Interra Resources : Unaudited Financial Statement for 1H 2020

INTERRA RESOURCES LIMITED

Company Registration No. 197300166Z

SGX ANNOUNCEMENT

Counter Name: Interra Res (Code: 5GI)

13 August 2020

Dear Shareholders,

UNAUDITED RESULTS FOR THE FIRST HALF-YEAR ENDED 30 JUNE 2020 ("1H 2020")

Highlights in 1H 2020

• Revenue for 1H 2020 was US$5.43 million, 28% lower than the second half-year ended 31 December 2019 ("2H 2019"). The decrease was due mainly to lower weighted average transacted oil prices of US$40.83 per barrel for 1H 2020 (2H 2019: US$62.08 per barrel) despite higher sales of shareable oil of 168,364 barrels for 1H 2020 (2H 2019: 154,673 barrels).
• Net loss for 1H 2020 was US$0.82 million, as compared to net loss for 1H 2019 of US$1.54 million.
• Earnings before divestment gain, interest income, exchange difference, finance cost, tax, depreciation, amortisation, allowance and impairment (EBITDA) for 1H 2020 was US$1.55 million.
• Net cash inflow for 1H 2020 was US$2.30 million, due mainly to net cash provided by operating activities of US$1.66 million and net proceeds from issuance of new ordinary shares of US$2.02 million through placement exercise offset by net cash used for capital expenditure of US$1.20 million and exploration and evaluation costs of US$0.19 million.
• Cash and cash equivalents were US$5.08 million as at 30 June 2020.

Yours sincerely,

The Board of Directors

Interra Resources Limited

About Interra

Interra Resources Limited, a Singapore-incorporated company listed on SGX Mainboard, is engaged in the business of petroleum exploration and production (E&P). Our E&P activities include petroleum production, field development and exploration. We are positioning ourselves to become a leading regional independent producer of petroleum.

Interra Resources Limited 1 Grange Road #05-04 Orchard Building Singapore 239693 Tel [phone] Fax [phone] www.interraresources.com

INTERRA RESOURCES LIMITED

(Incorporated in the Republic of Singapore)

(Company Registration No. 197300166Z)

UNAUDITED RESULTS FOR THE FIRST HALF-YEAR

ENDED 30 JUNE 2020

		TABLE OF CONTENTS
Item No.		Description		Page No.
1(a)(i)		Profit or Loss & Statement of Comprehensive Income		2 - 3
1(a)(ii)		Explanatory Notes to Profit or Loss		4
1(b)(i)		Statement of Financial Position & Explanatory Notes to Statement of Financial Position		5 - 7
1(b)(ii)		Borrowings and Debt Securities		7
1(c)		Statement of Cash Flows		8
1(d)(i)		Statement of Changes in Equity		9 - 10
1(d)(ii)		Share Capital		10
1(d)(iii)		Ordinary Shares (Excluding Treasury Shares and Subsidiary Holdings)		10
1(d)(iv)		Treasury Shares		10
1(d)(v)		Subsidiary Holdings		10
2 & 3		Audit or Review		10 - 11
4 & 5		Accounting Policies and Methods of Computation		11
6		Earnings Per Share		12
7		Net Asset Value Per Share		12
8(i)		Performance Review		13 - 14
8(ii)		Use of Proceeds		15
8(iii)		Segmented Revenue and Results		15
9 & 10		Prospect Statement & Commentary		16
11 & 12		Dividend, Dividend Statement & Reasons		16
13		Interested Party Transactions		16
14		Confirmation by the board of directors pursuant to Rule 705(5)		17
15		Confirmation Pursuant to Rule 720(1)		17
16		Abbreviations		18
Appendix A		Production, Development & Exploration Activities Report

