Melbana Energy Limited Annual Report 2022

Melbana Energy Annual Report 2022

b Melbana Energy Limited Annual Report 2022 ABN 43 066 447 952

1 Melbana Energy Limited Annual Report 2022 Melbana Energy is an Australian ASX listed, independent oil and gas company that has a portfolio of attractive exploration, appraisal and development stage opportunities in Cuba and Australia. Contents 2 Chairman’s Letter 4 At a Glance 5 Highlights 6 Board of Directors 8 Directors’ Report 22 Auditor’s Independence Declaration 23 Consolidated Statement of Profit or Loss and Other Comprehensive Income 24 Consolidated Statement of Financial Position 25 Consolidated Statement of Changes in Equity 26 Consolidated Statement of Cash Flows 27 Notes to the Consolidated Financial Statements 50 Directors’ Declaration 51 Independent Auditor’s Report 56 Shareholder Information 60 Corporate Directory

2 Melbana Energy Limited Annual Report 2022 Chairman’s Letter Andrew Purcell | Chairman “ I am pleased to present to you the 2022 Annual Report for Melbana Energy. By any measure it has been an exciting and successful year for your Company.” The two-well exploration program that we commenced in our Block 9 contract area of onshore Cuba in the first quarter of the reporting period quickly validated our exploration thesis when the first well, Alameda-1, encountered an extensive interval of oil shows less than two weeks after drilling commenced. This became a recurring theme with numerous extensive intervals of highly pressured moveable hydrocarbons encountered in several geologically independent sections. These intercepts were later independently estimated to represent a total volume of 6.4 billion barrels of oil in place with a Prospective Resource of 362 million barrels of oil1. It marked an extraordinary and welcome result from one exploration well and forces us to rethink our original estimate of 14.8 billion barrels of oil in place in Block 9 as a whole. The other interesting feature of the oil encountered during the drilling of Alameda-1 was how highly pressured the reservoirs could be. This is desirable, of course, as it is often correlated with good reservoir production characteristics, but the extent of the pressures Alameda-1 encountered in certain sections was considerably higher than what was prognosed from data available from prior offset wells. This presented the drilling teamwith challenges that they were commendably and safely able to overcome, but the result was that our opportunistic desire to repurpose our exploration well to conduct quality and flow tests on the reservoirs encountered proved unviable. As such, we are looking forward to returning to the Alameda-1 pad to commence appraisal work, using amended well designs appropriate to the conditions we now know exist there. Following the completion of Alameda-1, we transferred the rig and supporting services to the next well pad to commence drilling the Zapato-1 exploration well in the fourth quarter of the reporting period. This well is aiming to test an expected carbonate structure below volcanics, independently estimated to contain 114 million barrels of Prospective Resource1. Your Company’s future in Cuba has been assured for at least the medium term – as evidenced by the amount of future work required to appraise and then (if warranted) produce the oil encountered during the drilling of the Alameda-1 well. Your Company is well positioned and financed to undertake this work, particularly given the expertise of our partner – the national oil company of Angola – whose financial support and technical advice has been of paramount importance to our achieving the results we have to date in Cuba. We similarly appreciate the counsel and support of the national oil company of Cuba, CUPET, who on numerous occasions acts more like a partner than a regulator in helping us to meet our goals. 1 100% unrisked mean estimate independent assessment by McDaniels & Associates

3 Melbana Energy Limited Annual Report 2022 During the second quarter of the reporting period, Melbana also completed the sale of its permit WA-488-P to the Australian subsidiary of a US oil company which is entering Australia to drill the exciting Beehive prospect contained in that permit area. Your Company received an initial payment of US$7.5 million in consideration for the sale and is entitled to further payments totalling US$5.0million, subject to the purchaser making certain future elections with respect to the permit. In addition, we are entitled to receive a payment of US$10million for each 25 million barrels of oil (or equivalent) that may be produced and sold from this permit area. The Beehive prospect has been independently assessed to possibly contain a Prospective Resource of as much as 1.4 billion barrels of oil equivalent2, so a successful exploration well there could be very material for your Company. We have no exposure to the cost of the drilling of this well, which is required to occur before August 2023. The identification then technical support for the validity of the Beehive exploration thesis is testament to the quality of our geoscientists, who identified and championed this new play type in Australia for many years and were rewarded for their perseverance and vision by having a large international player make a country entry to drill it. In a similar vein, we were awarded the AC/P70 permit located offshore north-western Australia during the third quarter of the reporting period. This is a valuable addition to our portfolio of exploration permits, given it contains the undeveloped Vesta-1 oil discovery that was subsequently appraised to contain a gas cap. The complex nature of the project gives a technically competent junior explorer like Melbana the opportunity to identify new play types, then use its track record to attract large, well-funded, partners to test its exploration theses. I must also make special mention of the efforts of our people, both in Australia and Cuba, whose commitment to our drilling operations in Cuba have been instrumental to the success we have had there. We have a lot of highquality staff, for whom the many technical and operational challenges found in any drilling operation (often in the middle of the night for one side of the world or the other) – are dealt with calmly and professionally until the best possible outcome is achieved. Finally, I wish to thank my fellow directors for their constant availability for advice. Their experience and perspective is always greatly appreciated, particularly whenever we get too close to an issue and become in danger of losing sight of the wood for the trees. I am proud of the teamwe have built and look forward to building on the experience gained by the group to commercialise the incredible opportunity we have demonstrated to exist in Cuba for the benefit of all of our stakeholders. Andrew Purcell Chairman 10Oct 2022 2 100% unrisked high estimate independent assessment by McDaniel & Associates

