SOUTH AFRICA: Kinetiko Energy Spuds 3rd Well on the Korhaan Project

The third well named Korhaan-3 is estimated to reach a depth of 400m-450m to test
the gassy sandstones and coal bed methane (CBM) horizons from the known coal
beds that were intersected and observed to be gassy from adjacent (400m away)
flow tested gas wells KA-03PT2 and KA-03PTR (Figure 1). With three new well of the
Korhaan project now successfully spudded the Company’s expectations are high
that all five wells are intended to become potential early, pilot-production wells,
with comingled production to an infield offtake facility being planned.

Well Korhaan-3 is being drilled with air/ percussion to TD estimated to be between
400-450m. The spudding of Korhaan 3 is the last of the three well Korhaan project
programmed to be completed this year. The three-well drilling program to has been
successfully undertaken within 400 metres of KKO’s proposed gas collection
terminal at Amersfoort where access and infrastructure is being established to
enable the completion of off take negotiations.

The second well named Korhaan-5 spudded in mid November to reach a depth of 400m-450m to
test the gassy sandstones and coal bed methane  horizons from the known
coal beds that were intersected and observed to be gassy from adjacent (400m
away) flow tested gas wells KA-03PT2 and KA-03PTR

Preliminary gas flow rates will be assessed following completion of each well.