Page 1 of 18

1(a)(i)	PROFIT OR LOSS
		Group		Note		1H 2020		1H 2019		Change
						US$'000		US$'000		%
		Revenue		A1		5,427	8,094		↓ 33
		Cost of production		A2		(4,806)	(4,828)		-
		Gross profit				621	3,266		↓ 81
		Other income, net		A3		373	281		↑ 33
		Administrative expenses				(1,343)	(1,698)		↓ 21
		Finance expenses				(64)	(47)		↑ 36
		Other expenses		A4		(100)	(100)		-
		Impairment and allowances		A5		-	(624)		↓ 100
		Share of losses of associated companies				-	(2,417)		↓ 100
		Loss before income tax				(513)	(1,339)		↓ 62
		Income tax expense		A6		(305)	(200)		↑ 53
		Loss for the financial period								↓ 47
					(818)	(1,539)
		Attributable to:
		Equity holders of the Company				(783)	(1,491)
		Non-controlling interests				(35)	(48)
						(818)	(1,539)
		Losses per share attributable to equity
		holders of the Company
		Basic losses per share (US cents)				(0.131)	(0.255)
		Diluted losses per share (US cents)				(0.131)	(0.255)

Page 2 of 18

1(a)(i)	STATEMENT OF COMPREHENSIVE INCOME
		Group		Note		1H 2020	1H 2019		Change
						US$'000	US$'000		%

Total loss for the financial period

Other comprehensive (loss)/income, net of tax Items that may be reclassified subsequently to

profit or loss:

Share of currency translation differences of associated companies

Currency translation differences arising from consolidation

Items that will not reclassified subsequently to profit or loss:

Share of defined benefit obligation re-measurements of associated companies

Total comprehensive loss for the financial period

Attributable to:

Equity holders of the Company

Non-controlling interests

• denotes increase
  ↓ denotes decrease

NM	denotes not meaningful

(818)

(1,539)

↓ 47

-	33	↓ 100
(40)	(1)	NM

-		2	↓ 100
(40)		34
(858)	(1,505)	↓ 43

1. (1,457)

(35)(48)

1. (1,505)

Page 3 of 18

1(a)(ii)

EXPLANATORY NOTES TO PROFIT OR LOSS

Group

Group's share of shareable oil production

Group's sales of shareable oil

Group

A1 Revenue

Sale of oil and petroleum products

A2 Cost of production

Production expenses

Amortisation of producing oil and gas properties Amortisation of intangible assets Depreciation of right-of-use assets

A3 Other income, net

Interest income

Petroleum services fees

Grant income

Currency translation gain/(loss), net

Others

A4 Other expenses

Depreciation of property, plant and equipment Depreciation of right-of-use assets

A5 Impairment and allowances

Loss allowances

A6 Income tax expense

Current income tax expense

Prior year under/(over) provision of current income tax

1H 2020	1H 2019
barrels	barrels

168,364 159,794

168,364 159,794

1H 2020	1H 2019
US$'000	US$'000

5,4278,094

3,5864,010

981646

172172

67-

4,8064,828

142148

137133

53-

33(8)

88

373281

56

9594

100100

-624

-624

284425

1. (225)

1. 200

Page 4 of 18

1(b)(i)	STATEMENT OF FINANCIAL POSITION
						Group			Company
				Note		30-Jun-20	31-Dec-19		30-Jun-20		31-Dec-19
						US$'000	US$'000		US$'000		US$'000
	Assets
	Non-current assets
	Property, plant and equipment				5			10		5	10
	Right-of-use assets		B1		247			409		138	204
	Producing oil and gas properties		B2		10,263			10,041		-	-
	Exploration and evaluation costs		B3		13,687			13,498		-	-
	Intangible assets		B4		2,619			2,791		-	-
	Investments in subsidiary corporations				-			-		19,062	19,062
	Investments in associated companies		B5		-			-		-	-
	Other receivables		B7		4,255			4,060		11,437		11,215
						31,076			30,809		30,642	30,491
	Current assets
	Inventories		B6		3,742			4,069		-	-
	Trade and other receivables		B7		1,421			2,460		46	36
	Other current assets				175			209		62	81
	Cash and cash equivalents		B8		5,081			2,777		2,043	377
						10,419			9,515		2,151	494
	Total assets				41,495			40,324		32,793	30,985
	Liabilities
	Non-current liabilities
	Other payables		B9		1,326			1,295		-	-
	Lease liabilities		B10		17			117		7	77
						1,343			1,412		7	77
	Current liabilities
	Trade and other payables		B9		3,511			3,642		11,301	11,136
	Lease liabilities		B10		235			306		133	135
	Borrowings				1,000			1,000		1,000	1,000
	Current income tax liabilities				4,295			4,290		21	-
						9,041			9,238		12,455	12,271
	Total liabilities				10,384			10,650		12,462	12,348
	Net assets				31,111			29,674		20,331	18,637
	Equity
	Share capital				75,157			72,873		75,157	72,873
	Accumulated losses				(30,762)			(29,979)		(55,039)	(54,507)
	Other reserves				(16,262)			(16,164)		213	271
	Equity attributable to equity
		holders of the Company				28,133			26,730		20,331	18,637
	Non-controlling interests				2,978			2,944		-	-
	Total equity				31,111			29,674		20,331	18,637