Tassie Shoal Methanol LNG Projects AC/P70 AC/P50 AC/P51 WA-488-P NT/P87 WA-544-P 4 Melbana Energy Limited Annual Report 2022 At a Glance Australia

Cuba Block 9 5 Melbana Energy Limited Annual Report 2022 Highlights Australia Cuba Cuba Permit sold to EOG Australia for: – Up-front payment of US$7.5m – Contingent further payments totalling US$5m – Production Bonus Payments of US$10m for every 25m barrels of oil in the event of commercial development. Strategically, the sale provided Melbana with a material cash boost to fund its ongoing domestic projects. The group also retains a 100% interest in the adjacent permit areas WA-544-P and NTP87, where geoscientific studies were advanced over the year. Drilling of a well by EOG Australia is planned for 2023, subject to rig availability. Post-sale, the project offers material revenue upside for Melbana with no exposure to any future drilling or permit costs. Farmout of a 70% interest in Block 9 to Sonangol, the national oil company of Angola, in consideration for Sonangol paying the Company $5 million for its past costs and agreeing to meet 85% of the costs of a two well exploration drilling program: – The first exploration well, Alameda-1, encountered three significant and independent oil reservoirs with moveable hydrocarbons and often accompanied by significant formation pressures. – These reservoirs were later independently assessed to contain 6.4 billion barrels of oil in place for a Prospective Resource of 362 million barrels of oil. The three significant and independent oil reservoirs encountered thus far provide Melbana with an exciting opportunity to prove up a world class oil and gas asset. Successful application for exploration permit AC/P70, located in the Territory of Ashmore and Cartier Islands. AC/P70 contains the undeveloped Vesta-1 oil discovery (drilled 2005) and is a complex field uniquely suited Melbana, a junior explorer which has the technical capacity to bring new solutions and bring on the right partners for development. Sale of WA-488-P Exploration success in Block 9 AC/P70 granted

6 Melbana Energy Limited Annual Report 2022 Andrew Purcell Executive Chairman Andrew Purcell founded the Lawndale Group (formerly Teknix Capital) in Hong Kong over 15 years ago, a company specialising in the development and management of projects in emerging markets across heavy engineering, petrochemical, resources and infrastructure sectors. Prior to this, Mr Purcell spent 12 years working in investment banking across the region for Macquarie Bank and then for Credit Suisse. Mr Purcell also has significant experience as a public company director, both in Australia and across Asia. Peter Stickland Non-Executive Director Peter Stickland has over 30 years’ global experience in oil and gas exploration. Mr Stickland was CEO and subsequently Managing Director of the Company from 2014 until January 2018 and then became a non-executive director. Previously, Mr Stickland was CEO and subsequently Managing Director of Tap Oil Limited (ASX: TAP) from 2008 until late 2010 during which time he oversaw the evolution of the company into a South East Asia/Australia focused E&P company. Prior to joining Tap Oil, Mr Stickland had a successful career with BHP Billiton including a range of technical and management roles. Mr Stickland is also a life member of the Australian PetroleumProduction and Exploration Association Limited (APPEA). Michael Sandy Non-Executive Director Michael Sandy is a geologist with over 40 years’ experience in the resources industry – mostly focused on oil and gas. In the early 1990s he was Technical Manager of Oil Search Limited, based in Port Moresby, PNG. Mr. Sandy was involved in establishing Novus Petroleum Ltd and preparing that company for its $186m IPO in April 1995. Over 10 years, he held various senior management roles with Novus including manager of assets in Australia, Asia, the Middle East and the USA and was involved in numerous acquisitions and divestments. He co-managed the defence effort in 2004 when Novus was taken over by Medco Energi. Subsequently, Mr Sandy has been the principal of energy consultancy company Sandy Associates P/L, has set up and taken companies to IPO and has built extensive experience on the boards of listed and unlisted companies, including Tap Oil, Burleson Energy and Hot Rock. Board of Directors See pages 13 to 14 for further information.

Directors’ Report The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the ‘Consolidated Entity’) consisting of Melbana Energy Limited (referred to hereafter as the ‘Company’ or ‘parent entity’) and the entities it controlled at the end of, or during, the year ended 30 June 2022. 7 Melbana Energy Limited Annual Report 2022

Directors The following persons were Directors of Melbana Energy Limited during the whole of the financial year and up to the date of this report, unless otherwise stated: Andrew Purcell (Executive Chairman) Michael Sandy (Non-Executive Director) Peter Stickland (Non-Executive Director) Directors’ Report Principal activities The principal activities of the Consolidated Entity during the year were oil and gas exploration in Cuba and Australia together with development concepts for the Tassie Shoal Methanol and LNG Project. Dividends There were no dividends paid or declared during the current or previous financial year. Review of operations International Operations Cuba - Block 9 (Melbana 30%) The current two well exploration program the Company is executing in Block 9 is testing four separate targets with a combined pre-drill Prospective Resource of 236 million barrels of oil (Best Estimate, 100% basis)1. Alameda-1 Drilling of the first of the two well program commenced on 13 September 2021 with the spudding of Alameda-1. Oil shows and elevated gas readings started to be encountered starting almost immediately below the casing point and continuing until about 1,842 metres. Wire logging results from this section produced an estimate of 48 net metres of potential oil and gas pay, excluding about 290metres where poor hole conditions prevented viable logs from being acquired. Casing was then set at this depth and this first formation containing moveable hydrocarbons was subsequently designated as Amistad. InMarch 2022, independent expert McDaniel & Associates estimated that the reservoirs located in this Amistad section contained 2.5 billion barrels of oil in place for a combined 119 million barrels of Prospective Resource (100% share, unrisked mean estimate basis)1, a significantly larger volume than was prognosed to occur at this depth. 1 This estimate should be read with reference to the footnote “Notes regarding Contingent and Prospective resource estimates” on page 21 8 Melbana Energy Limited Annual Report 2022

