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1 Annual General Meeting 28 May 2015 Dr. David Mestres Ridge, CEO and Managing Director Swala Energy Limited (ASX: SWE)

2 Disclaimer Certain statements contained in this presentation, including information as to the future financial or operating performance of Swala Energy Limited ( Swala or Company ) and its projects, are forward-looking statements. Such forward-looking statements: are necessarily based upon a number of assumptions and estimates that, while considered reasonable by Swala, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements; and may include, among other things, statements regarding targets, estimates and assumptions in respect of production, prices, operating costs, results, capital expenditures, reserves and resources and anticipated flow rates, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. Swala disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to rely on forward-looking statements due to the inherent uncertainty therein. Persons compiling information about hydrocarbons: In accordance with ASX Listing Rules, any geological or hydrocarbon reserves information in this presentation has been reviewed by Swala s New Ventures Manager, Mr Neil Taylor, who has over 30 years experience in the sector. He consents to that information in the form and context in which it appears. Page 2

3 Strong Board and Management Mr. Ken Russell, Non-Executive Chairman Mr. Russell has over 35 years of oil and gas industry experience and he has held a number of managerial roles and directorships in the oil and gas industry. These range from positions of Base Manager through to Managing Director and CEO of listed entities. Mr. Russell was also a founding director of ASX listed companies, Bounty Oil and Gas NL and Key Petroleum Ltd. In parallel with his involvement in the oil and gas industry he has considerable experience, developed over the last 25 + years, in international business having owned and operated a number of privately held companies. Dr. David Mestres Ridge, CEO and Managing Director Dr. Mestres Ridge worked first for Total Oil Marine ( ) and then as an independent M&A and business development advisor to oil companies active in the North Sea and North Africa He was a Vice-President at the Royal Bank of Canada, first in the Global Investment Banking Oil and Gas team and then in the Equity Research team. Dr. Mestres Ridge briefly managed Petrodel Resources, a company active in Tanzania. He also worked with Black Marlin Energy during its IPO on the Toronto Stock Exchange. Dr. Mestres Ridge has a BSc in Applied Geology, an MSc in Mining Geology, a PhD in Chemical Engineering and an LLM in Law. Mr. Peter D. Grant, Non-Executive Director Mr. Grant holds a B.Sc. (Hons.) in Geology from Nottingham University. Mr. Grant has over 40 years' experience in exploration, first gained as a Geophysicist/Party Chief with Seismograph Services Limited. He was then Senior Geophysicist for British Gas before joining BHP Petroleum where he was Exploration Manager in Africa and the Middle East; Project Manager in Myanmar; and General Manager in Yemen. In 1995 Mr. Grant joined Woodside Energy Limited, where he was Exploration Manager N. Australia; International Exploration Manager; General Manager UK; and General Manager International Exploration. He is a National Director with the Arab Australian Chamber of Commerce and Industry, Chairman of the Australia Korea Business Council of Western Australia and President of the Asia/Pacific region for the American Association of Petroleum Geologists. Mr. Ernest Massawe, Non-Executive Director Mr. Massawe is Certified Accountant (ACCA, UK) and holds a Bachelors of Commerce from the then University of East Africa Nairobi. He is the founder as well as the former Chairman and Managing Partner of what is now the Ernst and Young Tanzania practice after having led the firm for the past 30 years until his retirement on 31st December Mr. Massawe is widely respected within the professional and business community in Tanzania, evidenced by his many high profile appointments in the Accountancy profession, Financial services, Mining and Capital Markets sectors. Mr. Mohamed Ishtiaq, Non-Executive Director Mohammed Ishtiaq is a Director of the Hayaat Group, a private investment company headquartered in Abu Dhabi that holds a substantial shareholding in Swala Energy Limited. Mr Mohammed Ishtiaq worked for British Aerospace in the defence industry for 6 years following graduation from Leeds Metropolitan University. He then moved to the Fast Moving Consumer Goods ("FMCG") sector building a career over 25 years and where at a senior level specialising in retail and wholesale development concepts he conducted extensive evaluation of markets in the Middle East. Throughout the last 15 years Mohammed Ishtiaq has been involved with very successful large commercial and development projects in the property sector, something that he was able to achieve through an ability to build strong relationships with stakeholders and joint venture partners. Mr. Neil C. Taylor, New Ventures Manager Mr. Taylor is the former Exploration Manager of East African Exploration Limited ("EAX"), Black Marlin Energy's E&P subsidiary. A geologist by background, Mr. Taylor has over 30 years of experience in the oil and gas business with internationally renowned E&P companies including British Petroleum and Woodside Energy. Through his time with those companies Mr. Taylor has been involved with or led exploration and production activities world-wide. Mr. Taylor joined EAX in 2008 with the remit of growing the company's asset base, and added six new licences to EAX's portfolio during his tenure. Page 3

