( i3 Energy, i3, the Company or the Group ) Intention to float on AIM

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1 NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT. This announcement is an advertisement and not an admission document or a prospectus. It does not constitute or form part of, and should not be construed as, an offer to sell or issue, or a solicitation of any offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. Investors should not subscribe for or purchase any securities referred to in this announcement except on the basis of information in the admission document (the Admission Document ) to be published by i3 Energy plc, in due course in connection with the proposed admission of the ordinary shares in the capital of the Company (the Ordinary Shares ) to trading on the AIM market of the London Stock Exchange. Copies of the Admission Document will, following publication, be available during normal business hours on any day (except Saturdays, Sundays and public holidays) from the registered office of the Company and on the Company s website at i3.energy. 10 May 2017 i3 Energy Plc ( i3 Energy, i3, the Company or the Group ) Intention to float on AIM i3 Energy, an independent oil and gas company with assets and operations in the UK, is pleased to announce its intention to seek admission of its shares to the AIM Market of the London Stock Exchange ( AIM ). Application will be made for admission of the Company s Ordinary Shares to trading on AIM ( Admission ) and Admission is expected to commence in May 2017 under the TIDM i3e. In conjunction with Admission, the Company intends to raise up to US$50 million by way of a placing of new Ordinary Shares (the Placing ). Highlights: i3 Energy s first asset is the Liberator Licence Area (1), a high quality, low cost, oil development opportunity, targeting first oil in Q at 7,300 barrels of oil equivalent per day ( BOEPD ) o The Company acquired a 100% operated interest in Licence P.1987, Block 13/23d, which contains the Liberator oil field and is adjacent to offtake infrastructure, from Dana Petroleum in December 2016 o 51 million barrels of oil equivalent ( MMBOE ) initially in place (2) o 16 MMBOE recoverable of total 2C contingent resources (2) o Supply chain engaged for 2017/18 drilling programme of up to two back-to-back development wells Heads of Terms agreed with Diamond Offshore (two rig slots) and Baker Hughes (well services) Well management being provided by Petrofac SPD Parties have agreed in principle partial deferral of capex beyond first oil o Material upside potential from Liberator field extensions and adjacent acreage capture o Proceeds of the Placing expected to fully fund the Company to first oil from the Liberator field i3 Energy has a growth strategy to focus on the development of discoveries located close to existing infrastructure and the exploitation of producing fields, whilst maintaining limited exploration exposure o Leverage Directors networks to identify and focus on high impact discoveries o Adhere to quality reserves discipline, secure production, low-risk development, apply buy-low commercial practice i3 Energy is led by Neill Carson (CEO), previously a co-founder of Ithaca Energy, and has a

2 strong technical and operational team with extensive track records of building effective development and production operation organisations and managing safe and successful field developments as Operator i3 Energy s Board has extensive experience in the oil and gas industry and a track record of creating and realising shareholder value through both organic growth and corporate activity o Graham Heath is co-founder of i3, CFO and Executive Director, formerly working alongside Mr. Carson at Iona Energy as VP Corporate Development and Interim CFO o David Knox joins the Board as Non-Executive Chairman, formerly Chief Executive Officer and Managing Director of Santos Limited o Majid Shafiq joins the Board as Non-Executive Director, formerly Managing Director of FirstEnergy Capital LLP and Tristone and currently CEO of Argentil Capital Partners o Richard Ames joins the Board as Non-Executive Director, Former Vice President of TNK-BP, Sidanco and Amoco i3 Energy is being advised by WH Ireland (Nominated Adviser and Joint Broker), Cantor Fitzgerald (Joint Broker) and GMP FirstEnergy (Joint Broker). 1 The Liberator Licence Area ( LLA ) is comprised of the Group s interests in sections of the Liberator Main and Liberator North East hydrocarbon accumulations. In addition to the acreage under licence the LLA structures extend into adjacent blocks to form the Liberator Field Cluster ( LFC ), which i3 expects to be awarded to the Company at the time of Field Development Plan approval. 2 Based on Gaffney, Cline & Associates Competent Person s Report as at 31 January 2017 for the Liberator Field Cluster. Neill Carson, Chief Executive Officer of i3 Energy said: I am delighted to announce our intention to float i3 Energy on AIM. We have a strong technical team with significant North Sea expertise and an excellent track record of delivering development projects in the area. We are hugely excited by the opportunity we see in the UK North Sea and are confident that we have the right team and strategy to bring the high-quality Liberator Field Cluster into development and grow the business through our targeted acquisition strategy. Graham Heath, Chief Financial Officer of i3 Energy commented: i3 is at an exciting stage of growth and proceeds from our listing will be used to fund the development of the Liberator Field, a high return, low cost discovery targeting first oil in Q at a rate of 7,300 barrels of oil equivalent per day. We are delighted with the support we have received to date from our existing investors. We see this as a strong endorsement of our asset and team and look forward to welcoming our new investors once i3 lists on AIM. For further information, please contact: i3 Energy Limited Neill Carson (CEO) / Graham Heath (CFO) c/o Camarco Tel: +44 (0) WH Ireland Limited (Nomad and Joint Broker) James Joyce, James Bavister Tel: +44 (0) Cantor Fitzgerald Europe (Joint Broker) Sarah Wharry Tel: +44 (0) GMP FirstEnergy (Joint Broker)

