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LETTER FROM THE CEO

ASX Announcement | 22 October 2014

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THE NEW TITAN ENERGY

Dear fellow Titan shareholders,
It is my distinct honour to inform you that I will be taking a new role as your CEO after my recent appointment as a Non-Executive Director. This was not a difficult decision once I saw the true potential of our little company. The Titan personnel and Board members have a "fire in their bellies" that I have rarely seen and have experienced in my prior companies. After all, it is not the "size of the dog in the fight" - but the amount of "fight in the dog" that generally determines the outcome. That being the case, Titan has a very bright future ahead.
This is only the second company I have ever personally invested in on the ASX. When I retired from Maverick Drilling one year ago I certainly did not expect to find another "diamond in the rough". Titan has quickly proved me wrong. Developing a junior company with a market cap of less than $10 Million is something I have a good familiarity with. My interest in Titan is not based upon a short-term plan, but a long- term vision of what a small company can accomplish with persistence, an undervalued high quality oil field, great people and a desire to succeed.
Paul Garner, Managing Director is an excellent manager and administrator and will be sharing the role of overseeing the future of Titan. Either Paul or myself will be communicating with and hopefully seeing most of you in the year to come. I expect to visit Australia early in the New Year and personally visit many shareholders, analysts and brokers, both old and new. In the meanwhile, your questions will be promptly answered, should you wish to ask them. You can see from the personal investment and steadfast commitments by Paul and the other board members, that this is a serious commitment to re-building Titan into a powerhouse. We appreciate your continued support and I personally thank you for all of the well wishes and encouragement I have received since coming on board a couple of months ago.
Let's look at the future of Titan, a New Titan, and what we see ahead for our company:

DEFINE WHAT MAKES TITAN STAND APART FROM ITS PEERS. We will begin to develop a persona and image of what Titan does that is different from any other company in our sector. With the enhancement of our operating expertise, a focus on the Texas Gulf Coast, the reactivation of old wells on our Allen Dome property and an acquisition plan for expansion within this core area, it will not take long for shareholders to see where the Company is headed. ALLEN DOME AND ITS OUTSTANDING POTENTIAL. In the past 45 days we have engaged top flight professionals to perform specific analysis of the potential of Allen Dome with highly encouraging results. There are very few, if any, producing salt domes on the Gulf Coast that are as underdeveloped as Allen Dome. This field provides a greater combination of in-field development and low risk - high return drilling than I have seen in any field in my 35 years in the patch. It is not an easy field, but could provide rewards of considerable proportions. FOCUS ON WHAT WE KNOW BEST. In my opinion there is more potential for Titan in our Allen Dome field than all the potential and value of all our other holdings - combined! Therefore, you will see divestitures of the other properties and investments with the specific focus of enhancing an oil field where, unlike the Perth Basin for example, it may take many years to actualise real cash flow, regardless of the resource potential. TAKE CONTROL OF OUR OWN DESTINY. We are refining our focus, cutting out the distractions of other holdings where we do not have control over our destiny and getting on with building our revenues, proven reserves and most of all profits. Titan has suffered some serious losses and setbacks in prior years. We have been at the mercy of waiting for others to control our destiny by virtue of their operating the properties in which we hold interest. Those times are over for Titan. As of now we take control of our own future. BUILD ON OUR STRENGTHS AND EXPAND OUR HOLDINGS IN CORE AREA. Titan will have adequate capital to continue to acquire high quality oil properties, which will serve us well in the years to come. Relative to our small size at present, turning these properties into serious money makers will enhance our overall value considerably. The expertise and expanding team we are building in the US will help us to make our own luck or at least help us increase the odds in our favour. A company such as Titan, in the difficult business of drilling and producing oil wells, does not hit 10 out of 10 every time on our efforts. Sometimes it feels like three steps forward and two steps back. Being right more than being wrong is a good start - and you will follow this journey with us event by event and step by step. This should prove to be an exciting ride in the months to come.

If these are the kind of components you are looking for in your holdings, then you should enjoy remaining a Titan shareholder, encouraging others to join our growing family and get ready for the changes ahead. No company I can think of has more upside potential and commitment to success in its management and board than this one. Many of you are self-made that started with nothing and built something you can be proud of. Titan has been beaten down for quite a while and is one hell of an underdog. Those that like this appeal are the shareholders we are looking for and are proud to have amongst our ranks. There are many others out there that are on their way to becoming Titan shareholders as our successes occur.
In return for being a Titan shareholder we ask that you join us in protecting Titan in the public domain - against the naysayers, the sceptics, and those who would create negative views for lack of anything better to do. We are beginning a marathon, not a sprint! Join Titan and watch our company emerge as we plan to gain on those much larger than us. There are no guarantees here - only the sincere commitment to attack our challenges every day and know that we are working for our shareholders, as we are also shareholders. Lets make this exciting journey together and rebuild this Company into something we will all be very proud to have been a part of. This is my commitment to you as a new member of this family and I promise that you will see the very best of myself and every member of the Titan team.
Yours truly,

Brad Simmons
CEO

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ABN 53 109 213 470

Postal Address PO Box 198 West Perth 6872 Western Australia www. t i t a n e n e r g y . c o m . a u

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