4 CORPORATE OVERVIEW Corporate Structure SWALA ENERGY LIMITED (AUSTRALIA) (ASX:SWE) 100% SWALA ENERGY LIMITED (BRITISH VIRGIN ISLANDS) 100% 93.0% 100% 58.5% (1) SWALA ENERGY (KENYA) LIMITED SWALA ENERGY (ZAMBIA) LIMITED SWALA ENERGY (UGANDA) LIMITED SWALA OIL & GAS (TANZANIA) PLC (KENYA) (ZAMBIA) (UGANDA) (TANZANIA) Block 12B (50%) Block 44 (100%) Kilosa-Kilombero (50%) Pangani (50%) (1) Swala Oil & Gas (Tanzania) Plc listed on the Dar es Salaam Stock Exchange in 3Q Page 4

5 Current Capital Structure 1st December th May 2015 Shares in issue 153,758, ,442,049 Performance shares 15,000,000 15,000,000 Options 8,700,000 8,700,000 Fully diluted share capital 177,458, ,142,049 Held by Top 20 94,671,260 (61.6%) 93,127,511 (58.8%) DILUTION SINCE % Shares held in Share parcels held Page 5

6 Trading characteristics over the past six months Page 6

7 Relatively small number of shares on issue issued Fully-diluted Page 7

8 Tanzania Page 8

9 Tanzania, Kilosa-Kilombero: Licence Overview Current Licence Interests Kilosa-Kilombero Location Map Swala Oil & Gas (Tanzania) plc 50% (Operator) Otto Energy Tanzania Limited 50% *Note: Swala Energy own 58.5% of SOGTP Remaining Commitments Initial Exploration Period ( ) Year Minimum Expenditure Work Program Status Year 4 US$ 6.0 m 12B Processing of 2D Drill a well to a maximum of 3,000m or basement 1 st Additional Period ( ) Current JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Interpretation & evaluation Year 5-8 US$ 12.0 m Drill a well to 3,000m or basement Well planning & LLI for 2016 well TBC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC PANGANI Processing of 2D seismic Interpretation and evaluation, drilling selection Well planning & LLI for 2016 well JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC KILOSA-KILOMBERO Processing of 2D seismic Interpretation and evaluation, drilling Well planning & LLI for 2016 well LLI = Long Lead Items Page 9

10 Tanzania, Kilosa-Kilombero 1970 s Getech Magnetic data, reprocessed by Southern Geoscience Consultants 2012 Gravity & Magnetic surveys 2013 Seismic data: km over Kilombero km over Kilosa km over Kidatu 2014 Seismic data: km 2D shot over the Kilombero Basin Geochemical and field study work 3rd party technical work undertaken by RISC Page 10

11 Kilombero Basin Lokichar String of Pearls Kilosa-Kilombero Lokichar Basin (Kenya) Page 11

12 Robust structure in Kito Robust roll-over structure into basement footwall No evidence of crestal faulting or trap breach Possible brightening over crest. Page 12

13 Kito Prospect amplitude anomalies to structure Page 13

14 Kidatu Basin, Ngaza Lead W E Kidatu Line 8 S N Extensional structure with significant regional uplift, potentially uplifted Karoo Large closure mapped over Kidatu Lines 8 Kidatu-3 was shot to confirm closure of the structure to the South Kidatu Line 3 Areal extent of km2 Page 14

