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1 SWALA ENERGY LIMITED ACN ASX Release (ASX: SWE) 2 nd June 2014 Shareholder Presentations Pursuant to Swala Energy Limited s ( Company ) (ASX: SWE) ASX announcement on the 20 th May 2014 attached is the presentation to be given at the following presentations: City Date Local Time Venue Brisbane Mon, 2 nd June am Marriott Hotel 515 Queen Street Brisbane QLD 4000 Sydney Tues, 3 rd June am Radisson Blu Plaza Hotel Sydney 27 O'Connell Street Sydney NSW 2000 Melbourne Thurs, 5 th June am The Westin Melbourne 205 Collins Street Melbourne, Victoria 3000 The presentations will include an update on operations and corporate developments during the year to date. Swala Energy Limited Dr. David Mestres Ridge (CEO) T: david.mestres@swala-energy.com Walbrook Investor Relations Mr. Ben Knowles T: M: ben.knowles@walbrookir.com.au About Swala: Swala Energy Limited is an Australian oil and gas company listed on the Australian Securities Exchange ( ASX ) under the symbol SWE. Swala s holdings are predominantly in the world-class East African Rift System with a total net land package in excess of 19,800km 2 in Kenya, Tanzania and Zambia. New discoveries have been announced in a number of licences along this trend, including Ngamia, Twiga and Etuko, which extend the multi-billion barrel Albert Graben play into the eastern arm of the rift system. Swala has an active operational and business development programme to continue to grow its presence in the promising hydrocarbon provinces of sub-saharan Africa. Swala Energy Limited 70C Kishorn Road, Mount Pleasant, WA 6153, Perth, Australia Telephone: + 61 (0) Fax: + 61 (0)

2 Swala s in the Starting Blocks INVESTOR PRESENTATION 2 nd -6 th JUNE 2014 Dr. David Mestres Ridge CEO Swala Energy Limited ASX:SWE

3 Disclaimer Certain statements contained in this presentation, including information as to the future financial or operating performance of Swala Energy Limited ( Swala or Company ) and its projects, are forward-looking statements. Such forward-looking statements: are necessarily based upon a number of assumptions and estimates that, while considered reasonable by Swala, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements; and may include, among other things, statements regarding targets, estimates and assumptions in respect of production, prices, operating costs, results, capital expenditures, reserves and resources and anticipated flow rates, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. Swala disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to rely on forward-looking statements due to the inherent uncertainty therein. Persons compiling information about hydrocarbons: In accordance with ASX Listing Rules, any geological or hydrocarbon reserves information in this presentation has been reviewed by Swala s Exploration Director, Mr Neil Taylor, who has over 30 years experience in the sector. He consents to that information in the form and context in which it appears. 2

4 Investment highlights Significant exposure to the proven East African Rift System Three Neogene basins identified during 2013 One prospect identified in Kilombero in 2013 (rest of the basin in 2014) Successful farm-out of 12B indicates industry appetite for EARS acreage Active business development pipeline Good cash position with supportive cornerstone investors Key exploration programme through 2014 ahead of drilling in 2015 up to 1,050 km 2D seismic in three basins Acreage in the EARS: a scarce resource 3

5 Corporate Snapshot Capital Structure ASX Ticker Shares on issue Performance shares 1 Options 2 Share price 3 Market capitalisation SWE 153,758,698 shares 15,000,000 performance shares 8,700,000 options 25 cents $38.25 million (1) 5,000,000 Class B Performance Shares issued to the original vendors that will convert to Ordinary Shares if the definition of P50 Prospective Resources of 200MMstb recoverable oil is achieved; 10,000,000 Class A Performance Shares issued to the original vendors that will convert to Ordinary Shares on spudding of a well. (2) 8.7 million options (all exercisable at 30 cents), of which 8.0 million are escrowed to April (3) Share price on the 28 th May Board and Management Mr. Ken Russell Dr. David Mestres Ridge Mr. Neil C. Taylor Mr. Charlie Benson Mr. Peter Grant Mr. Ernest Massawe Non-Executive Chairman Chief Executive Officer Exploration Director Non-Executive Director Non-Executive Director Non-Executive Director 4

6 Significant land position 18,186km 2 12B Operator: Tullow Swala interest: 25% net (1) Net acreage: 2,000 km 2 (1) In the 2 nd Contract Year. Pangani Operator: Swala Tanzania Swala interest: 32.5% net Net acreage: 5,576 km 2 In the 3 rd Contract Year. Kilosa-Kilombero Operator: Swala Tanzania Swala interest: 32.5% net Net acreage: 5,745 km 2 In the 3 rd Contract Year. Block 44 Operator: Swala Zambia Swala interest: 100% net Net acreage: 4,865 km 2 Pending ministerial award. (1) Following farm-down pursuant to Swala s ASX announcement of the 10 th March Company Presentation May

