Protean Energy : Appendix 3B – Escrow Release and Issue of Shares

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12

Name of entity

Protean Energy Limited

ABN

81 119 267 391

We (the entity) give ASX the following information.

You must complete the relevant sections (attach sheets if there is not enough space).

Ordinary Shares

1+Class of+securities issued or to be issued

Fully paid ordinary shares

3Principal 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)

Yes

1. 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

     N/A

2. Issue price or consideration

3. Consideration Shares for 50% stake in KORID Energy

4. Conversion of Class B Performance Rights

5. Issue of shares pursuant to corporate advisory mandate

6. Purpose of the issue

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

   Yes

   6aIs the entity an +eligible entity that has obtained security holder approval under rule 7.1A?

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

   16 November 2016

   6b The date the security holder resolution under rule 7.1A was passed

   3. 2,060,071

   6cNumber of +securities issued without security holder approval under rule 7.1

   N/A

   6dNumber of +securities issued with security holder approval under rule 7.1A

   1. 189,000,000

   6eNumber of +securities issued with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting)

   2. 4,920,000

   6f Number of securities issued under an exception in rule 7.2

   N/A

   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

   See Annexure 1

   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

   7 March 2017
   Number	+Class
   1,343,744,882	Ordinary shares
   Number	+Class

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

8. Number and +class of all

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

9. Number and +class of all

10. 143,867,062	29/02/2016 Options exercisable
    at $0.0375 on or before 31/12/2018
    12,844,290	Options exercisable at $0.0375 on or before 31/12/2018 held in escrow for two years from

    +securities not quoted on ASX (including the securities in section 2 if applicable)

    5,764,290

    Ordinary shares held in escrow for two years from

    29/02/2016

    4,837,500

    4,000,000

    9,675,000

    8,000,000

    14,512,500

    12,000,000

    Options exercisable at $0.0375 on or before 30/11/2018

    Options exercisable at $0.0375 on or before 30/11/2018 held in escrow for two years from 29/02/2016

    Options exercisable at $0.05 on or before 30/11/2018

    Options exercisable at $0.05 on or before 30/11/2018 held in escrow for two years from 29/02/2016

    Options exercisable at $0.0625 on or before 30/11/2018

    Options exercisable at $0.0625 on or before 30/11/2018 held in escrow for two years from 29/02/2016