15 Tanzania, Pangani: Licence Overview Current Licence Interests Pangani Location Map Swala Oil & Gas (Tanzania) plc 50% (Operator) Otto Energy Tanzania Limited 50% *Note: Swala Energy own 58.5% of SOGTP Remaining Commitments Initial Exploration Period ( ) Year Minimum Expenditure Work Program Status Year 4 US$ 6.0 m Drill a well to a maximum of 3,000m or basement 1 st Additional Period ( ) Current Year 5-8 US$ 12.0 m Drill a well to 3,000m or basement TBC Page 15

16 Tanzania, Pangani Legacy satellite gravity and Geotech magnetic data 2012 Aeromagnetic data 5400 line km of magnetics and 3050 line km of gravity data 2012 Thematic LandSat areal imaging covering the whole licence area 200 km of 2D seismic lines shot in 2013, over two key focus areas Moshi Basin (126 km) and the Mvungwe Basin (74 km) 200 km of 2D seismic shot in 2014 over the Moshi Basin 2013 Seismic Survey Area Page 16

17 Tanzania, Pangani Moshi Basin Leads Rollover fault identified on the eastern end of several dip lines. North South closure not yet confirmed. Page 17

18 Tanzania, Pangani Moshi Basin Lead A Subtle shallowing towards the East The high may continue to develop into a bounding fault towards the South. Page 18

19 Tanzania, Pangani Moshi Basin Leads B and C Page 19

20 Dar Listing Swala Energy Limited originally owned 100% of Swala Oil and Gas (Tanzania) plc. 10% set aside for local trust. Listing in August 2014 on the Dar es Salaam Stock Exchange 2,000 new local investors Swala Energy Limited retains 58.5% equity. The former President of Tanzania, H.E. Ali Hassan Mwinyi, ringing the bell at the IPO of Swala Oil & Gas (Tanzania) Plc. Page 20

21 Kenya Page 21

22 Kenya, Block 12B Current Licence Interests Tullow Oil Kenya BV 50% (Operator) Swala Energy (Kenya) Limited 50% Block 12B Location Map Year 3-4 US$ 6.0 m Current commitments 1 st Additional Period ( ) New 3D seismic or one exploration well to at least 2000 m Current Page 22

23 Kenya, Block 12B, regional geological setting Block 12B Simplified Geological Map Block 12B Free Air Ground Gravity Map Dominant geological feature in 12B is the Nyanza Rift, an offshoot of the main EARS Field work and photo-geology evaluation indicate the presence of two large escarpments dipping into the basin centre The general structure is well imaged by the Free Air gravity survey, which illustrates the main EARS and the Nyanza Rift A dominant gravity low is located to the east of Lake Victoria, which is assumed to be the basin depo-centre Page 23

24 Kenya, Block 12B Regional Geological Setting North South Shallow Volcanics Top Basement? Basement Basement Sediment Fill or multiples? Line 109 Basin bounding fault just to the west of Lake Victoria Basin fill thinning to the east possible Neogene, syn-rift sediment package Depth to basement unknown, passive seismic used to help delineate Page 24

25 KENYA, BLOCK 12B Leads and Prospects Ahero A D Seismic 350km dynamite acquisition 10 Leads identified Ahero-A identified as possible 2016 drill candidate (Ahero-A + Ahero-A Deep) Ahero-A 55.0 mmbbls mean recoverable (gross, unrisked). Operator (Tullow Oil (Kenya) BV) estimates, Ahero A Final processing completed Q Page 25

26 Interim leads and prospects portfolio Leads and Prospects STOIIP (mmboe) Prospective Resources (mmboe) Leads / Prospect P90 P50 P10 Mean P90 P50 P10 Mean Kendu A Kendu B Kendu C Ahero A Ahero A Deep Ahero B Ahero C North Ahero A North Ahero B South Ahero A Total , Volumes net (50%) and unrisked; Probabilistic volumetric calculations with significant upside (P10 STOIIP > 4.9 bn barrels). Operator ((Tullow Oil (Kenya) BV) estimates, July Page 26

27 Outlook and Opportunities 2015 focus on the East African Rift System Upcoming licence rounds in Uganda with some individual licence awards in other countries. Focus changing from direct negotiations to a combination of direct negotiations and industrial M&A. Currently in discussions with a number of companies as part of that M&A strategy. A number of regionally-active companies are either open to deals or are vulnerable in today s low oil price environment. Will develop the asset base in parallel with the development of the local content approach that has helped us so far. After 2015, New Ventures focus likely to look beyond the East African Rift System. Page 27

