ABN 45 066 383 971

14 June 2016 PAGES (including this page): 8

ASX Market Announcements ASX Limited

Exchange Centre

Level 4, 20 Bridge Street

Sydney NSW 2000

Unmarketable Parcel Share Sale Facility

Attached please find Cue Energy Resources Limited's release with respect to the above mentioned.

Yours faithfully

Andrew M Knox

Chief Financial Officer

CUE ENERGY OVERVIEW

Cue is an Australian based oil and gas company with activities in Australia, New Zealand, Indonesia and the USA.

THE COMPANY HAS:

• Long life production

• A strong balance sheet

• An active exploration programme

  CUE ENERGY DIRECTORS

• Grant Worner (Executive Chairman)

• Koh Ban Heng

• Andrew Knight

• Brian Smith

  CUE ENERGY MANAGEMENT

• Andrew Knox (CFO)

• Jeffrey Schrull (Exp Man)

OFFICE

Level 19

357 Collins Street

Melbourne Vic 3000

CONTACT DETAILS

Tel: +613 8610 4000

Fax: +613 9614 2142

EMAIL

[email protected]

WEBSITE

www.cuenrg.com.au

LISTINGS

ASX: CUE

ADR/OTC: CUEYY

ABN 45 066 383 971

RELEASE

UNMARKETABLE PARCEL SHARE SALE FACILITY

Cue Energy Resources Ltd (Cue or the Company) is pleased to announce that it has established a share sale facility (Facility) for holders of unmarketable parcels of shares in the Company. The Facility is subject to the terms and conditions set out in the attached documents.

An unmarketable parcel of shares is a parcel of shares that has a market value of less than

$500. As at the market close on 10 June 2016 (Record Date) an unmarketable parcel of shares is any shareholding of 7,716 ordinary shares or less (Unmarketable Parcel) based on the share price of 6.48 cents.

Currently, of the Company's 4,305 shareholders, 1,639 hold an Unmarketable Parcel. The Company is providing the Facility to allow investors with small holdings to dispose of their Unmarketable Parcel who might otherwise find it difficult to sell their shares due to the small size of their holding. The Company is also looking to reduce the administrative costs associated with maintaining a large number of small shareholders on its register.

A summary of the key dates in relation to the Facility are as follows:

Attached is a copy of the letter to shareholders, information sheet and share retention form which will be dispatched to all Cue shareholders holding an Unmarketable Parcel of shares on the Record Date.

Any queries regarding this announcement should be directed to the Company on

+613 8610 4000 or email [email protected]

Andrew Knox

Company Secretary 14 June 2016

17 June 2016

Dear Shareholder,

A.B.N. 45 066 383 971

Notice of Intention to Sell Unmarketable Parcel of Shares in Cue Energy Resources Limited

We are writing to advise you that Cue Energy Resources Limited (Cue or Company) has established a share sale facility (Facility) for holders of shares in the Company (Shares) valued at less than $500 (Unmarketable Parcel) as at 7:00pm (AEST) on 10 June 2016 (Record Date).

The Facility has been established in accordance with the ASX Listing Rules and the Company's Constitution to assist holders of Unmarketable Parcels to sell their Shares. Under the Facility, the Company has appointed Melbourne stockbroker Bell Potter Securities Ltd to sell the Unmarketable Parcels on the ASX, at no cost to the shareholder. If your Shares are held in a CHESS Holding, the Company may, without further notice, move your Shares to an Issuer Sponsored Holding or a certified holding for the purposes of selling your Shares under the Facility.

Our records indicate that you held an Unmarketable Parcel of Shares on the Record Date. Unless you advise the Company that you do NOT wish to sell your Shares by 5pm on 1 August 2016, being more than six weeks from the date of this letter (Closing Date), Cue intends to sell your Shares through the Facility as soon as practicable thereafter. Payment will be sent to you following settlement of the sale. Subject to the prevailing market conditions, it is intended that the Shares be sold at the price of no less than 5.5 cents per Share, being a 15% discount to the volume weighted average sale price of the Company's Shares on ASX during the five trading days immediately preceding the Record Date.

What are your options?

You have two options - you can either sell your Shares through the Facility or choose to retain your Shares.

1. Selling your Shares

   If you wish to sell your Shares through the Facility, you do not need to take any further action. By not taking any action by the Closing Date, you acknowledge and accept that:

2. you have irrevocably appointed the Company as your agent to sell your Unmarketable Parcel through the Facility and to deal with the proceeds of the sale of the Shares in accordance with the process outlined in this letter; and

3. if your Shares are in a CHESS Holding as at the Closing Date, the Company may move those Shares to an Issuer Sponsored Holding or a certificated holding without further notice.

4. Retaining your Shares

5. If you do NOT wish to sell your Shares through the Facility, you will need to complete and return the attached Share Retention Form so that it is received by the Company by the Closing Date, being 5pm on 1 August 2016. Please read the instructions on the Share Retention Form carefully before completing it.

   Sale Proceeds

   Subject to the Corporations Act 2001 (Cth), the Company will bear all costs, including brokerage and stamp duty, associated with the sale of any Shares under the Facility. The Company will pay you the sale proceeds following settlement of all Shares through the Facility. Where direct credit details have not been provided by you, you will receive a cheque for the sale proceeds.

   Summary of Key Dates

   Please note the below proposed key dates in relation to the sale of Unmarketable Parcels under the Facility:

   Unmarketable Parcels Record Date	7:00pm (AEST) on 10 June 2016
   Unmarketable Parcels Announcement to ASX	14 June 2016
   Letters sent to shareholders holding Unmarketable Parcels	17 June 2016
   Closing Date for receipt of Share Retention Form	1 August 2016
   Estimated Unmarketable Parcels Payment Date	22 August 2016

   Important Information

   Please note that Cue makes no recommendation as to whether you should sell your Unmarketable Parcel. Please read in full the attached Information Sheet providing further information about the terms and conditions of the Facility. If you are unsure regarding which option to choose, or if you require further information regarding the financial, legal or tax consequences of participating in the Facility, you should consult your legal, financial or taxation adviser.

   If you have any questions, please contact Cue on (03) 8610 4000 between the hours of 8.30am and 5.30pm (AEST) Monday to Friday or email [email protected]

   Yours sincerely

   Andrew Knox Company Secretary

   Cue Energy Resources Limited