88 Energy Regulatory News (88E)

88 ENERGY LIMITED

ASX LODGEMENT OF ANNUAL REPORT

88 Energy Limited (ASX:88E; AIM:88E) ("88 Energy" or "Company") advises that a copy of the Company's Annual Report for the year ended 31 December 2022 (the "Annual Report") has been lodged on the ASX along with the Company's 2022 year-end Corporate Governance Statement and Appendix 4G.

The Annual Report, which was sent to shareholders today, is available on the Company's website at www.88energy.com along with copies of each of these other documents.

Set out below is the Chairman's Statement as included in the Annual Report.

Also, set out below is a summary of the Company's audited financial information for the year ended 31 December 2022 as extracted from the Annual Report, being:

· Consolidated Statement of Comprehensive Income;

· Consolidated Statement of Financial Position;

· Consolidated Statement of Changes in Equity; and

· Consolidated Statement of Cash Flows.

Media and Investor Relations:

CHAIRMAN'S STATEMENT

Dear Shareholders,

It is with pleasure that I present 88 Energy's Annual Report, which contains details of our exploration activities, operations, and financial position as of 31 December 2022.

The global oil and gas market has undergone several significant changes since I first joined the 88 Energy Board. Throughout the year, the world has transitioned from the initial uncertainty caused by the COVID-19 pandemic to a period of geopolitical instability with the war in Ukraine causing disruptions to energy trade in Europe and beyond. At the same time, global attitudes and changing market sentiment in relation to the clean energy transition and decarbonisation initiatives have led to volatility in the oil and gas market.

This uncertainty has resulted in ongoing tightness in investment in the oil and gas industry. However, I firmly believe that the prevailing macroeconomic, political, and social factors that have contributed to the current global energy challenges demonstrate that hydrocarbons will have a significant role in global energy demand for the foreseeable future.

Within this context, 88 Energy is strategically placed to capitalise on investment opportunities that the oil and gas industry will continue to offer. Our combination of large acreage position, infrastructure-led exploration and ongoing capital discipline is, and will continue to be, attractive.

During the year, we acquired a ~73% working interest in Project Longhorn, a suite of quality oil and gas assets in the proven Texan Permian Basin. To date, the production of oil from these wells has resulted in net cash flow returns of more than A$4 million. Further opportunities exist to grow output and returns from these assets over the coming years.

In August 2022, we announced the decision to separate Project Icewine into two independent prospective resource estimates, Icewine West and Icewine East. Going forward, we are set to focus on Icewine East, renamed Project Phoenix, to reflect our refreshed exploration strategy for the acreage. As a measure of our conviction in the prospectivity of Project Phoenix, in the same month as the announcement of the maiden independent Prospective Resource Estimate for Phoenix, we raised gross proceeds of A$14.9 million to further advance planned exploration well activities on this acreage.

Through third quarter of 2022, we completed an interpretation of the previously licensed Franklin Bluffs 3D seismic survey data on Project Phoenix. Results from the analysis were used to define 'sweet spots' for the Shelf Margin Delta (SMD), Slope Fan System (SFS), Basin Floor Fan (BFF) and Kuparuk (KUP) play fairways. This critical analysis has informed our planned 2023 exploration activities and proposed drilling location, Hickory-1, which is designed to intersect and test up to six stacked conventional reservoirs. In December, we executed a contract with Nordic Calista for their Rig-2 to drill the Hickory-1 exploration well, with targeted spud in early March 2023.

In November 2022, the Company was announced as the winning bidder for select acreage offered as part of the North Slope Areawide 2022W Oil and Gas lease sale. The new acreage, known as Project Leonis, is another fantastic addition to our highly prospective Alaskan asset base. Comprising 10 leases covering approximately 25,600 contiguous acres, Leonis is an attractive exploration proposition, which the Company is eager to progress. Further studies will be conducted to properly understand the regional setting and faulting of the area before making any definitive commitment to a future program of work.

I wish to thank all 88 Energy personnel and contractors for their efforts over the past year. We have a first-class team of truly committed professionals, dedicated to maximising the potential of our projects. We will continue to progress and refine the 88 Energy business model through furthering exploration activities in our core project areas, targeting large-scale hydrocarbon deposition and seeking out new venture opportunities.

As always, I would also like to thank you, our shareholders, for your support and dedication to our Company. On behalf of the 88 Energy team, I wish to reaffirm our commitment to unlocking the huge potential value residing in our world-class Alaskan acreage. I wish you all a wonderful and prosperous year ahead. Stay safe and well.

Yours faithfully,

Philip Byrne Non-Executive Chairman

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022

The notes to the financial Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the statements.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2022

The Consolidated Statement of Financial Position should be read in conjunction with the notes to the financial statements.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE FINANCIAL YEAR ENDED 31 DECMEBER 2022

The Consolidated Statement of Changes in Equity should be read in conjunction with the notes to the financial statements.

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE FINANCIAL YEAR ENDED 31 DECEMEBR 2022

The Consolidated Statement of Cash Flows should be read in conjunction with the notes to the financial statements.