31 January 2018: Completion of Acreage Acquisition

ASX Code: CE1

Market Announcements Platform

ASX Limited

Exchange Centre 20 Bridge Street Sydney NSW 2000

31/01/2018

Montney Core Acreage Acquisition Completed

Highlights:

• • Calima was the successful bidder for an additional 2,738 acres of Montney drilling rights in the December 2017 land auction.

• • This most recent award essentially completes the Calima Lands core acreage acquisition strategy.

• • Opportunities for acreage growth will still be considered but the focus of activity in the Calima Lands now moves towards operational activities in preparation for a drilling programme.

• • McDaniel & Associates Limited to prepare an independent resource assessment.

Calima Energy Limited (ASX:CE1) ("Calima" or the "Company") advises that its core acreage holding in Northeast British Columbia has grown by an additional 2,738 acres as a consequence of successful bids in recent Government land auctions. The Calima Lands now comprises 72,014 acres of drilling rights (105 Sections) over acreage considered to be highly prospective for the Montney Formation.

This most recent award of drilling rights essentially completes the Company's land acquisition strategy and is a significant milestone for the project. Additional opportunities to grow the acreage position through acquisitions and/or swaps will be considered, however the focus of the Company's activities in British Columbia will now shift towards operational activities in anticipation of a drilling programme.

Completion of the acreage acquisition strategy has enabled the Company to commission McDaniel & Associates Ltd, a leading Canadian reserves auditor, to undertake a resource assessment of the Calima Lands. The results will be released to the market during Q1.

Alan Stein, Calima's Managing Director commented:

"We are delighted to have been able to successfully complete our strategy to build a large contiguous land position within the liquid-rich part of the most active hydrocarbon play in Canada. The early mapping work by the joint venture enabled us to identify this opportunity ahead of industry trends and our most recent and more detailed evaluation has confirmed our view that the acreage is highly prospective. Our efforts will now be directed to putting in place all the operational work necessary to drill wells optimally located and designed to demonstrate the value of the Calima Lands."

For further information visitwww.calimaenergy.com or contact:

Calima Energy Limited

Alan Stein	Jonathan Taylor	Glenn Whiddon	Steve Suleski
Managing Director	Technical Director	Chairman	Media: FTI Consulting
E:[e-mail]	E:[e-mail]	E:[e-mail]	E:[e-mail]
T: [phone]	T+ 44 77391 77805	T: [phone]	T: [phone]

About Calima Energy

Calima Energy Limited (ASX:CE1) is an international oil and gas company with interests in an area of British Columbia that is considered to be highly prospective for the Montney Formation.