Page 5 of 18

1(b)(i)

EXPLANATORY NOTES TO STATEMENT OF FINANCIAL POSITION

Group

B1 Right-of-useassets

Property

Motor vehicles

Office equipment

Heavy equipment and machinery

B2 Producing oil and gas properties

Development tangible assets

Development intangible assets

B3 Exploration and evaluation costs

Exploration and evaluation assets

Participating rights of exploration assets

B4 Intangible assets

Patent rights

Computer software

B5 Investments in associated companies

Equity investment at costs

Share of losses in associated companies

Share of other comprehensive income in associated companies

Allowance for impairment of investment in associated company

B6 Inventories

Consumable inventories

B7 Trade and other receivables

Non-current

Loan to non-related parties

Current

Trade receivables - non-related parties

Other receivables - non-related parties

Loan to associated companies

Less: Loss allowances

30-Jun-20		31-Dec-19
US$'000		US$'000
180	267
16	22
9	10
42	110
247		409
851	809
9,412	9,232
10,263	10,041
12,252	12,063
1,435	1,435
13,687		13,498
2,610	2,778
9	13
2,619		2,791
12,191	12,191
(10,149)	(10,149)
96	96
(2,138)	(2,138)
-		-
3,742	4,069

4,255	4,060
1,238	2,286
151	143
656	655
2,045	3,084

1. (624)
   1,4212,460

5,6766,520

Page 6 of 18

1(b)(i)

EXPLANATORY NOTES TO STATEMENT OF FINANCIAL POSITION (CONT'D)

Group

B8 Cash and cash equivalents

Cash at bank and on hand

Short-term fixed deposits

B9 Trade and other payables

Non-current

Other payables - non-related party

Other payables - related party

Current

Trade payables - non-related parties

Trade payables - related parties

Other payables - non-related parties

Accruals

B10 Lease liabilities

Non-current

Current

1(b)(ii)

BORROWINGS AND DEBT SECURITIES

30-Jun-20		31-Dec-19
US$'000		US$'000
1,581	1,777
3,500	1,000
5,081		2,777
936	905
390	390
1,326	1,295
1,058	1,271
199	333
1,779	1,664
475	374
3,511	3,642
4,837		4,937
17	117
235	306
252		423

Group		30-Jun-20		31-Dec-19
		Secured	Unsecured		Secured	Unsecured
		US$'000	US$'000		US$'000	US$'000
Amount repayable in one year or less, or on demand
- Bank loan		-	1,000		-	1,000

The unsecured bank loan of US$1.00 mil represents a bank loan from United Overseas Bank Limited ("UOB") to finance the Company's working capital. The interest is charged at 3.77% per annum for a tenor period of 2 months.