Drilling ahead then continued in November 2021, with some interruptions whilst awaiting the delivery of certain materials, to 2,592 mMD2, at which depth the decision was made to log the section and set casing. Oil and gas shows were subsequently encountered from 2,865 mMD to 2,971 mMD before drilling ahead through an effective seal into the N sheet (subsequently redesignated Alameda), at which point strong oil shows were observed at surface along with elevated gas readings. Drilling ahead continued in early February 2022 to 3,590mMD (3,420mTVD)3, at which depth a decision was made to call section total depth to preserve the oil found in this section. Wireline logging of this section showed extensive natural fracturing and high down hole pressures across a gross reservoir interval of 560mMD (495 mTVD) for an estimated net pay of 100mMD (88 mTVD). Drilling of the next section continued in early March 2022 into the I (now Marti) section, with strong oil shows and free oil and gas again being encountered at surface within the drilling mud system. Drilling paused at 3,769 mMD when a high-pressure zone was encountered, resulting in a strong influx of hydrocarbons into the wellbore. Once well control was re-established, drilling continued through continuous excellent oil shows to a total depth of 3,916 mMD when a further significant influx of oil and gas entered the well bore at higher pressure. Total depth was called at 3,916 mMD on 17 March 2022, despite not having reached the bottom of the potential reservoir section, as this was considered the prudent course of action. Logging operations were then run over the almost 300mMD gross interval encountered in this Marti section, resulting in an estimate of approximately 52 mTVD of net pay in aggregate across a logged gross reservoir interval of about 240 mTVD. An attempt to flow test this Marti section a little higher than the highest pressure zone encountered at the bottom of the well bore was commenced in mid-April 2022 but was unsuccessful due to further strong influx of oil into the well bore. A subsequent attempt to similarly repurpose an exploration well into a testing environment to conduct preliminary tests in the higher Alameda (previously N) structure proved similarly unsuccessful due to the high mud weight that had to be built up to contain the highly energised oil interval encountered in the deeper Marti structure. Alameda-1 was safely suspended in late April 2022 with the intention being to return to it to conduct properly planned flow tests following the completion of Zapato-1. Zapato-1 Zapato-1, the second exploration well of the two well Block 9 exploration drilling program, was spudded on 21 May 2022, Cuban time. Zapato-1 was located near the historic Motembo oil field (which was discovered in the late 19th century and reportedly contained at surface a very light oil of 50 – 64.5º API) and was designed to target a single formation estimated to commence at a depth of about 2,650 metres. The planned total depth for the well is 3,150metres. As of the end of the reporting period, drilling had progressed to a depth of 1,666 metres and was making slow but steady progress through the hard volcanics prognosed to exist above the target carbonate section. Block 9 ForwardWork Program The Company plans to appraise the oil-bearing intervals encountered whilst drilling Alameda-1 – the three units encountered in the upper sheet (Amistad units) and the two additional independent deeper oilbearing intervals (Alameda andMarti reservoirs) – commencing immediately upon completion of Zapato-1 (and depending on the results of that well and the receipt of necessary partner and regulatory approvals). Concept studies for the development of Block 9, in general, have also commenced. Cuba - Santa Cruz (Melbana 100%, subject to receiving final regulatory approvals) No material progress was made during the reporting period towards the receipt of final regulatory approval for the binding contract Melbana has entered into for the Santa Cruz oil field. The Santa Cruz oil field has produced at least 7.4 million barrels from 18 wells since its discovery in 2004. The Company notes that Cuba is subject to various sanctions imposed on it unilaterally by the United States of America (US). Although these sanctions are intended to only apply to US citizens and corporations, their indirect scope is effectively larger thereby requiring the Company to allow for their impact on operations in Cuba. Australian Operations WA-488-P (Melbana contingent cash and royalty interest) The sale of permit WA-488-P to EOG Resources Australia BlockWA-488 Pty Ltd (EOG Australia) was approved by the National Offshore Petroleum Titles Administrator on 22 November 2021. The Company announced on 24 November 2021 that it had received fromEOG Australia an initial payment of US$7.5 million in consideration for the sale. The Company is entitled to further payments fromEOG Australia totalling US$5.0million (subject to the purchaser making certain future elections with regards to the permit) and a royalty of US$10.0million for each 25 million barrels of oil equivalent in the event oil is produced from the permit area should the exploration well be a commercial success. Drilling of a well on the Beehive Prospect is planned for 2023, subject to rig availability and approval of the environmental programwhich EOG Australia has submitted to the regulator. The Company has no exposure to any future costs associated with this permit, including to the cost of drilling the exploration well. WA-544-P and NT/P87 (Melbana 100%) In November 2020 the Company was awarded petroleum exploration permits as a result of applications it had made under the Australian Government’s 2019 Offshore PetroleumExploration Acreage Release. These permits, designated as WA-544-P and NT/P87, were awarded for an initial period of six years each 2 metres, measured depth 3 metres, total vertical depth 9 Melbana Energy Limited Annual Report 2022

