RUHUHU BASIN TANZANIA EXPLORATION PROJECT

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1 6 June 2013 ASX Release RUHUHU BASIN TANZANIA EXPLORATION PROJECT HIGHLIGHTS: PSA Signed, 10,343 km 2 exploration licence, 100% Jacka Located in East African Industry Hotspot Multi-faceted Prospectivity o Multi-million barrel conventional oil potential o Conventional gas potential o Multi-Tcf unconventional potential (shale gas and coal seam methane) o Multiple Commercialisation options As previously announced, on 19 March 2013, Australian listed African explorer Jacka Resources Limited ( Jacka or the Company ) signed a Production Sharing Agreement ( PSA ) for the Ruhuhu Basin Block at a ceremony in Dar es Salaam. Under this PSA, the Government of the United Republic of Tanzania issued the Ruhuhu Exploration Licence in which Jacka Resources is the Operator with 100% initial interest. The Ruhuhu exploration licence covers 10,343 square kilometres. The Tanzanian Petroleum Development Corporation (TPDC) has a right, upon development, to take up a 20% interest in the Development Licence. Figure 1: PSA signing. Left to right: Jacka Resources Chairman Scott Spencer, Minister for Energy and Minerals, the Hon. Prof. Sospeter Muhongo and Tanzania Petroleum Development Corporation Managing Director, Mr. Yona Killagane

2 Tanzania Overview The Ruhuhu Block is located in south western Tanzania, adjacent to Lake Nyasa. Tanzania has recently become one of the world s international oil and gas exploration hot spots. The country grabbed petroleum industry headlines over the past two years with industry leaders such as Petrobras, Shell, Statoil, ExxonMobil and BG entering the country to explore offshore and Independents such as Beach Energy, Heritage and Maurel et Prom onshore. Between 2010 and March 2013, an estimated 33.7 Tcf in recoverable gas resources have been discovered offshore and 8 Tcf onshore, with further drilling continuing through 2013 and 2014 and plans underway for LNG exports (Statoil/Exxon/BG/TPDC). Tanzania is still considered to be under-explored, particularly onshore and has further significant exploration potential within both the offshore deep water blocks and the numerous onshore basins, such as the Ruhuhu Basin, located in the central and western parts of the country. Beach Energy Swala Heritage Oil and Gas Jacka Resources Statoil ExxonMobil BG Ophir, Onshore Est 41.7 Tcf Reserves to March 2013 East African Rift Figure 2: TPDC Activity Map May 2013

3 The rapid expansion of exploration activity offshore Tanzania has not only led to discoveries but also greater in-country operational capacity arising from the presence of many leading multinational exploration service providers. This in-country capacity increases Jacka s ability to undertake a costefficient exploration program. Geological Setting Located in south west Tanzania (Figure 2), the Ruhuhu Basin is one of a series of, Karoo basins that extended from South Africa to Kenya and beyond, across the African component of the ancient Gondwanan continent composed of Africa, Australia, Antarctica and India (Figure 3). The Karoo basins were generally active from the Late Carboniferous to the mid Jurassic and basins of similar age occur across Gondwanaland. Ruhuhu Basin Cooper Basin Gondwana Landmass Main Karoo Basin Bowen Basin Figure 3. Early Permian Reconstruction of Gondwana showing Karoo Basins (after Wopfner 1999). SP = South Pole The Late Carboniferous was a global cool period, with glaciers extending as far north as the presentday Saudi peninsula while the subsequent early Permian was a period of rapidly warming climate which resulted in glacial retreat and a high concentration of CO2 in the atmosphere. This climate change stimulated a sudden increase in bioproduction, and the resulting organic material is widely preserved within the Gondwanan basins of this age and is the origin of numerous significant hydrocarbon and coal resources.

4 Across Gondwanaland there is a remarkably common early Permian stratigraphy consisting of carbon-rich black shales interbedded with coals, siltstones, claystones and sandstones. The coal beds of Eastern Australia s Bowen Basin are part of this system and form the basis for both a major coal industry and the export liquefied natural gas (LNG) projects using coal seam gas (CSG) from these deposits. These deposits are also significant for the conventional oil and gas business, notably in Australia where the Patchawarra and later Roseneath/Epsilon Formations of the Cooper Basin (Figure 3) are significant conventional oil and gas producing intervals and more recently the subject of unconventional exploration. A similar high-toc (Total Organic Carbon) sequence is also found in the early Permian K2 type section of the Ruhuhu basin of Tanzania and the Ecca Group of the Main Karoo Basin in South Africa Based on existing gravity surveys the Ruhuhu Basin is interpreted to contain at least 3,000m of Karoo sediments. Mapping of outcrops at the basin margin demonstrates 650m of the Early Permian K2 sediments and these may be thicker in the basin centre. The presence of this high TOC sequence suggests potential for both conventional and unconventional oil & gas resources in the Ruhuhu Basin (see below). After the break-up of Gondwana in the Late Jurassic, the Ruhuhu Basin remained relatively quiescent until the formation of the East African Rift (EAR) in the Tertiary, which created Lake Nyasa at the western end of the block (Figure 4). Available gravity and research seismic data suggests a significant thickness of Tertiary sediments in the lake and an adjacent delta in the eastern end of the Ruhuhu block. The East African rift has been the focus for significant exploration following on from the initial discoveries in 2006 by Hardman Resources adjacent to Lake Albert, Uganda, also an East African Rift basin. These initial discoveries have led to more than one billion barrels of reserves discovered to date in the Lake Albert graben and further successful exploration in other East African Rift basins such as the Turkana Basin in Kenya. Conventional Prospectivity The Ruhuhu delta, in the west of the block, is the initial focus of conventional prospectivity because of some key geological similarities with the Kaiso-Tonya area of Lake Albert, Uganda where the first East African Rift oil discoveries were made in 2006 (Figure 5). The Ruhuhu delta, like the Kaiso-Tonya area, has a large sediment input (providing both potential reservoir and seal rocks) and is located updip and close to a potentially mature source kitchen. Volatile hydrocarbons in sediment samples taken from the floor of Lake Nyasa, coincidentally located above a gravity low, indicate the potential for a thick sediment pile and a mature source area which could expel hydrocarbons into adjacent reservoirs within the Tertiary delta or the older Ruhuhu Basin section. While the Ruhuhu delta in the west is an initial focus for a conventional exploration program, the potential for conventional hydrocarbon prospectivity will also be investigated in the central and eastern Ruhuhu. The Permian analogues indicate potential for both conventional and unconventional hydrocarbons in the equivalent section of the Ruhuhu Basin.

