Carbon Energy : Managing Director Appointment Date and Appendix 3X

10 January 2018

ASX Market Announcements Platform Australian Securities Exchange

20 Bridge Street

Sydney NSW 2000

FOR ASX MARKET RELEASE

Level 9, 301 Coronation Drive, Milton QLD 4064 Australia PO Box 2118, Toowong DC QLD 4066 Australia phone + 61 (0) 7 3156 7777 fax + 61 (0) 7 3156 7776www.carbonenergy.com.au Carbon Energy Limited ABN 56 057 552 137

Carbon Energy (Operations) Pty Ltd ABN 61 105 176 967

Company Update - Managing Director Appointment Date and

Appendix 3X

Carbon Energy Limited (ASX: CNX) ('Carbon Energy' or 'Company') provides the following update in relation to the Managing Director's appointment.

The Company's market announcement made on 19 December 2017 of Mr Bryan O'Donnell's appointment as Managing Director and CEO announced that "Mr O'Donnell's appointment is effective as of 2 January 201[7]8." ('Market Announcement')

Further to the Market Announcement the Company advises that, notwithstanding Mr O'Donnell's appointment as CEO is effective 2 January 2018, his appointment as Managing Director is confirmed today, with effect from 8 January 2018.

Please find following Mr O'Donnell's Appendix 3X "Initial Director's Interest Notice" required to be lodged in accordance with Australian Securities Exchange Listing Rule 3.19A.1.

For and on behalf of the Board

ENDS

Appendix 3X

Initial Director's Interest Notice

Rule 3.19A.1

Appendix 3X

Initial Director's Interest Notice

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 30/9/2001.

Name of entity - Carbon Energy Limited ABN 56 057 552 137

We (the entity) give ASX the following information under listing rule 3.19A.1 and as agent for the director for the purposes of section 205G of the Corporations Act.

Part 1 - Director's relevant interests in securities of which the director is the registered holder

In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Note: In the case of a company, interests which come within paragraph (i) of the definition of "notifiable interest of a director" should be disclosed in this part.

Number & class of securities

Nil

+ See chapter 19 for defined terms.

11/3/2002

Appendix 3X Page 1

Appendix 3X

Initial Director's Interest Notice

Part 2 - Director's relevant interests in securities of which the director is not the registered holder

In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Part 3 - Director's interests in contracts

Note: In the case of a company, interests which come within paragraph (ii) of the definition of "notifiable interest of a director" should be disclosed in this part.

+ See chapter 19 for defined terms.

Appendix 3X Page 2

11/3/2002