with work commitments consisting of reprocessing and various studies in their primary term (years 1 to 3). The Company may withdraw from the permits prior to entering their secondary terms which contain more material expenditure commitments. These permits lie adjacent toWA488-P and allow the Company to build on the knowledge it has gained in that permit area to pursue other leads in this expanded area. The Company has a 100% interest in these permit areas, which contain the undeveloped oil discoveries Turtle and Barnett. The Company is currently conducting geoscientific studies over these permit areas. AC/P50, AC/P51 (Melbana contingent cash and royalty interest) Exploration permits AC/P50 and AC/P51 are located in the Vulcan sub-basin. The Company sold its 55% interest in these permits to joint venture partner Rouge Rock Pty Ltd (Rouge Rock) in 2018, givingMelbana an interest in any future farmout or sale of the permits. Directors’ Report continued Subsidiaries of Australia’s Santos and Malaysia’s SapuraOMV (Purchasers) acquired AC/P50 inMay 2021 and Melbana received an upfront cash payment of about $397,000. Melbana retains an entitlement to receive a 10% share of any future royalty Rouge Rock would receive for production that occurs from this permit area during a defined period. The Purchasers have also acquired the right to acquire AC/P51. Should this right be exercised, Melbana would be entitled to receive similar cash consideration and contingent royalties. AC/P70 (Melbana 100%) On 16 February 2022, the Company announced that it had been granted petroleum exploration permit AC/P70, located in the Territory of Ashmore and Cartier Islands, for an initial period of six years. The Company made this application for this permit under the Australian Government’s 2020 Offshore PetroleumExploration Acreage Release. Petroleum exploration permit AC/P70 contains the undeveloped Vesta-1 oil discovery drilled in 2005. The Vesta-2 appraisal well drilled in 2007 identified a gas cap. This complex field is an attractive opportunity to a junior explorer like the Company with the technical capability and track record of identifying new play types and attracting large, wellfunded, partners to test its exploration theses – often by overturning conventional thinking. Tassie Shoals (Melbana 100%) The Company has Australian Government environmental approvals to construct, install and operate two stand-alone world scale 1.75Mtpa methanol plants - collectively referred to as the Tassie Shoal Methanol Project - and a single 3 Mtpa LNG plant - known as the Tassie Shoal LNG Project - on Tassie Shoal, an area of shallow water in the Australian waters of the Timor Sea approximately 275 km north-west of Darwin, Northern Territory. These Environmental Approvals are valid until 2052. These projects uniquely provide a development option for discovered but undeveloped gas resources in the region. Progress for these projects is dependent on securing access to a proximate gas supply on suitable commercial terms. No material progress was made in this regard during the reporting period but ongoing and increased activity in the energy sector in offshore northern Australia is closely monitored by the Company to identify possible opportunities to progress the development of this project. Results for the year The net profit after tax of the Consolidated Entity for the financial year was $6,333,812 (2021: net loss after tax of $1,398,123). The profit for the year was mainly due to the sale of permit WA-488-P of $10,391,856 offset by administration costs of $4,002,458 (2021: $2,472,101). Overall profit for the year increased by $7,730,935 compared to the 2021 financial year. During the year, the Consolidated Entity incurred net operating cash outflows of $2,119,543 (2021: outflows of $2,000,361), net investing cash inflows of $3,264,709 (2021: inflows of $11,598,463) and net financing cash inflows of $23,830,840 (2021: outflows of $125,997). 10 Melbana Energy Limited Annual Report 2022