7 Tanzania: Uncovering prospectivity Moshi Basin Recovery factor range used is 20% (P90) - 30% (P50) 40% (P10) for the Yellow Horizon, and 10% (P90) 20% (P50) 30% (P10) for the Blue Horizon. Swala has a 65.13% equity interest in Swala Oil & Gas (Tanzania) Limited ( SOGTL ). (Refer Swala s ASX announcement of the 11 th December 2013 and RISC ITSR of the same date). Mvungwe Basin Kilosa Basin Kidatu Basin Gross prospective unrisked oil resources (1) - mmstb P90 P50 P Kilombero Basin Swala net, yellow horizon (3) Swala net, blue horizon (3) Swala net, both horizons (3)

8 Tanzania: Kilombero analogue to Lokichar Comparable Dimensions: the Kilombero Basin is approximately 100km long and about 20km wide; the Lokichar Basin in Kenya is approximately 150km long and 25-30km wide. Schematic of the Lokichar Basin Discoveries: Seven discoveries to date in the Lokichar, and an active exploration and appraisal drilling programme planned by Tullow for Potential: We see the potential for additional leads along the Kito trend, which will be the focus of activity in

9 Kenya: 3 rd party exploration of the EARS 10BA: Tullow/Africa Oil Wells planned for Kiboko and Kifaru prospects late 2014 (103mmboe gross combined). 10BB: Tullow/Africa Oil Drilling program currently in progress for 7 identified prospects (361mmboe gross combined). 13T: Tullow/Africa Oil 6 prospects identified with drilling program in progress and to continue until Drilling planned by other companies along the EARS trend in Kenya during 2014 and 2015 (excluding any activity in 12B). 8

10 Kenya: seismic guided by basin models Models of hydrocarbon charge vs. temperature give guidance as to the likelihood of hydrocarbons having been generated in the basin. Model-predicted oil and gas expulsion from a typical lacustrine Type I source rock - 5%TOC, HI 600mg/g TOC, 0 to 100m thickness varying from basin edge to centre, 2,637.01km 2. Note that the figures are for the expelled volumes and not for the trapped volumes (~10%). 9

11 Kenya: legacy data suggests deep basin Basin modelling carried out in 2013 guided the design of the work program and was instrumental in reducing the seismic commitment from 700km to 350km of more targeted activity. Swala has re-worked original legacy data based on its experience in the Pangani licence. Results suggest much clearer definition of a Neogene basin with possible sediment fill down to around 3,000 m at the edge of the basin. Current seismic programme due to complete mid-june. Initial results show potential intra-basin structures but we need to complete the processing and interpretation of the results. 10

12 Kenya: Multi-well carry through farm-out Announced 10 th March Transaction awaiting Government consent; Terms designed to recognise exploration risk but to balance the upside in a fair manner: Seismic commitment covered to a maximum of $2.7MM ($10.8MM gross); If seismic shows positive results, then Swala s first well costs are carried - to a maximum of $7.5MM; and If first well a success, then Swala s second well costs are also carried to a maximum of $7.5MM. Tullow Oil will continue to hold 50% net working interest and remain the Operator. Best farm-out achieved onshore East Africa on a $ per km 2 basis. 11

13 Zambia: Third growth area Awarded 100% of Block 44. Gravity and legacy seismic suggests thick sequence of Karoo-aged sediments. Mobil Oil explored the basin in the late 1980 s and collected a large volume of 2D seismic data. No wells drilled. Seismic shows significant sedimentary fill and large structural traps. The adjacent blocks have already been bought from the original owners: On 9th April 2014 Tower Resouces bought Rift Petroleum (offshore RSA and onshore Zambia) for $32.5 million. In Zambia they held 80% of blocks 40 and

14 2014: building the prospect portfolio BLOCK 12B JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC 350 km Seismic acquisition & processing Interpretation & evaluation PANGANI JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC Evaluation of 2013 Seismic Seismic planning & EIA Interpretation & evaluation 200km seismic acquisition KILOSA-KILOMBERO JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC Seismic planning & EIA 500km seismic acquisition BLOCK 44 JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC Review of legacy data 13

15 2014: listing on the Dar Stock Exchange Swala Oil & Gas (Tanzania) plc 65.13% held by Swala Energy Limited; Listing on the DSE to raise between US$1 million and US$3 million; Long process but very able local advisors; Cash CMSA has now approved the Prospectus. Next step is DSE approval (DSE previously approved subject to CMSA approval, so this step is now a formality); Offer to open on the 9 th June and close on the 4 th July. At end, Swala Energy should hold between 58% and 60% of the shares (27% - 30% indirect equity in the Tanzanian licences). 14

16 Thank you for listening For further information please contact: Swala Energy Limited David Mestres Ridge (CEO) T: david.mestres@swala-energy.com Walbrook Investor Relations Ben Knowles T: M: ben.knowles@walbrookir.com.au 15