Page 7 of 18

1(c)	STATEMENT OF CASH FLOWS
		Group		Note		1H 2020		1H 2019
						US$'000		US$'000
		Cash Flows from Operating Activities
		Net loss				(818)	(1,539)
		Adjustments for non-cash items:
		Income tax expense				305	200
		Share of losses of associated companies				-	2,417
		Depreciation of property, plant and equipment				5	6
		Depreciation of right-of-use assets				162	94
		Amortisation of producing oil and gas properties				981	646
		Amortisation of intangible assets				172	172
		Interest income				(142)	(148)
		Loss allowances				-	624
		Interest on borrowings				21	35
		Interest on lease liabilities				11	12
		Unwinding of interest-free loan				32	-
		Unrealised currency translation gains				(33)	(10)
		Operating profit before working capital changes				696	2,509
		Changes in working capital
		Inventories				327	(415)
		Trade and other receivables and other current assets				1,073	(394)
		Trade and other payables				(132)	2,142
		Cash generated from operations				1,964	3,842
		Income tax paid				(300)	(440)
		Net cash provided by operating activities				1,664	3,402
		Cash Flows from Investing Activities
		Interest received				2	36
		Additions to producing oil and gas properties				(1,203)	(2,518)
		Additions to exploration and evaluation assets				(189)	(139)
		Net cash used in investing activities				(1,390)	(2,621)
		Cash Flows from Financing Activities
		Interest paid				(32)	(47)
		Proceeds from issuance of new ordinary shares pursuant to
		share option plan, net of issuance costs				206	-
		Proceeds from issuance of new ordinary shares pursuant to
		private placement, net of issuance costs				2,020	-
		Principal elements of lease payments				(164)	(91)
		Net cash provided by/(used in) financing activities				2,030	(138)
		Net increase in cash and cash equivalents				2,304	643
		Cash and cash equivalents at beginning of financial period				2,777	6,638
		Cash and cash equivalents at end of financial period				5,081	7,281

Page 8 of 18

1(d)(i)	STATEMENT OF CHANGES IN EQUITY
	Group				Currency				Share						Non-
				Share		Translation		Special		Option		Accumulated				Controlling
				Capital		Reserve		Reserve		Reserve		Losses		Total		Interests		Total Equity
				US$'000		US$'000		US$'000		US$'000		US$'000		US$'000		US$'000		US$'000
	Balance as at 1 Jan 2020		72,873	110	(16,545)	271	(29,979)		26,730		2,944		29,674
	Net loss for 1H 2020		-	-	-	-	(783)		(783)		(35)		(818)
	Other comprehensive loss
	Currency translation differences		-		(40)		-		-		-		(40)		-		(40)
	Total comprehensive loss for 1H 2020		-	(40)	-	-	(783)		(823)		(35)		(858)
	Additional increase of non-controlling
		interests in subsidiary corporation		-	-	-	-	-		-		69		69
	Issuance of new ordinary shares pursuant
		to share option plan		264	-	-	(58)	-		206		-		206
	Issuance of new ordinary shares pursuant
		to private placement		2,024	-	-	-	-		2,024		-		2,024
	Share issue expenses		(4)	-	-	-	-		(4)		-		(4)
	Total transactions with owners,
		recognised directly in equity		2,284		-		-		(58)		-		2,226		69		2,295
	Balance as at 30 Jun 2020		75,157	70	(16,545)	213	(30,762)		28,133		2,978		31,111
						Currency				Share						Non-
				Share		Translation		Special		Option		Accumulated				Controlling
				Capital		Reserve		Reserve		Reserve		Losses		Total		Interests		Total Equity
	Group		US$'000		US$'000		US$'000		US$'000		US$'000		US$'000		US$'000		US$'000
	Balance as at 1 Jan 2019		72,738	105	(16,545)	301	(29,503)		27,096		2,061		29,157
	Net loss for 1H 2019		-	-	-	-	(1,491)		(1,491)		(48)		(1,539)
	Other comprehensive income/(loss)
	Currency translation differences		-	(1)	-	-	-		(1)		-		(1)
	Share of currency translation differences
		of associated companies		-	33	-	-	-		33		-		33
	Share of defined benefit
		obligation re-measurements
		of associated companies		-	-	-	-	2		2		-		2
	Total comprehensive income/(loss)
		for 1H 2019		-	32	-	-	(1,489)		(1,457)		(48)		(1,505)
	Additional increase of non-controlling
		interests in subsidiary corporation		-	-	-	-	-		-		69		69
	Total transactions with owners,
		recognised directly in equity		-		-		-		-		-		-		69		69
	Balance as at 30 Jun 2019		72,738	137	(16,545)	301	(30,992)		25,639		2,082		27,721