The successful drilling and commercialisation of any oil and gas discoveries in Cuban and Australian exploration permits and/ or the development/sale of the Consolidated Entity’s methanol and LNG Projects could ultimately lead to the establishment of a profitable business or result in a profit to the Company if an asset sale occurs. While the Consolidated Entity is in the exploration/appraisal stage of drilling for hydrocarbons in its offshore Australian exploration permit and overseas acreage and in the project development phase for its other offshore Australian interests, funding will be provided by asset sales, equity capital raised from the issue of new shares and/or farm out or joint development arrangements with other companies. Review of financial position The net assets increased by $30,082,682 to $37,172,262 at 30 June 2022 (30 June 2021: $7,089,580). During the year, the Consolidated Entity capitalised $9,532,768 (2021: $1,315,080) of exploration expenditure, mainly in relation to Block 9 in Cuba. The main determinants of the Consolidated Entity’s financial condition were: – Profit after tax of $6,332,812 (2021: loss of $1,398,123); – increase in share capital amounting to $22,875,044 (2021: $nil). The working capital position as at 30 June 2022 of the Consolidated Entity results in an excess of current assets over current liabilities of $26,450,132 (30 June 2021: $2,389,609). The cash balances, including term deposits, as at 30 June 2022 were $35,570,347 (2021: $10,683,656). Corporate The Consolidated Entity’s future prospects are centred on its ability to secure quality exploration, development and producing opportunities and seeking to maximise the value to shareholders of its current portfolio, identifying and securing additional value-accretive projects, and/or undertaking a corporate transaction. Funding for the coming Financial Year is sufficient to meet the Company’s forecast exploration and field development commitments however the Consolidated Entity may raise additional funding either through farm-in/sale and/or capital injection to advance its projects. In the event that the Consolidated Entity cannot meet its share of work program commitments, permits may need to be surrendered. Significant changes in the state of affairs On 20 August 2021 the Company received the approval of the National Offshore Petroleum Titles Administrator for a 20-month suspension of the permit conditions in respect of the Permit Year 3 work program (with a corresponding 20-month extension of the permit term) for its exploration permit WA-488-P. Receipt of this approval satisfied the final Condition Precedent of the Company’s sale of WA-488-P to EOG Australia and the Company soon thereafter received a payment of US$7,500,000 as the Initial Purchase Price. The terms of the sale agreement entitle the Company to receive Contingent Additional Payments totalling US$5.0million, subject to certain future elections being made in regard to theWA-488-P permit area. In addition, Melbana is entitled to payments of US$10.0million per 25 million barrels of oil equivalent (boe) that may be sold and delivered fromwithin theWA-488-P permit area in future. In the first quarter of the reporting period, the Company divested its holdings inMetgasco Limited (ASX: MEL) and Byron Energy Limited (ASX: BYE) on market for cash consideration. On 7 September 2021 the Company announced the results of its underwritten pro-rata nonrenounceable entitlements offer at $0.02 per share with the Company issuing a total of 356,438,678 fully paid ordinary shares and 546,658,017 options expiring on 10 September 2021, raising a total of $7,128,774 (gross proceeds before costs). On 13 September 2021 exploration drilling commenced in Block 9 PSC onshore Cuba. Multiple significant hydrocarbon bearing zones were intercepted during the drilling of Alameda-1. On 16 February 2022 the Company was awarded AC/P70, located offshore Australia in the Territory of Ashmore and Cartier Islands, for an initial period of six years. The permit contains the undeveloped Vesta-1 oil discovery drilled in 2005 and the Vesta-2 appraisal well drilled in 2007 identified a gas cap. The Company has a well commitment in the primary term (year three). On 16March 2022 the Company completed an institutional placement raising a total of $15,000,000 before transaction costs via a placement of 125 million fully paid ordinary shares at a price of $0.12 per share. The placement was supported by high quality institutional investors in Australia and abroad. On 21 May 2022, Zapato-1, the second exploration well of the two well Block 9 exploration drilling program commenced drilling and is still drilling ahead to the target formation as of the reporting date. During the year the Company has issued 86,899,695 fully paid ordinary shares and received proceeds of $3,041,489 before transaction costs from conversion of its listed options. As at 30 June 2022, there remained 459,758,321 Options unexercised. If all of the remaining options are converted, the Company would receive additional funds of $16,091,541. 11 Melbana Energy Limited Annual Report 2022

Resource upgrades During the reporting period the Company made a significant announcement pertaining to the three oil reservoirs encountered by the Alameda-1 exploration well in the Amistad structure in its Block 9 Production Sharing Contract (Block 9 PSC) area, onshore Cuba. The resource estimate for these reservoirs were independently assessed4 to contain a combined (all of the following volumes are quoted on a 100% share unrisked mean estimate basis): – 2.5 billion barrels of oil in place – 119 million barrels of Prospective Resource1 Subsequent to the end of the reporting period, the Company released the independent resource assessment for the Alameda reservoir, the second of three encountered by the Alameda-1 exploration well in Block 9 PSC: – 2.3 billion barrels of oil in place – 148 million barrels of Prospective Resource1 Also subsequent to the end of the reporting period, the Company released the independent resource assessment for the Marti Reservoir, the third and final reservoir encountered by the Alameda-1 exploration well in Block 9 PSC: – 1.5 billion barrels of oil in place – 95 million barrels of Prospective Resource1 The three reservoirs encountered by the Alameda-1 exploration well have now been independently assessed to contain a combined: – 6.3 billion barrels of oil in place – 362 million barrels of Prospective Resource1 There were no other significant changes in the state of affairs of the Consolidated Entity during the financial year. Directors’ Report continued Matters subsequent to the end of the financial year On 8 July 2022, independent expert McDaniel & Associates estimated the Alameda (previously, N) reservoir to contain 2.3 billion barrels of oil in place for a Prospective Resource of 148 million barrels1. On 1 August 2022, independent expert McDaniel & Associates estimated the Marti (previously, I) reservoir to contain 1.5 billion barrels of oil in place for a Prospective Resource of 95 million barrels1. All of the volumes quoted above are on a 100% share unrisked mean estimate basis. Drilling operations are continuing in Zapato-1, the second exploration well in Block 9, Cuba. As of the reporting date the well had reached 2,354 mMD with a pre-drill prognosis for the top of the target structure estimated to begin at about 2,650mMD. As of the reporting date, the Company has received approximately $15.9 million from exercise of listed options (ASX: MAYO) and issued 452,983,946 fully paid ordinary shares. No other matter or circumstance have arisen since 30 June 2022 that has significantly affected, or may significantly affect the Consolidated Entity’s operations, the results of those operations, or the Consolidated Entity’s state of affairs in future financial years. Likely developments and expected results of operations The Consolidated Entity will continue to pursue its interests in: – Block 9 PSC in Cuba in partnership with Sonangol. Exploration drilling operations are proceeding. The Company is preparing plans for the appraisal of the moveable hydrocarbons encountered whilst drilling its first well (Alameda-1) and will finalise these upon completion of the drilling of Zapato-1. – EOG Australia is making preparations for the drilling of its Beehive-1 exploration well inWA-488-P in the Joseph Bonaparte Gulf in northern Australia which may begin in the following reporting period. The Consolidated Entity has no exposure to the cost of the drilling of this well or to the permit but is entitled to receive cash and royalty interests contingent on future elections made by EOG Australia inWA-488-P and commercial success from the drilling of the exploration well. – Its other permit areas and licences. Health Safety and Environmental regulation The Consolidated Entity holds participating interests in a number of oil and gas areas. The various authorities granting such tenements require the licence holder to comply with the terms of the grant of the licence and all directions given to it under those terms of the licence. Your Board of Directors believe that all workplace injuries are avoidable. Policies and procedures are in place to ensure employees and contractors conduct all activities in a safe manner. Melbana has adopted an environmental, health and safety policy and conducts its operations in accordance with international best practice, where reasonably practicable. There have been no known breaches of any tenement conditions, one incident resulting in lost time due to injury (a second incident resulting in lost time occurred after the end of the reporting period) and zero spills within the Company’s operations during the year ended 30 June 2022. 4 Independent certifier McDaniel and Associates 12 Melbana Energy Limited Annual Report 2022

