FRANCAISE ENERGIE : Results for the H1 2016-2017 - 31/03/2017

• First revenues generation
• Significant increase in EBITDA
• Acceleration of developments accross the portfolio

Forbach, France, 31st of March 2017- La Française de l'Energie (Euronext : LFDE - ISIN : FR0013030152), the first gas producer in France, announces today its half year results for the period ending 31stof december 2016.

First generation of revenues, LFDE on track towards profitability

During the first half 2016-2017, La Française de l'Energie generated M€1,86 of revenues, the first revenue generation coming from Gazonor, its 100% owned subsidiary in Northern France, were gas is captured in the former coal mines and sold to Total. This revenue generation should accelerate in H2 on the back of ongoing operational improvements.

Improvements of results

Thanks to the consolidation of the revenues generated by Gazonor and the reduction of its operating costs, LFDE's EBITDA improves by k€500 to reach k€ -1 070 K€ for this first half vs k€ - 1 513 K€ a year ago. The Company expects to further reduce its working capital needs in H2 2016/2017. The replacement of old compressors and engines with more efficient equipment in Northern France is expected to improve significantly the productivity of the Gazonor activity and drive the ongoing EBITDA margin improvement.

EBIT reached K€ - 1 334 K€ vs K€- 1 518 in H1 2015/2016 despite strengthening the operational team and investing significantly during this period (drilling the first well in Lorraine, new equipments in Gazonor…)

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The net result of the group reached K€ - 1 767 K€ thanks to a significant reduction of interests' payments following the clean-up of the balance sheet at the IPO in 2016 that also resulted in the conversion of the convertible bonds and the reimbursement of the outstanding shareholder loan.

A solid financial position

Start of the gas to power activity in Northern France

On the 4th of November 2016, the Ministry of Climate and Energy awarded a feed-in tariff for the electricity coming from the gas produced by the Company in the former coal mines in Northern France

This feed in tariff, with a guaranteed pricing for a period of 15 years, is another major milestone in the development of LFDE as a key producer of green energy in France. This electricity production is expected to start this half year. The Company will install a first tranche of 9 MW on four sites in Northern France by June 2017.

Completion of the 1st well in Lorraine

La Française de l'Énergie launched the drilling of the CBR-1 well in Lorraine end of December 2016. This is the first well of its pre-development phase that focuses on proving reserves and producing gas on four sites already fully permitted.

Julien Moulin, Executive Chairman of La Française de l'Energie: « With the rapid integration of the Gazonor activity, the transformation of this business into a leading as to power producer in Europe is accelerating. Thanks to the installation of its first tranche of 9MWh, La Française de l'Energie will produce by the end of this semester the production equivalent to 20 wind turbines of similar capacity. This will allow the Company to reach profitability within 12 months. With the drilling of the first well of its fully permitted pre-development campaign in Lorraine, La Française de l'Energie,

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continues to strengthen its position as a leader onshore gas player. The development of its activity will allow France to replace the imported gas by a highly competitive local gas with a much lower carbon footprint."

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About La Française de l'Energie

Awarded the young innovative status by Bpifrance since June 2013, La Française de l'Énergie is a dynamic SME headquartered in East of France and the first gas producer in France. Specialised in the coal bed methane and coal mine methane production, La Française de l'Énergie produces a local high quality energy from the significant gas resources contained in the former mining basins of North-Eastern France. With the development of this local and strategic energy, La Française de l'Énergie builds an economically and ecologically competitive project with significant value added for the local communities.

More information available on www.francaisedelenergie.fr

Disclaimer

This press release contains certain forward - looking statements and estimates concerning LFDE's financial condition, operating results, strategy, projects and future performance and the markets in which it operates. Such forward-looking statements and estimates may be identified by words such as "anticipate," "believe," "can," "could," "estimate," "expect," "intend," "is designed to," "may," "might," "plan," "potential," "predict," "objective," "should," or the negative of these and similar expressions. They incorporate all topics that are not historical facts. Forward looking statements, forecasts and estimates are based on management's current assumptions and assessment of risks, uncertainties and other factors, known and unknown, which were deemed to be reasonable at the time they were made but which may turn out to be incorrect. Events and outcomes are difficult to predict and depend on factors beyond the company's control. Consequently, the actual results, financial condition, performances and/or achievements of LFDE or of the industry may turn out to differ materially from the future results, performances or achievements expressed or implied by these statements, forecasts and estimates. Owing to these uncertainties, no representation is made as to the correctness or fairness of these forward-looking statements, forecasts and estimates. Furthermore, forward-looking statements, forecasts and estimates speak only as of the date on which they are made, and LFDE undertakes no obligation to update or revise any of them, whether as a result of new information, future events or otherwise, except as required by law.

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