Orca Exploration Group Presentation May 2017 (incorporating 2016 results) Corporate Information

Orca Exploration Group Presentation May 2017 (incorporating 2016 results) Corporate Information

Statements and Risks This presentation contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, which are beyond Orca s control. This includes the impact of general economic conditions in the areas in which the Company operates, civil unrest, industry conditions, changes in laws and regulations and how they are interpreted and enforced, renegotiation of contracts and production sharing contracts, nationalization, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there arerisks and uncertainties associated with gas operations. Orca s results, performance and achievements can differ materially from those expressed, or implied by these forwardlooking estimates. No assurances can be given to any of theevents anticipated by the future estimatesthat may transpire or occur. If any of them do so, what benefits, including the amounts of proceeds, that Orca will derive there from. This presentation should be read in conjunction with the Company s audited financial statements and the related notes for the year ended 31 December 2015 and the unaudited statements for the quarter ended 30 September 2016. Slide 2

Orca Snapshot Market Status Listed on the Toronto venture exchange as ORC.A and ORC.B Spin out from PanOcean in 2004 (PanOcean sold to Addax in 2006 for US$1.6 billion) Currently 34.9 million shares issued (1.8 million Class A shares and 33.1 million subordinated Class B shares) Financial Revenue: 2015: US$54.1 million. 2016: US$64.7 million Cash flow from operations: 2015: US$26.5 million. 2016: US$31.9 million Working capital: 31 December 2015: US$32.5 million. 31 December 2016: US$72.0 million 29 th October 2015 closed a US$60 million financing with the International Finance Corporation; fully drawn down in February 2016 Reserves Certified Gross 2P Reserves for Songo Songo field in Tanzania on a life of field basis 31 December 2015: 760 Bcf (net to Orca 477 Bcf) Slide 3

Highlights Operations, Production and Reserves Gas industry operator with established track record and highly experienced management team and operations team with credible international track record Low cost, dynamic operator focused on teamwork and continuous improvement Development program success provides ability to significantly increase production Strong reserve base in Tanzania to allow for production to end of licence Good possibility of licence extension beyond 2026 Slide 4

Tanzanian Operations Reserves Owner and Field Operator Production Sharing Agreement (PSA) with Tanzanian Petroleum Development Corporation (TPDC) Operate and manage Songo Songo reservoir and wells along with managing upstream facilities and processing plant Recent development program has increased production capabilities to 190 MMcfd; current infrastructure constraints limit production to 102 MMcfd Built and manage downstream facilities consisting of 50 km of pipeline network, 39 industrial customers and CNG pilot project, in and around Dar es Salaam Slide 5

Tanzanian Operations Policies and Operating Standards Alignment of interests with major stakeholders: Tanzanian Government, TPDC, World Bank, International Finance Corporation and Songas High level of environmental and social standards: operating to World Bank standards Committed to belief that health and safety of employees, contractors, public and other parties, the protection of the environment, and respect for potentially effected socio-economic and cultural matters is of prime importance in the conduct of all operations carried out for or on behalf of the Company Company requires all employees, contractors and any parties performing work for or on behalf of the Company to conform to policies and standards Slide 6

Songo Songo Reservoir Natural Gas Value Chain National Natural Gas Infrastructure Project (NNGIP)at Songo Songo operated by a division of TPDC 140MMcfd Twinned Pipelines Songo Songo Field Wells Wells Gas processing plant Pipeline from Songo Songo to Dar Dar distribution system Power Ownership ORCA / TPDC / Songas Songas ORCA / TPDC Industrial Operatorship ORCA Songas ORCA Reserves ownership and markets Additional Gas Protected Gas ORCA / TPDC Songas / TPCC / Village Electrification ORCA power customers ORCA industrial customers Songas Project Ubungo power station TPCC Wazo Hill Cement Orca Exploration Group May 2017 Slide 7

Songo Songo Additional Gas Reserves 762 BCF Certified engineer s report for Songo Songo Gross Recoverable Additional Gas Reserves As at 31 December 2016 1P 2P 3P Life of licence (Bcf) 347 405 455 Life of field (Bcf) (Note 1) 642 760 886 NPV10 life of licence (US$m) 313 363 426 As at 31 December 2015 Life of licence (Bcf) Life of field (Bcf) (Note 1) NPV10 life of licence (US$m)) 1P 368 645 309 2P 417 762 357 3P 458 886 416 Note 1: There are provisions in the Tanzanian Petroleum law for licence extensions. The current licence expires in October 2026. Potential production from the Tanzanian acreage Management assesses that an average plateau of 190 MMcfd could be delivered from the existing Songo Songo main and north fields for eight years To extend the length of the plateau beyond the eight year period would require drilling of Songo Songo West prospect and a commercial discovery Slide 8