Information on Directors Name: Andrew Purcell Title: Executive Chairman Qualifications: B Eng; MBA Experience and expertise: Andrew Purcell founded the Lawndale Group (formerly Teknix Capital) in Hong Kong over 15 years ago, a company specialising in the development and management of projects in emerging markets across heavy engineering, petrochemical, resources and infrastructure sectors. Prior to this, Mr Purcell spent 12 years working in investment banking across the region for Macquarie Bank and then for Credit Suisse. Mr Purcell also has significant experience as a public company director, both in Australia and across Asia. Other current directorships: Chairman of AJ Lucas Group Limited (ASX: AJL) Former directorships (last three years): None Special responsibilities: Member of the Remuneration and Nomination Committee and a member of the Audit and Risk Committee Interests in securities: 243,436,931 Fully Paid Ordinary Shares Name: Peter Stickland Title: Non-Executive Director Qualifications: BSc, Hons (Geology), GDipAppFin (Finsia), GAICD Experience and expertise: Peter Stickland has over 30 years' global experience in oil and gas exploration. Mr Stickland was CEO and subsequently Managing Director of the Company from 2014 until January 2018 and then became a non-executive director. Previously, Mr Stickland was CEO and subsequently Managing Director of Tap Oil Limited (ASX: TAP) from 2008 until late 2010 during which time he oversaw the evolution of the company into a South East Asia/Australia focused E&P company. Prior to joining Tap Oil, Mr Stickland had a successful career with BHP Billiton including a range of technical and management roles. Mr Stickland is also a life member of the Australian PetroleumProduction and Exploration Association Limited (APPEA). Other current directorships: None Former directorships (last three years): Talon Limited (ASX: TPD) (until October 2020) XCD Energy Limited (ASX: XCD) (until June 2020) Special responsibilities: Chairman of Reserves Committee, Chairman of the Remuneration and Nomination Committee and a member of the Audit and Risk Committee Interests in securities: 15,427,419 fully paid ordinary shares 13 Melbana Energy Limited Annual Report 2022

Name: Michael Sandy Title: Non-Executive Director (served as InterimCEO from 22 July 2019 until 20 February 2020) Qualifications: BSCHons (Geology), MAICD Experience and expertise: Michael Sandy is a geologist with over 40 years' experience in the resources industry – mostly focused on oil and gas. In the early 1990s he was Technical Manager of Oil Search Limited, based in Port Moresby, PNG. Mr. Sandy was involved in establishing Novus Petroleum Ltd and preparing that company for its $186m IPO in April 1995. Over 10 years, he held various senior management roles with Novus including manager of assets in Australia, Asia, the Middle East and the USA and was involved in numerous acquisitions and divestments. He co-managed the defence effort in 2004 when Novus was taken over by Medco Energi. Subsequently, Mr Sandy has been the principal of energy consultancy company Sandy Associates P/L, has set up and taken companies to IPO and has built extensive experience on the boards of listed and unlisted companies, including Tap Oil, Burleson Energy and Hot Rock. Other current directorships: None Former directorships (last three years): MEC Resources Limited (Chairman) (ASX: MMR) Special responsibilities: Chairman of the Audit and Risk Committee, member of the Remuneration and Nomination Committee and a member of Reserves Committee Interests in securities: 5,300,000 fully paid ordinary shares Other current directorships quoted above are current directorships for listed entities only and excludes directorships of all other types of entities, unless otherwise stated. Former directorships (last three years) quoted above are directorships held in the last three years for listed entities only and excludes directorships of all other types of entities, unless otherwise stated. Company Secretary Theo Renard, CASA, MAICD, ACG (CS), Bcompt Hons – appointed 6 July 2021 Theo Renard is a Chartered Accountant and has over 21 years’ experience in credit and relationship banking in the fields of commercial and investment banking throughout South Africa, Asia and Australia. He is an experienced Chief Financial Officer and Company Secretary within retail, manufacturing, processing and resources industries in Australia, Africa, Asia and the Subcontinent. He is an experienced director, having served on boards of overseas listed companies as director and was Chairman of a conveyor manufacturer, and is currently a director of an ASX listed company. Meetings of Directors The number of meetings of the Company’s Board of Directors (Board) and of each Board committee held during the year ended 30 June 2022, and the number of meetings attended by each Director were: Full Board Reserves Committee Audit and Risk Committee Attended Held Attended Held Attended Held Andrew Purcell 7 7 – 2 2 2 Michael Sandy 7 7 2 2 2 2 Peter Stickland 7 7 2 2 2 2 Held: represents the number of meetings held during the time the Director held office or was a member of the relevant committee. The Company held two Remuneration and Nomination Committee meetings during the 2022 financial year which were attended by Michael Sandy and Peter Stickland to consider the remuneration terms to be offered to the Executive Chairman. Directors’ Report continued 14 Melbana Energy Limited Annual Report 2022

