RAWSON RESOURCES LIMITED ABN 69 082 752 985

and its controlled entities

ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2016

CONTENTS

Page

Chairman's letter 1

Activity report 3

Directors' report 6

Auditor's independence declaration 14

Independent auditor's report 15

Directors' declaration 17

Annual financial statements

Consolidated statement of profit and loss and other comprehensive income 18

Consolidated statement of financial position 19

Consolidated statement of changes in equity 20

Consolidated statement of cash flows 21

Notes to the financial statements 22

Additional securities exchange information 54

Corporate governance statement 62

Rawson Resources Limited Annual Report for the Year Ended 30 June 2016

Chairman's Letter

Chairman's Letter

Dear Shareholder,

The last twelve months has seen Rawson successfully pursue its strategy of acquiring high growth, high impact exploration assets in Papua New Guinea to complement its existing asset portfolio in Australia in a considered and deliberate manner.

Papua New Guinea

The award and purchase of two Petroleum Prospecting Licences (PPL 549 and PPL 391) in PNG have been made with the goal of securing an exploration position in‐country that has excellent potential to attract investment as commodity prices improve.

These licences represent part of what we believe to be the next petroleum frontiers in PNG and will provide significant material value to the company going forward.

Sampling of the oil at Matapau (PPL 391) is under way and in the near future we hope to have provided a market update. I myself have been to the wells and was extremely excited to see the wells providing oil to the local community.

On the back of the licence awards in PNG, Rawson secured a capital investment of $750,000 from a group of resident PNG investors. These funds will allow us to progress our early stage exploration efforts in PNG and provide a measure of confidence to us that we are securing assets in the right place.

Three additional licence applications remain under evaluation by the Department of Petroleum and Energy and the Minister in PNG. The Cape Vogel offshore licence application (APPL 560) provides Rawson with a world class potential LNG proposition. We are now seeing large companies moving into exploration offshore PNG and we are excited that these recognised explorers are placing an increasing value on the area through their presence. The northern basin licence

application (APPL 594) builds on our existing acreage position and provides additional exploration opportunity from any discovery or development in the northern basin. APPL 550, located in the gas condensate fairway of the Western Province provides exposure to a more mature region. Its proximity to the Elevala and Stanley discoveries provides balance to our portfolio in PNG.

Udacha

The first gas sales revenue from Udacha is helping to underpin Rawson's strategic exploration position in PNG. During the year, the Udacha JV successfully completed the workover, hydraulic stimulation and production tie‐back of Udacha‐1, substantially under budget, with production commencing in July 2016.

Attractive exploration upside remains in the Udacha licence with the anticipated low risk Lowry‐1 target estimated at 7 Bcf raw gas recoverable. It is expected that Lowry‐1 will be drilled in the first quarter of 2017. By forecasting modest commodity price increases, Lowry‐1 has the ability to provide income that fully supports Rawson exploration plans.

Otway Blocks

Rawson successfully sought and was granted suspension of licences PEL 154 and PEL 155, in the onshore Otway Basin. The licences have been suspended for 12 months which gives the Company time for the East Coast gas demand forecast shortages to play out and drive the value of the licences. In the short term these are very low cost to hold, providing conventional and unconventional prospectivity.

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Rawson Resources Limited Annual Report for the Year Ended 30 June 2016

Chairman's Letter

As a company we continue to maintain fiscal discipline and scrutinise our expenditure carefully, constraining cash outflows where at all possible. This will continue to ensure Rawson maximises shareholder value in from its activities.

On behalf of the board, management and myself, we would like to thank all shareholders for your continued support.

We look forward to an exciting 12 months as Rawson strives to cement its position in PNG by exposing value and unlocking petroleum potential in our licences and to become self‐sufficient on the back of further success in Udacha with Lowry‐1.

Reserves and Resources Statement

Table 1. Petroleum reserves, reported as 100% of field area.

Table 2. Prospective resources, reported as 100% of field/prospect area.

Allister Richardson Executive Chairman 30 September 2016

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