) to raise equity through the issue of new shares. The Board has been advised by convertible note and promissory note holder Waterford Petroleum and the other convertible note holders that funding via equity is their preferred structure and they continue to urge the Company to pursue the granting of a Waiver as soon as possible.

Licence Information:

As is required under ASX disclosure rules, the Company confirms that it currently holds the following licence:

Capital Structure and Finances:

As at 31 March 2016, the Company had 153,377,693 listed shares trading under the ASX ticker "JPR", the AIM ticker "JPRL" and the KASE ticker "AU_JPRL".

The Company has no options or Performance Shares, listed or unlisted, on issue.

On 30 April 2015 the Company reached agreement with substantial shareholder Waterford Petroleum to roll over the existing $US5m promissory note and all accrued interest and provide up to a further $US5m in working capital to the Company via the issue of further promissory notes. As at 31 March 2016, the total drawn down from the Waterford $US10m facility (including accrued interest) stood at $US9.37m. Based on the current Care & Maintenance budget, the remaining $US0.63m available from Waterford under the current funding facility will be sufficient to provide the Company with working capital for the 1st half of calendar year 2016.

The Company is working with its debt holders on a debt rollover package and information on this new package will be provided as soon as agreement has been reached.

Unaudited net cash reserves as at 31 March 2016 stood at approximately $A50k.