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1 Vail Project Primer Contact: Tim Hoops Managing Director

2 Why is Strata-X drilling in Illinois? Illinois is a Proven and Mature Oil Provence Production dates back to 1894 with over 4 billion barrels of oil produced to date Over 140,000 wells have been drilled, with 32,000 wells still producing 600+ oil fields produced 9 million barrels last year High quality, light, sweet crude oil Photos from: Illinois Department of Natural Resources Office of Mines and Minerals and Illinois Oil Field Museum Strata-X Energy 2

3 Why is Strata-X drilling in Illinois? Geological conditions appear right for a significant oil accumulation in Southern Illinois. Excellent Source Rock New Albany Shale Proven oil generation Low Geologic Risk Evidence of a large reservoir from analysis of over 100 previous wells Good Analog evidence with the Bakken Elm Coulee Field Map Ref: USGS Strata-X Energy 3

4 New Albany Shale and its Neighbors Formation History New Albany Shale was deposited at the same time as several other significant North American oil targets. All 5 areas exhibit very good oil generating capacities. (Light blue areas) Map shows what experts believed North America looked liked during Late Devonian time, 400 million years ago. The brown and green areas are land masses, light blue are sedimentary basins, dark blue deep oceans Williston Basin, Bakken Shale Illinois Basin, New Albany Shale Late Devonian Time Michigan Basin, Antrim Shale Anadarko Basin, Woodford Shale Appalachian Basin, Marcellus Shale modified from Blakey, 2011 Strata-X Energy 4

5 New Albany Oil Generation As shown on the previous slide, the New Albany has a good pedigree having been deposited during a time when prolific source rocks were being deposited in North America. After deposition the New Albany was buried to a depth sufficient to generate significant quantities of oil, potentially more than 300 billion barrels as calculated by Lewan (2002) Vail Project is immediately up dip of the peak generating area (kitchen). Strata-X Energy 5 Map Ref: Illinois State Geological Survey

6 Numerous Productive Intervals in Illinois Illinois has produced over 4 billion barrels of oil from numerous formations 1 Nearly all of the oil produced in Illinois was generated from the New Albany shale 2 Focus of prior exploration was for conventional targets above the New Albany The Lingle Formation is a tight dolomite which requires horizontal drilling to prove up commercial production billion barrels of expelled oil as estimated by Rock Eval (Lewan, et. al., 2002). Primary Target Productive Interval Strata-X Energy 6 1) ref: Higley, etal, ) ref: Hatch and others, 1991.

7 New Albany / Lingle Couplet Maturation, generation and expulsion of oil from New Albany source rocks results in migration of oil into porous, low permeability zones in the underlying Lingle Formation as well as overlying conventional reservoirs. Similar to the Bakken and Three Forks petroleum systems in the Williston Basin. Lingle Fm. Strata-X Energy 7

8 Vail Oil Project Key Elements Source Rock - New Albany similar to other proven shale oil formations Oil Generation Evidenced by the 4+ billion barrels of oil produced to date which were generated by the New Albany Reservoir Rock Mapping suggests the Lingle reservoir may extend over 500 square miles in areal extent Proximity The Lingle reservoir is immediately underneath the New Albany Shale providing the opportunity to be filled with oil. Strata-X Energy 8

9 Elm Coulee Bakken has similarities to the Vail Oil Project 10 miles Gas OCM Similar scales G & OCM G & OCM OCM Numerous O, G & OCM 368 MBO 236 MBO BOPD 5-98 BOPD BOPD Gas 4-28 BOPD Similar size, source rock and reservoir Dolomitic reservoir immediately below excellent source rock (~11% porosity) Same geological ages and paleogeography Similar oil generating attributes Total Organic Carbon Hydrocarbon Index Tmax Elm Coulee has produced > 123 MMBO* from horizontal/ frac wells Projected Field EUR ~212 MMBO Strata-X Energy 9 * Ref: Montana Board of Oil and Gas

