ADX Energy : Appendix 5B December 2014

Rule 5.5

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013

Name of entity

ADX ENERGY LTD

ABN Quarter ended ("current quarter")

50 009 058 646 31 December 2014

Cash flows related to operating activities

1.1 Receipts from product sales and related debtors
Receipts from joint venture partners/
reimbursements from joint ventures
1.2 Payments for (a) exploration & evaluation
(b) development
(c) production
(d) administration, net
(e) payments on behalf JV
1.3 Dividends received
1.4 Interest and other items of a similar nature
received
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Other (provide details if material)

Net Operating Cash Flows

+ See chapter 19 for defined terms.

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Current quarter
$A'000
1.23 Aggregate amount of payments to the parties included in item 1.2 154
1.24 Aggregate amount of loans to the parties included in item 1.10 ‐

1.25 Explanation necessary for an understanding of the transactions
Payment of director consulting fees and salaries

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
None

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest
None

+ See chapter 19 for defined terms.

Appendix 5B Page 2 01/05/2013

Add notes as necessary for an understanding of the position.

3.1 Loan facilities
3.2 Credit standby arrangements

4.1 Exploration and evaluation
4.2 Development
4.3 Production
4.4 Administration, net of reimbursement

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.

Note cash inflow expected in next quarter:

1. Funds owing from Gulfsands- refer section 6.2

+ See chapter 19 for defined terms.

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6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed
6.2 Interests in mining tenements and petroleum tenements acquired or increased
On 20 December 2013, ADX signed a settlement agreement with Gulfsands Petroleum Plc ("Gulfsands"). Under this agreement, Gulfsands withdraws from the Kerkouane Permit offshore Tunisia and ADX transfers its entire remaining non‐operated 30% participating interest in its onshore Chorbane exploration permit to Gulfsands for a cash consideration of USD 1.75M. The first instalment of the cash consideration, being USD 250,000 was received by ADX in January 2014. Completion of the sale fell due on 26 August 2014. Gulfsands has failed to fulfil its obligation to complete and pay the purchase price
of USD 1.5 million. ADX is currently undertaking legal action to recover these funds - refer to ASX
announcement dated 3/9/2014.
Court proceedings have commenced with a Case management Conference held on 19 December 2014 in the English High Court in London. The summary judgment hearing is set on 9 February 2015.
ADX expects to be paid in full.

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

7.3 +Ordinary securities

+ See chapter 19 for defined terms.

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7.4 Changes during quarter
(a) Increases through issues (b) Decreases
through returns of capital, buy‐backs
7.12 Unsecured notes

(totals only)

1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).

2 This statement does give a true and fair view of the matters disclosed.

Sign here: ............................................. Date: 30 January 2015

Managing Director

Print name: Wolfgang Zimmer

+ See chapter 19 for defined terms.

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1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements and petroleum tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement or petroleum tenement, it should disclose the change of percentage interest and

conditions precedent in the list required for items 6.1 and 6.2.

3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.

4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of

Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

+ See chapter 19 for defined terms.

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