Orca Songas owner Tanzania: Deliverability (including surface constraints) rate MMcfd Well SS-3 Suspended SS-4 8 SS-5 32 SS-7 12 SS-9 34 SS-10 31 SS-11 38 SS-12 35 (TBC) SS-5 SS-7 SS-3 SS-11 Songas gas processing facilities operated by Orca Identified for connection to the NNGIP Gas Processing Plant on Songo Songo expected Q3 16 SS-12 was drilled and completed in Q1 2016 Work-overs on SS-5, SS-7 and SS-9 were successfully completed in second half of 2015 Future capital projects: Installation of refrigeration and compression Work-overs onshore wells (SS-3/SS-4/SS-10) Possible development of SS North field Orca Exploration Group SS-4 SS-12 (Nov. 2012) 190 SS-10 SS-9 May 2017 Slide 9

National Natural Gas Infrastructure Project NNGIP Pipelines construction complete 24 (25km) pipeline from Songo Songo Island to Somanga construction complete and commissioning of the pipeline is still pending 36 (490km) pipeline from Mtwara to Somanga to Dar es Salaam commissioned October 2015 The NNGIP pipeline infrastructure is rated to 792 MMcfd The pipeline system for the NNGIP has twinned the existing Songas pipeline from Songo Songo Island to Dar es Salaam. This pipeline is rated for 105 MMcfd. Gas Processing Plants construction complete Gas Processing Plant Songo Songo consists of 2 x 70 MMcfd processing trains (total capacity of 140 MMcfd); commissioning is in progress and expected completion Q3-2016. The NNGIP gas processing plant was constructed alongside the current Songas Processing facility Gas Processing Plant - Mtwara consists of 3 x 70MMcfd processing trains (total capacity of 210 MMcfd) commissioned October 2015. Slide 10

Infrastructure in Dar es Salaam: Power and Industrial Orca has financed and built a low pressure gas distribution network around Dar es Salaam Diversified customer base: 39 industrial customers including power plants, textiles, beverages and glass Network includes domestic connections, small and medium size customers and large industries No unplanned shutdown since the commissioning in 2004 First compressed natural gas pilot project (CNG) was commissioned in 2009 Slide 11

Historic Growth in Additional Gas Sales (MMCfd) 70 60 12 50 40 8 10 13 11 13 30 20 10 0 7 4 6 49 46 4 40 41 36 30 32 4 23 20 17 2 5 9 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Power Industrial Slide 12

Financial and Production Highlights US$ 000 except where otherwise stated 2016 2015 2014 2013 Revenue 64,659 54,088 56,607 53,482 Cash flow from operations 31,855 26,454 32,436 32,394 Net cash flow from operating activities 19,968 7,018 29,757 22,491 Net income (loss) 2,164 1,533 (38,301) (7,640) per share basic and diluted 0.06 0.04 (1.10) (0.22) TANESCO (power sales) bad debt provision (74,361) (61,922) (52,154) (17,073) Cash 80,895 53,797 57,659 32,588 Working capital 71,989 32,521 34,148 20,847 Capital expenditure 16,924 38,411 1,312 1,288 Long- term debt 58,399 18,599 nil 1,659 Additional Gas sold MMcfd 44.5 47.4 53.2 61.5 Weighted average Additional Gas Price US$/mcf 4.73 4.49 4.76 4.66 Operatingnetback US$/mcf 3.26 2.57 2.22 2.20 Slide 13

CSR in Tanzania: Background and Impact Scholarships and Direct Community Support on Songo Songo Island High achieving students from Songo-Songo Island were awarded scholarships in 2014. Currently there are 38 students in this program pursuing secondary education in Dar es Salaam Orca is supporting football teams, maintenance of school buildings, construction of teacher accommodation and training centre, supply of fresh water and electricity, medical dispensary English Language Program Program in 2015 covered all of the 28 secondary schools in the Kilwa district. 56 Teachers took part in a Company sponsored training program, more than 4,380 students benefited from the program Program has been progressively implemented over the last 4 years in the Kilwa District Program will be taken by more than 7,000 students in 2016 Health Support Orca funded the completion of a community medical dispensary in Nangurukuru area in Kilwa district. The dispensary was supplied with equipment and has been treating patients since December 2014 Orca is funded the construction of housing for health workers to enable 24hr service from the dispensary Orca is currently funding the completion of a maternity ward and the rehabilitation of a post-natal and labor ward in Kilwa Support to Community Schools Orca has provided necessary civil works material to the Kilwa District Council for construction of science laboratories for secondary schools Orca has donated 800 desks to the Kilwa District schools enabling more than 2,400 students to study in a conducive environment Slide 14

The Future Diversification outside Tanzania for high impact opportunities to complement current cash generating business Slide 15