10 How is Strata-X going to drill the Burkett 5-34HOR well? Well design has multiple components Surface Hole Designed to protect freshwater zone Vertical Section Designed to obtain necessary geologic and reservoir data Bend Turning the wellbore from the vertical to horizontal Cased production string further protects upper formations Horizontal Up to 4,200 feet of exposure to the target zone Drilled with minimal invasion fluids Scope of work subject to actual conditions encountered Strata-X Energy 10

11 Drilling Plan Surface Hole Drill surface hole with freshwater to ~350, below the freshwater zones Freshwater zones are then isolated with steel casing and cement. Scope of work subject to actual conditions encountered Strata-X Energy 11

12 Drilling Plan Vertical Hole Prior to drilling, surface casing is pressure tested to insure the freshwater zones are protected. Drill vertically from the surface casing to just above the target formations Take a core of the reservoir and adjoining formations Core will give needed data for completion design Test the reservoir for fluid content and reservoir pressure Scope of work subject to actual conditions encountered Strata-X Energy 12

13 Drilling Plan Bend Plug bottom portion of vertical hole Well drilled at an increasing angle until drill bit is nearly horizontal Casing run from bottom to surface and cemented to further protect freshwater zones. Scope of work subject to actual conditions encountered Strata-X Energy 13

14 Drilling Plan Horizontal Completed Wellbore Diagram Once the Bend has been cased the well is drilled horizontally through the target zone. Between 2,000 to 4,300 of lateral will be drilled The target zone is then isolated by the use of casing, and packers The packers isolate the target zone into separate stages for more effective stimulation. Scope of work subject to actual conditions encountered Strata-X Energy 14

15 How is Strata-X going to complete the Burkett 5-34HOR well? Completion design Final completion design will be dependent on data obtained while drilling and testing Rock mechanics from core, test and logs Pressure test from Stage 1 test Permeability will be a prime factor in determining completion techniques Scope of work subject to actual conditions encountered Strata-X Energy 15

16 Completion Plan Production Test Stage 1 Completion Stage 1 also known as the toe, will be tested first to determine rock properties and reservoir conditions Scope of work subject to actual conditions encountered Strata-X Energy 16

17 Completion Plan Hypothetical Production Mode Production The exact completion method has not been determined Strata-X may conduct fracture stimulation of the target zone to develop tiny pathways for the oil to flow to the wellbore and ultimately be pumped to the surface The diagram below shows what this might look like should a fracture stimulation be conducted Scope of work subject to actual conditions encountered Strata-X Energy 17

18 Strata-X is a first mover in the Vail Oil Project Significant land position: ~48,000 acres under lease or option Ability to increase position upon success 100% working interest in the project: Good margins ~85% NRI Proven Mature Petroleum Basin: 4+ billion barrels produced to date Infrastructure in place Flat easy access Shallow Resource: Expected well costs ~ USD$2.5 million once in full development foot thick reservoir mapped over a large area Estimated 200 million barrels of OOIP* net to Strata-X * Undiscovered Estimated original oil in place, unrisked Strata-X Energy 18

19 Vail Project just one of 4 large projects in the Strata-X portfolio Management aligned with shareholders: Chairman and President own ~20% of company Have a proven track record of shareholder growth 100% of Vail & Maverick (Eagle Ford-TX) unconventional oil: USA unconventional oil projects with ~1.1 billion barrels of oil resources in place net to Strata-X* Primary goal: proving commercial oil production Strata-X to use latest drilling and multistage stimulation extraction technologies 100% of the Sleeping Giant (ND) unconventional gas: Tcf gas potential*, shallow/low cost, improving gas price 100% Canning Basin Project in the Canning Basin, (WA, AUS): 1.4 million acre Canning project is within the interpreted Laurel shale oil to wet gas window 5.5 Tcf and 1,000 Mmbbls** undiscovered resource potential in place Financial capability to drill/test key USA projects: Recent $12.7 million ASX capital raise * Undiscovered Estimated OOIP ** Undiscovered Estimated Resource Potential Strata-X Energy 19

