Pilot Energy : Independent Expert's Valuation - 14 June 2017

ABN 86 115229 984

Level 3, 1060 Hay Street, West Perth WA 6005

T: +61 8 9480 0470

F: +61 8 9321 0320

• Independent expert BDO values Pilot Energy shares at between 0.43 cents and 0.79 cents

• Post consolidation value range 21 cents to 40 cents

• Pilot Energy's exploration portfolio valued at up to c. $30 million

Pilot Energy Ltd (ASX: PGY) (Pilot Energy, or the Company) is pleased to announce the findings of an Independent Expert's Report, prepared by BDO Corporate Finance (WA) Pty Ltd (BDO) in association with independent technical specialist RISC Operations Pty Ltd (RISC). The report values Pilot Energy's shares, in order to inform shareholders whether the proposed share placement to Giant Rainbow Investments Ltd (the Transaction) is fair and reasonable.

As announced on 24 April 2017, Pilot Energy has entered in to a Share Subscription Agreement with Giant Rainbow Investments Ltd to raise $720,000 by issuing 240 million shares at 0.3 cents per share (15 cents post-consolidation).

BDO have determined the value of Pilot Energy's shares, post the Transaction, as follows:

BDO note that different methodologies are appropriate in valuing companies, based on the individual circumstances of the company and available information. In its assessment of the value of Pilot Energy shares BDO chose to employ Net Asset Value, on a going concern basis, as the primary valuation methodology, and instructed RISC to provide an independent market valuation of the Company's exploration assets.

RISC determined that, on a portfolio basis, the range of values for the Company's exploration assets is between A$16.5 million and A$29.6million, with a midpoint value of A$23.0 million.*

RISC's full Independent Technical Specialist Report provides significant detail regarding Pilot Energy's projects, and RISC's valuation thereof, and is included in full within the BDO Independent Experts Report as appended to the Notice of Meeting dispatched to shareholders yesterday.

* Assumes USD/AUD exchange rate = 1.31, as quoted by BDO in the Independent Expert's Report.

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Enquiries

Iain Smith, Managing Director, Tel: +61 412 638019, email: ismith@pilotenergy.com.au

interest in the EP437 permit. Key to Pilot Energy's strategy is minimisation of project entry cost and work commitments, while allowing sufficient time to add value through desktop studies prior to seeking farming partners to fund seismic and/or drilling. Pilot Energy works closely with industry partners such as seismic contractors in order to develop creative pricing models for services that help to minimise the Company's upfront cash investment.