Spudding of Historical Puntland Exploration Well

• Spudding of the first of two historical exploration wells, in the Dharoor Valley, Puntland, Somalia
• The first oil exploration well to be drilled in over 20 years in Puntland targeting 300m barrels of recoverable oil
• Initial operations on the Shabeel North-1 well (second exploration well) commenced

Red Emperor Resources NL is pleased to advise that Horn Petroleum Corporation), together with Range Resources Limited, its joint venture partners, have announced the spudding of the Shabeel-1 well on the haroor Block in Puntland, Somalia and is currently
preparing to drill ahead to a total planned maximum depth of 3,800 meters. Drilling operations have also commenced on the Shabeel North-1 well with the
setting of the 30 inch surface casing and the drilling of a 50 meter pilot hole. Red Emperor has an option over the second well over which a decision will be made over the coming period.

The Sakson 501 rig will be used to drill both wells which are expected to take approximately 90 days each for drilling and evaluation. These two wells satisfy
the first exploration period minimum work obligations of the Production Sharing Contracts for both the Dharoor and Nugaal Blocks. They are the first oil
exploration wells to be drilled in over 20 years in the country.

The Shabeel and Shabeel North prospects are located on a Jurassic aged rift system which is part of the same system that has proven to be highly productive
in the Masila and Shabwa Basins in Yemen that contain an estimated 6 billion barrels of oil*. Both prospects are very large fault block prospects with
internal most likely estimates of potential oil volumes of over 300 million barrels of recoverable oil. Source rocks are expected to be rich Jurassic
Kimmeridgian shales in the deep portion of the rift immediately down dip from the Shabeel prospects. Reservoirs are expected to be sandstones and carbonates
of the Lower Cretaceous and Jurassic systems analogous to Yemen.

Red Emperor's Executive Director, Greg Bandy, said: "Red Emperor is delighted to announce to the market such a significant and historic achievement. We wish to firstly acknowledge and pay tribute to our
joint venture partners for the years of hard work and toil that has led to this industry defining event. As well we would also like to thank the Puntland
Government and the people of the Dharoor Valley communities. Whilst we have only been a party to this JV for some 18 months, this day has been nearly 6
years in the making and more than 20 years overdue. We look forward to keeping the market informed of the progress of this landmark well and hope its success
leads to significant benefits for Puntland and its people."

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