20 Definitions In this document, the abbreviations set forth below have the following meanings: Oil and Natural Gas Bbl Bbls Mbbls MMbbls Mcf MMcf Bcf TCF barrel barrels thousand barrels million barrels thousand standard cubic feet million standard cubic feet billion cubic feet trillion cubic feet Other Hydrocarbon Index- measure of the hydrogen richness of the source rock, and when the kerogen type is known it can be used to estimate the thermal maturity of the rock. OOIP Original Oil in Place. Permeability the ability or measurement of a rock s ability to transmit fluids. Porosity percentage of pore volume or void space or that volume within rock that can contain fluids. Reservoir Rock refers to a subsurface pool of hydrocarbons contained in porous or fractured rock formations. Rock Eval is used to identify the type and maturity of organic matter and to detect petroleum potential in sediments. Source Rock - refers to carbon bearing rocks from which hydrocarbons have been generated or are capable of being generated. Tmax - highest temperature incurred by a Source Rock, generally higher temperatures equates to larger hydrocarbon generation. Total Organic Carbon (TOC) amount of carbon in a geological formation, mainly Source Rocks. Strata-X Energy 20

21 Disclaimer Statement Forward-Looking Statements This summary contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including statements regarding the use of proceeds. These forward-looking statements are based on certain key expectations and assumptions, including assumptions regarding the general economic conditions in USA and globally, industry conditions in USA and the operations of the Company. These factors and assumptions are based upon currently available information and the forward-looking statements contained herein speak only as of the date hereof. Although the Company believes the expectations and assumptions reflected in the forward-looking statements are reasonable, as of the date hereof, undue reliance should not be placed on the forward-looking statements as the Company can give no assurances that they will prove correct and because forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. These risks include, but are not limited to: uncertainties and other factors that are beyond the control of the Company; global economic conditions; risks associated with the oil and gas industry; commodity prices and exchange rate changes; operational risks associated with exploration, development and production operations; delays or changes in plans; specific risks associated with the ability to execute production sharing contracts, ability to meet work commitments, ability to meet the capital expenditures, estimated size of any seismic features and whether additional geosciences work will progress to defining drillable locations; risk associated with stock market volatility and the ability of the Company to continue as a going concern. The Company assumes no obligation to update any forward-looking statements or to update the reasons why actual results could differ from those reflected in the forward-looking statements, except as required by securities laws. (Additional information identifying risks and uncertainties is contained in filings of the Company with Canadian securities regulators). Disclaimer This summary shall not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities to be offered have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. Person absent registration or an applicable exemption from the registration requirements of such Act or laws. In addition, the Company makes not representation or warranty, express or implied, in relation to, and no responsibility or liability is or will be accepted by the Company or its directors, officers, shareholders, partners, employees or advisers as to or in relation to the accuracy or completeness of the information, statements, opinions or matters (express or implied) arising out of, contained in or derived from this presentation or any omission from this presentation or of any other written or oral information or opinions provided now or in the future to any interested party or its advisers. Cautionary Statement: Undiscovered Resources, OOIP and BOE Undiscovered Hydrocarbon-In-Place (equivalent to undiscovered resources) is that quantity of petroleum that is estimated, on a given date, to be contained in accumulations yet to be discovered. There is no certainty that any portion of the undiscovered resources will be discovered or that, if discovered, it will be economically viable or technically feasible to produce. Original-Oil-in-Place (equivalent to Discovered Petroleum Initially in Place), also known as discovered resource, is defined as that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production. The recoverable portion of OOIP includes production, reserves and contingent resources; the remainder is defined as unrecoverable. The terms barrels of oil equivalent or boe may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet (6 mcf) to one barrel (1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Strata-X Energy 21