The directors are pleased to present the 2022 remuneration report which sets out remuneration information for the Company’s Non-Executive Directors, Executive Director and key management personnel. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including all directors. The remuneration report is set out under the following main headings: – Principles used to determine the nature and amount of remuneration – Details of remuneration – Service agreements – Share-based compensation – Additional information – Additional disclosures relating to key management personnel Principles used to determine the nature and amount of remuneration The objective of the Consolidated Entity’s executive reward framework is to ensure reward for performance is competitive and appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives and the creation of value for shareholders, and it is considered to conform to the market best practices for the delivery of reward. The Board ensures that executive reward satisfies the following key criteria for good reward governance practices: – competitiveness and reasonableness – acceptability to shareholders – performance linkage / alignment of executive compensation – transparency The Remuneration and Nomination Committee is responsible for determining and reviewing remuneration arrangements for its directors and executives. The performance of the Consolidated Entity depends on the quality of its directors and executives. The remuneration philosophy is to attract, motivate and retain high performance and high-quality personnel. The Remuneration and Nomination Committee has structured an executive remuneration framework that is market competitive and complementary to the reward strategy of the Consolidated Entity. The reward framework is designed to align executive reward to shareholders’ interests. The Board have considered that it should seek to enhance shareholders’ interests by: – having profit as a core component of plan design – focusing on sustained growth in shareholder wealth, consisting of dividends and growth in share price, and delivering constant or increasing return on assets as well as focusing the executive on key non-financial drivers of value – attracting and retaining high calibre executives The performance of the Consolidated Entity depends upon the quality of its directors and executives. To prosper, the Consolidated Entity must attract, motivate and retain highly skilled directors and executives. To this end, the Consolidated Entity embodies the following principles in its remuneration framework: – Offer competitive remuneration benchmarked against the external market to attract high calibre executives; – Where appropriate, provide executive rewards linked to shareholder value; and – Encourage Non-Executive Directors to hold shares in the Company. In accordance with best practice corporate governance, the structure of non-executive director and executive director remuneration is separate. Remuneration Report (audited) 15 Melbana Energy Limited Annual Report 2022

Non-Executive Directors’ remuneration Fees and payments to Non-Executive Directors reflect the demands and responsibilities of their role. Non-Executive Directors’ fees and payments are reviewed annually by the Remuneration and Nomination Committee. The Remuneration and Nomination Committee receives independent market data when undertaking this annual review process. The Remuneration and Nomination Committee may, from time to time, receive advice from independent remuneration consultants to ensure Non-Executive Directors’ fees and payments are appropriate and in line with the market. The Remuneration and Nomination Committee did not use the services of a remuneration consultant during the year. The Chairman’s fees are determined independently to the fees of other Non-Executive Directors based on comparative roles in the external market. The Chairman is not present at any discussions relating to the determination of his own remuneration. The 4th edition of the Corporate Governance Principles and Recommendations released by the ASX Corporate Governance Council (Council) specifies that it is generally acceptable for Non-Executive Directors to receive securities as part of their remuneration to align their interest with the interests of other security holders, however Non-Executive Directors should not receive performance-based remuneration as it may lead to bias in their decision making and compromise their objectivity. Generally Non-Executive directors do not receive performance-based bonuses and/or other incentives and prior shareholder approval is required to participate in any issue of equity. The Board has determined that Non-Executive Directors will be entitled to charge the Consolidated Entity at a rate of $1,200 per day unless that non-executive director is serving in the capacity of Technical Director in which case the rate would be $2,000 per day. These rates apply for any work performed in excess of five days per calendar month and subject to receiving the prior approval of the Executive Chairman. The Constitution and the ASX listing rules specify that the aggregate remuneration of Non-Executive Directors shall be determined from time to time by a general meeting. The most recent determination was at the Annual General Meeting held on 18 November 2010, where the shareholders approved a maximum annual aggregate remuneration of $500,000. The combined payment to all Non-Executive Directors does not exceed this aggregate amount. Executive remuneration The Consolidated Entity aims to reward executives based on their position and responsibility, with a level and mix of remuneration which has both fixed and variable components. The executive remuneration and reward framework has the following components: – Fixed remuneration – Variable remuneration consisting of Short-Term Incentive (STI) and Long-Term Incentive (LTI). The combination of these comprises the executive’s total remuneration. The mix between fixed and variable remuneration is established for the executive by the Remuneration and Nomination Committee. Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed annually by the Nomination and Remuneration Committee based on individual and business unit performance, the overall performance of the Consolidated Entity and comparable market remunerations. Executives may receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle benefits) where it does not create any additional costs to the Consolidated Entity and provides additional value to the executive. Fixed remuneration is reviewed annually by the Remuneration and Nomination Committee and, where appropriate, external advice on policies and practices. As noted above, the Remuneration and Nomination Committee has access to external advice independent of management. The STI program is designed to align the targets of the business units with the performance hurdles of executives. STI payments are granted to executives based on specific annual targets and key performance indicators (KPI) being achieved. KPIs include share price performance, safe execution of the Company’s projects, business development and organisational management. The LTI comprised of options and/or performance rights awarded to executives and vest conditional upon the recipient meeting service objectives and share price hurdles. Consolidated Entity performance and link to remuneration Remuneration for certain executives granted options or performance rights is linked to the performance of the Consolidated Entity, as an improvement in the Company’s share price will correspondingly increase the benefits to the executive. This will align the interests of the executive and the shareholders. Refer to the section “Additional information” below for details of the earnings and share price movements for the last five years. Remuneration Report (audited) continued 16 Melbana Energy Limited Annual Report 2022