3 Jonathan Wright, David van Erp Tel: +44 (0) Camarco Georgia Edmonds / Billy Clegg / James Crothers Tel: +44 (0) Notes to Editors i3 Energy is an oil and gas development company initially focused on the North Sea. The Company s first asset is the Liberator Licence Area, which contains an oil discovery discovered by well 13/23d-8 located in License P.1987, Block 13/23d in which it has a 100% operated interest. The Company s strategy is to focus on the development of discoveries located close to existing infrastructure and the exploitation of producing fields, whilst maintaining limited exploration exposure. i3 Energy has a strong management team with a track record of delivery and was co-founded by Neill Carson, previously co-founder, President and COO of Ithaca Energy, where he built an asset portfolio including multiple developments. Liberator Field Cluster On 28 December 2016 the Company s wholly owned subsidiary, i3 Energy North Sea Limited, acquired Licence P.1987 from Dana Petroleum (E&P) Limited ( Dana ), in Block 13/23d in the North Sea. The licence comprises the Group s interests in sections of the Liberator Main and Liberator North East ( NE ) hydrocarbon accumulations ( Liberator Licence Area or LLA ). Dana successfully drilled the 13/23d-8 well on the LLA in 2013 and discovered oil at approximately 5,200 ft total vertical depth sub-sea (TVDSS). i3 intends to develop the LLA by way of a two well programme and anticipates producing first oil in Q Block 13/23d is located in the Blake Field ( Blake Field ) and Bleo Holm Floating Production Storage and Offloading ( FPSO ) catchment area of the Outer Moray Firth within the UK North Sea. The Group is in discussions with the Blake Field partners ( Blake Partners ) regarding i3 Energy using the existing spare capacity of the Blake Field infrastructure and Bleo Holm FPSO Vessel ( Blake Infrastructure ). The Directors believe the Company will reach an agreement with the Blake Partners in due course, as the asset and development options fit strongly within the UK Oil and Gas Authority s initiative and legislation to maximise the economic recovery of reserves through the utilisation of existing infrastructure. Access to the Blake Infrastructure would significantly reduce costs and accelerate the delivery of first hydrocarbons relative to a standalone development of the LLA, although there can be no certainty that this agreement will be forthcoming. In addition to the acreage under licence, the Liberator Main and Liberator NE structures extend into adjacent blocks which the Company expects to capture within its proposed Field Development Plan area. Additionally, the Liberator North West ( NW ) structure lies to the northwest of Liberator Main and is currently not licenced to any party. The combination of the Liberator Main, Liberator NE and Liberator NW hydrocarbon accumulations form the Liberator Field Cluster ( LFC ). Gaffney, Cline & Associates have determined that the LFC is an existing discovery (13/23d-8) and the Company intends to use the proceeds of the Placing to develop the LFC. The Group is currently in discussions with the UK Oil and Gas Authority ( OGA ) regarding the Group s Field Development Plan ( FDP ) which includes the prospect of extending i3 Energy s field development area to include the entirety of the LFC. The Directors have factored these extensions into the Group s plan for development of the full LFC in light of the recently published guidelines for Maximising Economic Recovery in the UK, and they believe the OGA will approve the FDP in due course, although there can be no certainty that these extensions will be granted at that time, or at all. Use of proceeds The net proceeds from the Placing are currently intended to be utilised as follows: 2017 Liberator work programme

4 Working capital Pre-development Project Management Key Strengths The Company s management team and Board have substantial international experience in the oil and gas industry i3 has a strong technical team, with combined experience of approximately 200 years, led by its Chief Executive Officer, Neill Carson, a co-founder of Ithaca Energy. Members of the senior management team have significant financial, geoscience and operational expertise and have demonstrated their ability to identify, acquire and evaluate highly productive E&P portfolios. Breadth of technical, operational and commercial expertise is complemented by the Board which has extensive experience in the oil and gas industry and a track record of creating and realising shareholder value through both organic growth and corporate activity. David Knox, formerly Chief Executive Officer and Managing Director of Santos Limited joins the Board as Non-Executive Chairman, and Majid Shafiq, CEO of Argentil Capital Partners and Richard Ames, Former Vice President of TNK-BP, Sidanco and Amoco join as Non- Executive Directors. The Company benefits from an international commercial and operational network i3 has developed an international network of high quality industry commercial representatives who provide the Company with a wide range of skills. A collaborative approach within this network has supported the Company in attaining a strong position for the identification, acquisition, and development of potential opportunities. This will continue to form a core part of the Company s strategy. Significant