Carbon Energy : Share Purchase Plan - Cleansing Notice

2 October 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

Share Purchase Plan Cleansing Notice

Carbon Energy Limited (ASX: CNX) (Carbon Energy or Company) announces on 2 October 2018 a share purchase plan (SPP) for eligible shareholders to raise up to circa $1.5 million. Under the SPP, the Company invites eligible shareholders to participate by subscribing for up to $15,000 of Carbon Energy ordinary shares at $0.08 per share (New Shares), without incurring any transaction or brokerage costs.

The right to participate in this SPP is available exclusively to eligible shareholders who are on the Company register at 7:00pm (Sydney time) on 1 October 2018 (Record Date) and having a registered address in Australia or New Zealand. The SPP is targeted to close on 22 October 2018.

Under ASIC Class Order 09/425 (CO 09/425), Carbon Energy Limited (ASX: CNX) (Carbon Energy) gives notice that:

• 1. Carbon Energy will make offers to issue ordinary shares under a share purchase plan (SPP) without disclosure under part 6D.2 Corporations Act 2001 (Cth) (Corporations Act);

• 2. this notice is given under CO 09/425 and in particular, paragraph 7(f)(ii) of CO 09/425 which requires that Carbon Energy gives this notice to ASX within the 24 hour period before the SPP offer;

• 3. at the date of this notice, Carbon Energy has complied with:

  • a. the provisions of chapter 2M Corporations Act as they apply to Carbon Energy; and

  • b. section 674 Corporations Act; and

• 4. at the date of this notice, there is no 'excluded information' (within the meaning of sections 708A(7) and 708A(8) Corporations Act, as if this notice were a notice under section 708A(5)(e) Corporations Act).

Further details of the SPP are set out in the SPP Offer Documents lodged with the ASX today and expected to be despatched to eligible shareholders on or about 8 October 2018.

Further information

If you have any questions about the SPP, please contact the offer information line on 1800 992 039 (within Australia) or +61 1800 992 039 (outside Australia) between 8:30am and 5:30pm (Sydney time), Monday to Friday.

For and on behalf of the Board

ENDS

www.carbonenergy.com.au 2