Ann: RMP: Operations Update - Surface Casing Successfully Run, page-2

Alaska

Red Emperor has entered into Definitive Agreements with its consortium partners 88 Energy Limited and Otto EnergyLimited that will see the Company participate in the drilling of a highly prospective Nanushuk oil trend explorationwell on the Alaska North Slope in early 2019.
The drill target is immediately adjacent to and a direct analogue of thethird party Horseshoe-1/1A oil well drilled in 2017.
Horseshoe is part of the billion-barrel plus Nanushuk oil playfairway, one of the largest conventional oil fields discovered in the US in more than 30 years.
Technical work on the Western Blocks has identified a gross best estimate prospective resource volume of 400 MMbbls(126 MMbbls net to RMP), and a geological chance of success of 25%-35%.
The estimated quantities of petroleumthat may potentially be recovered by the application of a future development project(s) relate to undiscoveredaccumulations.
These estimates have both an associated risk of discovery and a risk of development.
Furtherexploration, appraisal and evaluation is required to determine the existence of a significant quantity of potentiallymoveable hydrocarbons.