near-term cash flow potential The proposed FDP contemplates wells to be drilled from and tied back to the existing Blake Infrastructure and Bleo Holm FPSO Vessel, significantly reducing the required development capital expenditure when compared to stand-alone development solutions. The use of this existing infrastructure remains subject to agreement with the Blake Partners. Low country risk i3 operates in the UK which is an established petroleum region and one of the largest oil and gas producers in Europe with significant infrastructure in place. The regulatory regime in the UK is considered by the Directors to be both predictable and streamlined and the political situation is very stable with the UK ranking high on global transparency rankings. The UK North Sea hosts a wide range of oil and gas companies from small independent startups to super-majors and there is an active market for buying and selling oil and gas assets and companies in the region. Board and Management i3 has assembled a highly experienced and qualified team of technical, operational and administrative oil & gas professionals. The Aberdeen-based team has collectively accumulated approximately 200 years of direct operating experience through employment in a wide range of super major, large independent and start-up enterprises. Various members of the management team have extensive track records of building effective development and production operation organisations. Whilst approved in December 2016 as an operator in the UKCS, the organisation will be strengthened during the course of 2017 through the addition of personnel with extensive North Sea development and operational experience. i3 s core staff is supplemented by the insourcing of experienced consultants and through strategic alliances with key service providers. Current operations are run from i3 s UK office located in Aberdeen, Scotland.

5 Neill A. Carson, Chief Executive Officer Mr Carson has 31 years of management and international project experience in the oil and gas industry. On completion of his Bachelors (with First Class Honours) and Masters degrees in the geosciences from Ulster University and Birmingham University respectively, he joined Amoco in During his 14 years with Amoco he was responsible for numerous exploration and production projects within the UKCS. His international career widened through exploration management positions for BP Amoco in the Netherlands, Bolivia and Pakistan. As Performance Unit Leader for BP Pakistan, Mr Carson was responsible for the delivery and growth of approximately 12,000 boe/day and capital budgets in excess of $50m. Through his career with BP Amoco, Mr Carson executed growth plans through successful oil and gas discoveries, and the development and management of commercial portfolios. He contributed as a select member of a targeted team to BP s world-wide new venture screening initiative in In early 2004, Mr Carson co-founded Ithaca Energy Inc. ( Ithaca ) where he served as its President and a Director from April 2004 and acted as Chief Operating Officer until late While at Ithaca, Mr Carson was responsible for asset acquisitions, all aspects of operations and safety, general corporate strategy, and the drilling of four successful oil wells. Across his 4 years with Ithaca, the portfolio grew to 39 MMboe of 2P reserves and was on plan to deliver 8,000 boe/day of production. Mr Carson co-founded Iona Energy Inc ( Iona ) in late 2007 where he served as Chief Executive Officer until his departure in mid-2014 to form i3. Responsible for all aspects of corporate strategy and portfolio development, he grew Iona to 40 MMboe of 2P reserves and saw peak production of 6,700 boe/day. Graham A. Heath, Chief Financial Officer Prior to co-founding i3 in late 2014, Mr Heath served as VP Corporate Development and later as Interim CFO at Iona Energy from December 2010 alongside Mr Carson. During his time at Iona, Mr Heath worked with the senior management team to build the company from infancy to 40 MMboe of 2P reserves and production above 6,000 boe/day, listing the company on the Toronto Venture Exchange, and structuring equity, debt and derivative financings in excess of $670 million. As VP Corporate Development he was a proactive engager of all external stakeholders and as Interim CFO led a finance and administration team that expanded internal financial controls while improving quarter-on-quarter quality and delivery of financial reporting. Before joining Iona, Mr Heath s 14-year career focused on energy-related tech start-ups and consulting within Alberta s Oil and Gas Industry. Between 1998 and 2010, Mr Heath consulted to Colt Engineering, PanCanadian Petroleum, EnCana Corporate and Cenovus Energy. From 2002 to 2006, Mr Heath was co-founder and VP of strategic Development for The CO2 Hub Inc supply and demand for its use in enhanced oil recovery. Mr Heath holds a Bachelor of Commerce from the University of Calgary. David Knox, Non-Executive Chairman Mr David Knox, BSc (Hons) Mech Eng, MBA, FIEAust, FTSE, served as the Chief Executive Officer and Managing Director of Santos Limited from 2008 to 2015, after joining the company in 2007 as the Executive Vice President of Growth Businesses. Mr Knox has global experience in the Petroleum Industry. Joining Santos in 2007, he was responsible for growth of new businesses including Geoscience and New Ventures, Indonesia and other strategic projects. Prior to Santos, Mr Knox served as the Managing Director of BP Exploration and Production in Australasia, having previously held management and engineering roles at BP, ARCO and Shell across Australia, United Kingdom, Pakistan, United States, the Netherlands and Norway. He served as a Director of Santos (JPDA 91-12) Pty Ltd., Santos (N.T.) Pty. Ltd. and Santos Finance Ltd, in addition to serving as Director of Santos Limited and Santos (bbf) Pty Ltd until November He was also an Executive Member of the Australian Petroleum Industry Peak Body, and the Australian Petroleum Production and Exploration Association (APPEA). Originally from Edinburgh, Scotland, Mr Knox holds a first class honours degree in Mechanical Engineering from Edinburgh University and a Masters of Business Administration from the University of Strathclyde. Mr Knox has also been a director on the board of the Botanic Gardens and State Herbarium in South Australia, and a Fellow of the Australian Institute of Mechanical Engineering. Majid Shafiq, Non-Executive Director Mr Majid Shafiq has 25 years of technical and investment banking experience focused on the global

