American Patriot Oil & Gas : December 2018 Quarterly Activities Report

MARKET ANNOUNCEMENT

Quarterly Report

DECEMBER QUARTER ACTIVITIES REPORT

Melbourne, January 31, 2019, American Patriot Oil and Gas Ltd ("AOW") ") is pleased to present its quarterly activities report for the period ending 31 December 2018.

Key highlights of these actions are:

Quarterly production of 9,877bbl oil and 74,260 mcf gas (net AOW)

Net Cash Flow of AUD $471,144 (101% increase from previous quarter)

CEO Relocation to USA

Director Changes Foothills Update

We set out additional details below.

Quarterly Production

The December quarterly results have resulted in total production of 9,877 bbl oil and 74,260 mcf gas or 250 boepd net to AOW and net cash flow of $471,144. The December quarterly results represent a 542% increase in production and 101 % increase in net cash flow from the September quarterly results. Importantly these results only include two months of production from the recently closed Peak Energy and Magnolia/Burnett transactions and the Peak Energy net cash flow which will be received from January 2019 onwards.

Based on these results AOW is projecting net cash flow for the next 12mths will cover all costs (including administration and production costs) and loan repayments. AOW ended the year with December monthly production at 310 boepd which is in line with our forecast production increase following the closing of these deals. AOW is also working to streamline operations and reduce company overheard and corporate costs and the results from these efficiencies will be delivered in the coming months.

These results demonstrate the transformation of American Patriot into a significant conventional oil and gas production business. Continuing growth in production and cash flow is expected from in the coming months from the recently commenced capex programme on the assets with the results starting to come through in December. The full results are detailed below:

Asset	Net Production (Quarter)		Net Cash Flow (AUD)*
Oil (bbl)	Gas (mcf)
Anasazi	1591	8059	$77,683
Goose Creek	927	$3,069
CWS	769	$36,715
Peak Energy**	1463	14493
Magnolia	1093	28431	$84,611
Burnett	4034	23277	$269,065
Total	9,877	74,260	$471,144

*Net Cash Flow is net cash receipts related to October to December production and includes two months of net cash flow from the recently closed Magnolia/Burnett transactions **Peak Energy net cash flow will be received from January 2019 onwards

American Patriot Oil and Gas Ltd	Level 1, 23 Oxford Street Oakleigh Vic 3166
ACN: 154 049 144	Ph: [phone] Fax: [phone]
Email:[e-mail] website:www.ap-oil.com	1

Quarterly Production and Net Cash Flow Trend

Operational Update

Operationally the Peak Energy and the Magnolia / Burnett assets have now settled and are operational with a workover programme on the assets underway. We are currently undertaking 10 workovers during the next 6 weeks and this is expected to deliver additional production of 20 to 30 boepd net to AOW. We will update the market on this programme as results come to hand. The programme consists of a number of low cost capex workovers and equipment repair operations on the wells ranging in capex from USD$10-30k.

Director/Management Changes

CEO Relocation

The Board has been actively reviewing the capability and capacity of the group to operate the business as it transitions to a full producer status in the USA. Given the operations are predominately based in the USA, it makes sense for the CEO role to be based there, in light of this the CEO, Alexis Clark is relocating to Texas in February 2019 to be on the ground to manage the growing operations of American Patriot Oil and Gas.

Appointment of Richard Cooney

During the quarter the Board of AOW announced the appointment of Mr Richard Cooney as a Non-Executive Director of American Patriot Oil and Gas Ltd (AOW). Richard is a co-founder of Boutique Fund Manager - OPP Cap who are focused on identifying founders and businesses with high growth potential across the investment universe. Richard was an early stage investor in American Patriot Oil and Gas and brings to the table significant investment knowledge as well as expertise in building a growing business. This experience will be critical for AOW as it continues to develop a significant conventional oil and gas production business in 2019.

Further board changes and new appointees are expected to be made throughout the course 2019 in the line with the significant transformation of American Patriot Oil and Gas into a significant on shore US production company and the skills and capabilities required to ensure this Is well managed.

Foothills Settlement

AOW is working to finalise the settlement of the last remaining asset ("Foothills assets"). Due diligence has been completed and we have negotiated an extended settlement time frame to complete the transaction. AOW is working with a number of funding partners to ensure the optimal funding structure and will update the market in the near term on the timetable to close this transaction in early 2019.

-ENDS-

American Patriot Oil and Gas Ltd	Level 1, 23 Oxford Street Oakleigh Vic 3166
ACN: 154 049 144	Ph: [phone] Fax: [phone]
Email:[e-mail] website:www.ap-oil.com	2

Investor inquiries:	Media inquiries:
Alexis Clark	Luke Derbyshire
Chief Executive Officer	Managing Director
American Patriot Oil & Gas Ltd	Spoke Corporate Pty Ltd
(613) 9945 8739	(614) 488 664 246
[e-mail]	[e-mail]
About American Patriot Oil and Gas

American Patriot Oil and Gas (AOW) is an oil and natural gas exploration and development (E&P) group headquartered in Melbourne, Australia, with a U.S. office in Houston, Texas. The Company is focused on developing a significant conventional oil and gas production company focused on assets in the Texas and Gulf Coast region. The company has announced a number of recent acquisitions with a focus on acquiring conventional producing properties with low operating costs onshore USA with reserve reports and significant production upside via shut in wells, workover potential, behind pipe potential and infill drilling upside.

American Patriot Oil and Gas Ltd	Level 1, 23 Oxford Street Oakleigh Vic 3166
ACN: 154 049 144	Ph: [phone] Fax: [phone]
Email:[e-mail] website:www.ap-oil.com	3