Ann: Operations Update, page-3

Drilling operations updateThe Company is pleased to announce that drilling of the top-hole sections for both the vertical and lateral wells at the Lesedi CBM Project has been completed successfully and is in line with budget. Preparations for drilling of the lateral wells for Lesedi 3 and 4 have commenced with the program set to continue into early 2019These wells are being drilled in the area proposed for initial project development and are aimed at confirming the gas flow rate in this area prior to commencement of development operations.

Tlou Managing Director Tony Gilby said “The drilling operations have progressed extremely well, and I would like to thank all our field staff for their excellent work to get to this stage. I look forward to the drilling of the lateral sections of Lesedi 3 and Lesedi 4 followed by commencement of production testing operations in early 2019. We will keep the market informed as we continue to progress the program.”