28 Opportunity Summary Significant exposure to the East African Rift System 2016 drilling programme in three licences Local presence giving competitive advantage Active business development pipeline Experienced management and board of directors Committed cornerstone investors Page 28

29 Prospective Resources There is no certainty that any discovered resources referred to in this presentation will be commercially viable to produce. There is no certainty that any portion of the undiscovered resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. Risks associated with discovering oil: The estimation of prospective resource volumes for high-risk and poorly calibrated basins can be subject to large variation from the introduction of new information. The estimates presented herein are based on all of the information available at the effective date of the resource estimate. New data or information is likely to have a material effect on the resource assessment values. Whilst additional exploration work will be undertaken, there is no certainty that any additional resources will be discovered. Once discovered, there is no certainty that the discovery will be commercially viable to produce any portion of the resources. It s likely that significant changes to the resource estimates will occur with the incorporation of additional data and information. Risk Associated with the Estimates: In the event of a discovery, basic reservoir parameters, such as porosity, net hydrocarbon pay thickness, fluid composition and water saturation, may vary from those assumed by the Company s independent third party resource evaluator affecting the volume of hydrocarbon estimated to be present. Other factors such as the reservoir pressure, density and viscosity of the oil and solution gas/oil ratio will affect the volume of oil that can be recovered. Additional reservoir parameters such as permeability, the presence or absence of water drive and the specific mineralogy of the reservoir rock may affect the efficiency of the recovery process. Recovery of the resources may also be affected by well performance, reliability of production and process facilities, the availability and quality of source water for enhanced recovery processes and availability of fuel gas. There is no certainty that certain mineral interests are not affected by ownership considerations that have not yet come to light. Substantial Capital Requirements: Swala expects to make significant capital expenditures for exploration activities in the future. The Company's ability to access the equity or debt markets may be affected by any prolonged market instability. The inability to access the equity or debt markets for sufficient capital, at acceptable terms and within required time frames, could have a material adverse effect on the Company's financial condition, results of operations and prospects. Ability to Execute Exploration and Development Program: It may not always be possible for Swala to execute its exploration and development strategies in the manner in which the Company considers optimal. Execution of exploration and development strategies is dependent upon the political and security climate in the host countries where the Company operates and agreement amongst the Company joint venture partners. The Company's exploration and development programs in East Africa may involve the need to obtain approvals from relevant authorities who may require conditions to be satisfied or the exercise of discretion by the relevant authorities. It may not be possible for such conditions to be satisfied. Absence of a Formal Development Plan including Required Funding: There is no certainty the Company will prepare and have approved a development plan for any portion of the contingent resources or that the Company will be successful in funding any development should such a plan be prepared. General market conditions, the sufficiency of such a development plan and the outlook regarding oil and gas prices are some factors that will influence the availability of funding or the Company s ability to attract oil and gas industry partners to participate in the project. Access to Infrastructure: Currently there is limited local infrastructure for the production and distribution of oil and gas in the countries in which Swala operates. Export infrastructure to enable other markets to be accessed has not yet been developed and is contingent on numerous factors including, but not limited to, sufficient reserves being discovered to reach a commercial threshold to justify the construction of export pipelines and agreement amongst various government agencies regulating the transportation and sale of oil and gas. Additional Risks: Additional risks associated with the estimate of the prospective and contingent resources include risks associated with the oil and gas industry generally (i.e. financing; operational risks in exploration, development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections related to production; costs and expenses; health, safety, security and environmental risks; and the uncertainty of resource estimates), drilling equipment availability and efficiency, the ability to attract and retain key personnel, the risk of commodity price and foreign exchange rate fluctuations, the uncertainty associated with dealing with governments and obtaining regulatory approvals, and the risk associated with international activities. Page 29

30 For further information please contact: Swala Energy Limited David Mestres Ridge (CEO) T: david.mestres@swala-energy.com Walbrook Investor Relations Ben Knowles T: M: ben.knowles@walbrookir.com.au Page 30