6 E&P sector. Prior to joining Argentil Capital Partners as CEO in 2015, Majid spent twelve years in energy investment banking advising on asset level acquisitions and divestments, corporate M&A and equity financing for the private and public, small to mid-cap oil and gas sector. During that time he worked for Waterous and Co, Tristone Capital Ltd and latterly with FirstEnergy Capital LLP as Managing Director, Corporate Finance. Prior to his investment banking career, he worked for Mobil Oil Corporation for 13 years in various petroleum engineering and commercial roles in the UK and the Netherlands. Majid holds a Bachelors degree in Nuclear Engineering from Manchester University, a Masters degree in Petroleum Engineering from Heriot-Watt University and an MBA from London Business School. Richard Ames, Non-Executive Director Mr Richard Ames brings to the i3 Board 34 years of broad range experience in the oil and gas industry with senior executive roles in full-cycle oil and gas exploration and production, information technology and oil and gas services. He has held several Vice President positions in TNK-BP, Sidanco, and Amoco in Russia & Kazakhstan, where he was responsible for government liaison, the implementation of business strategies and the management of exploration and new venture projects. He has recently held Board and Advisory Board of Director positions in Iona, Accenture Russia, the Kiawah Conservancy, and DataSpace. Mr Ames graduated from Duke University with a Bachelor of Science degree in Geology, and from the University of Georgia with a Master of Science in Geology. He joined Amoco in 1981 and worked as a geologist responsible for reserve definition in several international petroleum basins including the North Sea. IMPORTANT NOTICE The contents of this announcement, which have been prepared and issued by, and are the sole responsibility of the Company and the directors of the Company, have been approved by W H Ireland Limited ( WHI ) solely for the purposes of section 21(2)(b) of the Financial Services and Markets Act 2000 ( FSMA ). In the United Kingdom, this announcement is only addressed to, and directed at: (i) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the Order ); or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order or to those persons to whom it can otherwise lawfully be distributed (each a Relevant Person ). This announcement must not be acted or relied upon by persons other than Relevant Persons. In member states of the European Economic Area other than the United Kingdom, this announcement is directed only at "qualified investors" within the meaning of Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC as amended, including by EU Directive 2010/73/EU to the extent implemented in the relevant member state), and will be engaged in only with such persons. Other persons should not rely or act upon this announcement or any of its contents. This announcement is for information purposes only and does not constitute or form part of any offer or invitation to underwrite, sell or issue, or any solicitation of any offer to purchase or subscribe for, any Ordinary shares or other securities in the capital of the Company, nor shall it (or any part of it), or the fact of its distribution, form the basis of, or be relied on in connection with or act as any inducement to enter into, any contract whatsoever relating to any Ordinary shares or securities. Neither this announcement nor any copy of it may be taken or transmitted, directly or indirectly, into the United States, Australia, Canada, Japan or South Africa or to any persons in any of those jurisdictions or any other jurisdiction where to do so would constitute a violation of the relevant securities laws of such jurisdiction. This announcement does not contain or constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any shares or other securities to any person in the United States, Australia, Canada, Japan or South Africa or in any other jurisdiction to whom or in which such offer or solicitation is unlawful, nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, or act as an inducement to enter into any contract or commitment whatsoever. The Placing and the distribution of this announcement and other information in connection with the Placing and Admission in certain jurisdictions may be

