PILT ENER : Appendix 3B 17 July 2017

Name of entity

Pilot Energy Limited

ABN

86 115 229 984

1

+Class of +securities issued or to be issued

Fully paid ordinary shares

2

Number of +securities issued or to be issued (if known) or maximum number which may be issued

240,000,000 shares

3

Principal terms of the

+securities (eg, if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if

+convertible securities, the conversion price and dates for conversion)

Shares- Fully paid ordinary shares

4

Do the +securities rank equally in all respects from the date of allotment with an existing +class of quoted +securities?

If the additional securities do not rank equally, please state:

• the date from which they do

• the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment

• the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

Yes- Fully paid ordinary shares

5

Issue price or consideration

$0.003 per share ($720,000 total).

6

Purpose of the issue

(If issued as consideration for the acquisition of assets, clearly identify those assets)

To provide additional capital to Pilot Energy Limited, as outlined in the Explanatory Statement which accompanied the Notice of General Meeting lodged on 13 June 2017.

6a

Is the entity an +eligible entity that has obtained security holder approval under rule 7.1A?

If Yes, complete sections 6b - 6h in relation to the +securities the subject of this Appendix 3B, and comply with section 6i

Yes.

6b

The date the security holder resolution under rule 7.1A was passed

28 February 2017.

6c

Number of +securities issued without security holder approval under rule 7.1

Nil

6d

Number of +securities issued with security holder approval under rule 7.1A

Nil

6e

Number of +securities issued with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting)

240,000,000 shares issued with shareholder approval at the general meeting held on 12 July 2017.

6f

Number of securities issued under an exception in rule 7.2

Nil

6g

If securities issued under rule 7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the issue date and both values. Include the source of the VWAP calculation.

N/A

6h

If securities were issued under rule 7.1A for non-cash consideration, state date on which valuation of consideration was released to ASX Market Announcements

N/A

6i

Calculate the entity's remaining issue capacity under rule 7.1 and rule 7.1A - complete Annexure 1 and release to ASX Market Announcements

Rule 7.1- 476,822,524

Rule 7.1A -317,881,683

7

Dates of entering +securities into uncertificated holdings or despatch of certificates

14 July 2017

Number

+Class

8

Number and +class of all

+securities quoted on ASX (including the securities in section 2 if applicable)

3,178,816,834

Fully paid ordinary shares