Lion Energy : Continued encouraging shows in Amanah Timur-1 well

Continued encouraging shows in Amanah Timur-1 well Highlights Lion at a glance

 ASX listed oil and gas E&P company focused on Indonesia, with two conventional PSC's.

 Net production of around 100bopd from the Seram PSC which also contains the Lofin gas/condensate field.

 An early mover in Indonesia's fledgling unconventional oil & gas industry.

 Leveraging synergies in conventional assets and access to both infrastructure and markets.

 Executive team and strategic investors with impressive track records for value creation in Indonesia.

Contact

Lion Energy Limited ABN 51 000 753 640 ASX Code: LIO

7/295 Rokeby Road Subiaco

WA 6008, Australia

Post Box 512

West Perth Business Centre WA 6872, Australia

Tel [phone] | Fax [phone]

[e-mail]

www.lionenergy.com.au

Directors & Officers

Russell Brimage Executive Chairman Kim Morrison Chief Executive Officer Stuart B. Smith Executive Director Tom Soulsby Non-Executive Director Chris Newton Non-Executive Director Zane Lewis Company Secretary

For more information contact

Kim Morrison

[phone]

[e-mail]

Stuart Smith

[phone]

[e-mail]

Zane Lewis

[phone]

[e-mail]

• Well drilling ahead at 323m KB as at morning report

• Additional zone of interest intersected from 205-225m MD with 2.5% gas peak (C1-C5)

• Elevated gas in upper 10m of "500" sandstone objective with 3.2% gas (C1-C3)

  Lion Energy Limited ("Lion" or "Company"; ASX: LIO) is pleased to announce that as of this morning's report, the Amanah Timur well is drilling ahead at 323m. The intersected formations continue to come in high to pre-drill prognosis and the well has encountered additional zones of interest. These zones will be evaluated with wireline logs and possible production testing.

  Since the last announcement by Lion on 10 January 2017, the well has drilled from 154m to the current depth of 323m KB in an interbedded sandstone, siltstone and shale section. Additional zones of interest, to be evaluated with wireline logs and possible testing, have been intersected in the well. The section from 205-225m had elevated gas up to 2.52% recorded with the following composition (C1: 21374ppm, C2 365ppm, C3 977ppm, iC4 214ppm, nC4 75ppm, iC5 191ppm). Some oil fluorescence (

  The well has an estimated cost of US$1.3mil (US$0.53mil net to Lion). This well cost includes provision for up to three production tests. Multiple sandstone reservoirs are being targeted including the shallow objective which had oil production in pre-1930 wells that are in close proximity.

  Lion's CEO, Kim Morrison, noted "We continue to be encouraged with the Amanah Timur -1 results and now look forward to drilling the objective sandstone targets below the current shale dominated section, expected from approximately 375m. As we noted yesterday, wireline log evaluation and production testing is planned to determine fluid content and potential productivity of the zones of interest penetrated to date."

  Lion at a glance

• ASX listed oil and gas E&P company focused on Indonesia; two conventional PSC's.

• Net production of around 90bopd from the Seram PSC which also contains the Lofin gas/condensate field.

• An early mover in Indonesia's fledgling unconventional oil & gas industry.

• Leveraging synergies in conventional assets and access to both infrastructure and markets.

• Executive team and strategic investors with impressive track records for value creation in Indonesia.

Contact

Lion Energy Limited ABN 51 000 753 640 ASX Code: LIO

Suite 7

295 Rokeby Road

Subiaco WA 6008 Australia

Post Box 557

Subiaco WA 6904 Australia

Tel [phone] | Fax [phone]

[e-mail]

www.lionenergy.com.au

Directors & Officers

Russell Brimage Executive Chairman Kim Morrison Chief Executive Officer Stuart B. Smith Executive Director Tom Soulsby Non-Executive Director Chris Newton Non-Executive Director Zane Lewis Company Secretary

For more information contact

Kim Morrison

[phone]

[e-mail]

Stuart Smith

[phone]

[e-mail]

Zane Lewis

[phone]

[e-mail]

Competent Persons Statement: Qualified Petroleum Reserves and Resources Evaluator

Pursuant to the requirements of the ASX Listing Rules Chapter 5, the technical information, reserve and resource reporting provided in this document are based on and fairly represent information and supporting documentation that has been prepared and/or compiled by Mr Kim Morrison, Chief Executive Officer of Lion Energy Ltd. Mr Morrison holds a B.Sc. (Hons) in Geology and Geophysics from the University of Sydney and has more than 30 years of experience in exploration, appraisal and development of oil and gas resources - including evaluating petroleum reserves and resources. Mr Morrison is a member of the American Association of Petroleum Geologists (AAPG). Mr Morrison consents to the release of this announcement and to the inclusion of the matters based on the information in the form and context in which it appears.

Glossary

bcf: billion cubic feet gas JV: joint venture

KB: kelly bushing

km2: square kilometres MD: measured depth

mmboe: million barrels oil equivalent mmbbl: million barrels

PSC: Production Sharing Contract tcf: trillion cubic feet

END