7 restricted by law, and persons into whose possession this announcement, or any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. The Ordinary Shares have not been and will not be registered under the US Securities Act of 1933, as amended (the Securities Act ) or with any regulatory authority or under applicable securities laws of any state or other jurisdiction of the United States, and may not be offered, sold, resold, pledged, delivered, distributed or transferred, directly or indirectly, into or within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and otherwise in compliance with any applicable state and local securities laws. There will be no public offering of securities in the United States or elsewhere. The Ordinary Shares have not been and will not be registered under the applicable securities laws of Australia, Canada, Japan or South Africa and, subject to certain exceptions, may not be offered or sold, directly or indirectly, in Australia, Canada, Japan or South Africa. There will be no public offering of securities in Australia, Canada, Japan or South Africa or elsewhere. Any subscription for or purchase of Ordinary Shares in the proposed Placing should be made solely on the basis of the information contained in the final Admission Document to be issued by the Company in connection with the Placing and Admission. None of the Company, WHI or any of their respective affiliates, their respective directors, officers, partners, employees, advisers or agents or advisers or any other person, accepts any responsibility or liability whatsoever for, or makes any representation or warranty, express or implied, as to the truth, accuracy, completeness or fairness of the information or opinions contained in, this announcement (or whether any information has been omitted from this announcement), or of any other information relating to the Company, its subsidiaries or associated companies, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available, or for any loss howsoever arising from any use of this announcement or its contents, or otherwise arising in connection therewith. No reliance may or should be placed by any person for any purpose whatsoever on the information contained in this announcement or on its completeness, accuracy or fairness. The information in this announcement is subject to change and does not purport to be full or complete. Neither the Company nor WHI undertakes to provide the recipient of this announcement with any additional information, or to update this announcement or to correct any inaccuracies, and the distribution of this announcement shall not be deemed to be any form of commitment on the part of the Company to proceed with the Placing or any transaction or arrangement referred to herein. This announcement has not been approved by any competent regulatory authority. WHI, which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting exclusively for the Company and no one else in connection with the Placing and Admission, and will not regard any other person (whether or not a recipient of this announcement) as a client in relation to the Placing and Admission, and will not be responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in relation to the Placing, Admission or any transaction, arrangements or other matters referred to in this announcement. Apart from the responsibilities and liabilities, if any, which may be imposed on WHI by FSMA or the regulatory regime established thereunder, WHI does not accept any responsibility whatsoever and makes no representation or warranty, express or implied, in relation to the contents of this announcement, including its accuracy or completeness, or for any other statement made or purported to be made by it or on behalf of it, the Company, the Directors or any other person, in connection with Admission or the Placing, and nothing in this announcement shall be relied upon as a promise or representation in this respect, whether as to the past or the future. WHI accordingly disclaims all and any liability whatsoever, whether arising in tort, contract or otherwise (save as referred to above), which it might otherwise have in respect of this announcement or any such statement. The timetable, including date of Admission, may be influenced by a range of factors such as market conditions. There is no guarantee that the Admission Document will be published or that the Placing and Admission will occur, and you should not base your financial decisions on the Company's intentions in relation to the Placing and Admission at this stage. Acquiring investments to which this announcement relates may expose an investor to a significant risk of losing the whole investment

8 amount. The value of shares can decrease as well as increase. This announcement does not constitute a recommendation concerning the Placing. Potential investors should consult a professional advisor as to the suitability of the investment for the person concerned. Certain figures in this announcement, including financial information, have been subject to rounding adjustments. Accordingly, in certain instances, the sum or percentage change of the numbers contained in this announcement may not conform exactly to the total figure given. Forward-looking statements All statements other than statements of historical fact, contained in this document constitute forward looking statements. In some cases forward looking statements can be identified by terms such as may, intend, might, will, should, could, would, believe, forecast, anticipate, expect, estimate, predict, project, potential, or the negative of these terms, and similar expressions. Such forward looking statements are based on assumptions and estimates and involve risks, uncertainties and other factors which may cause the actual results, financial condition, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Except as required by the AIM Rules for Companies, the Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this document to reflect any change in the Group s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. New factors may emerge from time to time that could cause the Company s business not to develop as it expects, and it is not possible for the Company to predict all such factors. Given these uncertainties, prospective investors are cautioned not to place any undue reliance on such forward-looking statements except as required by law.