Details of remuneration Amounts of remuneration Details of the remuneration of key management personnel of the Consolidated Entity are set out in the following tables. Directors: – Andrew Purcell - Executive Chairman – Michael Sandy - Non-Executive Director – Peter Stickland - Non-Executive Technical Director Post Employment Short-term benefits Benefits Long-termBenefits 30-Jun-22 Salary and fees $ Cash Bonus $ Superannuation $ Long Service Leave $ Equity Settled $ Total $ Non-Executive Directors: Michael Sandy 75,409 – – – – 75,409 Peter Stickland 126,125 – – – – 126,125 Executive Director: Andrew Purcell 357,100 – – – 636,2415 993,341 558,634 0 0 0 636,241 1,194,875 Post Employment Short-term benefits Benefits Long-termBenefits 30-Jun-21 Salary and fees $ Cash Bonus $ Superannuation $ Long Service Leave $ Equity Settled $ Total $ Non-Executive Directors: Michael Sandy 109,375 – – – – 109,375 Peter Stickland 118,750 – – – – 118,750 Executive Director: Andrew Purcell 391,277 109,725 – – – 501,002 619,402 109,725 – – – 729,127 The proportion of remuneration linked to performance and the fixed proportion are as follows: Fixed Remuneration At Risk (STI) At Risk (LTI) 30-Jun-22 30-Jun-21 30-Jun-22 30-Jun-21 30-Jun-22 30-Jun-21 Non-Executive Directors: Michael Sandy 100% 100% – - - - Peter Stickland 100% 100% - - - - Executive Director: Andrew Purcell 35.9% 78.1% - 21.9% 64.1% - 5 Andrew Purcell was issued 31,812,050 performance rights to vest over two tranches in accordance with shareholder approval received at the AGMon 26 November 2021. As indicated in the 2021 AGMnotice of meeting, the total number of performance rights proposed by the Company was calculated based on 3 years of director’s fees at $150,000 p.a. divided by $0.02 (being the 20-day VWAP up to and including 1 Oct 2021). However, the fair value of Andrew Purcell’s performance rights for the purposes of this financial report reflects the prevailing share price as at the date of shareholder approval. 17 Melbana Energy Limited Annual Report 2022

Service agreements Name: Andrew Purcell Title: Executive Chairman Agreement commenced: 1 April 2021 Term of agreement: No fixed term Details: Mr Purcell’s fixed remuneration is $360,000 per annum (inclusive of statutory superannuation). The STI will be up to 50% of the Annual Salary and paid in cash or shares or both at the discretion of the Board in consultation with the executive. The LTI will issue once every three years equating to a total value of $450,000. The executive can terminate the agreement with 3 months’ notice. The Company can terminate the agreement with 3 months’ notice, or payment in lieu thereof. Key management personnel have no entitlement to termination payments in the event of removal for misconduct. Share-based compensation Issue of shares There were no shares issued to Directors and other key management personnel as part of compensation during the year ended 30 June 2022 (2021: Nil) other than 31,812,050 performance rights that vested and then converted into ordinary shares by the Executive Chairman. Options There were no options over ordinary shares issued to Directors and other key management personnel as part of compensation that were outstanding as at 30 June 2022. Performance rights The terms and conditions of each grant of performance rights affecting remuneration of key management personnel in this financial year or future reporting years are as follows: Type of performance right granted Vesting date and exercisable date Number of performance rights Value per right at grant date $ Vested and exercised 30 June 2022 % Grant date 25 Nov 2021 LTI - Tranche 1 12 Apr 2022 15,906,025 0.02 100 LTI - Tranche 2 12 Apr 2022 15,906,025 0.02 100 Additional information The earnings of the Consolidated Entity for the five years to 30 June 2022 are summarised below: 2022 $ 2021 $ 2020 $ 2019 $ 2018 $ Profit/(loss) after income tax 6,332,812 (1,398,123) (2,157,906) (3,357,696) (6,100,290) Remuneration Report (audited) continued 18 Melbana Energy Limited Annual Report 2022

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