5 Unconventional Prospectivity Potential for multi-tcf unconventional gas resources has been identified in the Ruhuhu Basin where Early Permian bituminous coals and thermally mature, high TOC shales are well documented. The central and eastern portions of the Ruhuhu block will be the primary unconventional focus area during the initial exploration Period of the Ruhuhu PSA. As discussed above, the Ruhuhu Basin Permian section is related to the other early Permian shales and coals across the former Gondwanan landmass (Figure 3) which have become the target of unconventional exploration and development programs in recent years: Shell, ConocoPhillips, Origin, Santos, BG and their partners are developing major LNG export schemes based on coal seam gas (CSG) production from the Permian aged Bowen Basin in Queensland. Exploration is moving into other similar aged basins in New South Wales and Queensland (Gunnedah and Galilee) International oil companies including Shell, Sasol, Statoil and others are actively targeting shale gas in the early Permian Ecca shales of the Main Karoo basin in South Africa. Origin Energy, Sasol and others are actively exploring for coal seam gas (CSG) in early Permian coals in Botswana, following Origin s success in CSG production from the Permian coals of the Bowen Basin in Queensland from the late 1990s. Santos, Beach Energy, BG and others are successfully targeting early and late Permian shales and tight gas sands in the Cooper Basin. According to Santos, a potentially world-scale unconventional resource play is emerging. In February 2013, Beach Energy announced that Chevron would be participating in unconventional exploration in PEL218 and ATP855. Work Program As previously announced, key terms of the PSA are as follows: licence area of 10,343 square kilometres in south-western Tanzania Jacka is Operator of the licence and holds an initial 100% interest the first exploration period is for 4 years and includes acquisition of airborne gravity and magnetics, a minimum 400 km of seismic, and one exploration well. The exploration program is underway, with numerous geological and geophysical studies as well as an airborne gravity and magnetics survey planned in the short term. The survey, expected to commence around Q3 2013, will be used to define basin characteristics and provide input to development of a 2D seismic program in With 100% of the Ruhuhu exploration licence, Jacka retains the ability to drive the exploration program and attract partners to the project as and when appropriate.

6 N Lake Turkana Lake Albert Lake Tanganyika Ruhuhu Block Lake Nyasa 250km Figure 4. East African Rift Basins.

7 N Lake Albert, Uganda Figure 5. East African Rift Basin Plays. Top: Kaiso-Tonya discoveries, Uganda. Bottom: Ruhuhu delta, Tanzania

8 For more information please contact: Richard Aden, Executive Director or Stephen Brockhurst, Director Jacka Resources Limited Tel: info@jackaresources.com.au Colin Hay or Tony Dawe Professional Public Relations Tel: Colin Hay mob: colin.hay@ppr.com.au, tony.dawe@ppr.com.au, This document has been prepared by Jacka Resources Limited for the purpose of providing an activity update to interested analysts/investors and shareholders. Any statements, opinions, projections, forecasts or other material contained in this document do not constitute any commitments, representations or warranties by Jacka Resources Limited or its directors, agents and employees. Except as required by law, and only to the extent so required, directors, agents and employees of Jacka Resources Limited shall in no way be liable to any person or body for any loss, claim, demand, damages, costs or expenses of whatsoever nature arising in any way out of, or in connection with, the information contained in this document. This document includes certain statements, opinions, projections, forecasts and other material, which reflect various assumptions. The assumptions may or may not prove to be correct. Jacka Resources Limited recommends that potential investors consult their professional advisor/s as an investment in the company is considered to be speculative in nature. Persons compiling information about Hydrocarbons Pursuant to the requirements of the ASX Listing Rules 5.11, , 5.12 and 5.13, the technical information provided in this announcement has been compiled by Justyn Wood, Technical Director of Jacka Resources Limited. Mr Wood is a qualified geophysicist with 20 years technical, commercial and management experience in exploration for, appraisal and development of oil and gas resources. Mr Wood has reviewed the results, procedures and data contained in this announcement. Mr Wood consents to the inclusion in this announcement of the matters based on the information in the form and context in which it appears.