Page 9 of 18

1(d)(i)	STATEMENT OF CHANGES IN EQUITY (CONT'D)
						Share
				Share		Option		Accumulated
				Capital		Reserve		Losses		Total Equity
	Company		US$'000		US$'000		US$'000		US$'000
	Balance as at 1 Jan 2020		72,873	271	(54,507)		18,637
	Total comprehensive loss for 1H 2020		-	-	(532)		(532)
	Issuance of new ordinary shares pursuant to share option plan		264	(58)	-		206
	Issuance of new ordinary shares pursuant to private placement		2,024	-	-		2,024
	Share issue expenses		(4)		-		-		(4)
	Balance as at 30 Jun 2020		75,157		213		(55,039)		20,331
	Balance as at 1 Jan 2019		72,738	301	(42,935)		30,104
	Total comprehensive loss for 1H 2019		-	-	(11,039)		(11,039)
	Balance as at 30 Jun 2019		72,738	301	(53,974)		19,065
1(d)(ii)	SHARE CAPITAL

On 10 Jan 2020, an aggregate of 4,630,000 ordinary shares were issued at the exercise price of S$0.060 per share pursuant to 2017 Options granted under the Share Option Plan. These newly issued ordinary shares ranked pari passu in all respects with the existing ordinary shares.

On 9 Jun 2020, an aggregate of 62,500,000 new ordinary shares were issued by a way of a private placement at an issue price of S$0.045 per subscription price with aggregate subscription price of S$2.81 mil (equivalent to US$$2.02 mil). These newly issued ordinary shares ranked pari passu in all respects with the existing ordinary shares.

The number of ordinary shares comprised in the options granted and outstanding under the Interra Share Option Plan as at 30 Jun 2020 was 16,975,000 (31 Dec 2019: 21,605,000).

	The Company does not have any treasury shares or subsidiary holdings as at 30 Jun 2020 and 31 Dec 2019.
1(d)(iii)	ORDINARY SHARES (EXCLUDING TREASURY SHARES AND SUBSIDIARY HOLDINGS)
	Group and Company		30 Jun 2020		31 Dec 2019
	Issued and fully paid
	Opening balance		588,368,604	585,973,604
	Issuance of new ordinary shares pursuant to share option plan		4,630,000	2,395,000
	Issuance of new ordinary shares pursuant to private placement		62,500,000	-
	Closing balance		655,498,604	588,368,604
1(d)(iv)	A STATEMENT SHOWING ALL SALES, TRANSFERS, CANCELLATION AND/OR USE OF TREASURY SHARES AS AT THE END OF THE CURRENT
	FINANCIAL PERIOD REPORTED ON
	NA.
1(d)(v)	A STATEMENT SHOWING ALL SALES, TRANSFERS, CANCELLATION AND/OR USE OF SUBSIDIARY HOLDINGS AS AT THE END OF THE CURRENT
	FINANCIAL PERIOD REPORTED ON

NA.

2WHETHER THE FIGURES HAVE BEEN AUDITED OR REVIEWED, AND IN ACCORDANCE WITH WHICH AUDITING STANDARD OR PRACTICE The figures have not been audited or reviewed by the Company's independent auditor, Nexia TS Public Accounting Corporation.

Page 10 of 18

1. WHERE THE FIGURES HAVE BEEN AUDITED OR REVIEWED, THE AUDITORS' REPORT (INCLUDING ANY QUALIFICATIONS OR EMPHASIS OF A
   MATTER)
   NA.
2. WHETHER THE SAME ACCOUNTING POLICIES AND METHODS OF COMPUTATION AS IN THE ISSUER'S MOST RECENTLY AUDITED ANNUAL
   FINANCIAL STATEMENTS HAVE BEEN APPLIED
   Except as disclosed in Note 5 below, the Group has applied the same accounting policies and methods of computation in the financial statements for the current reporting period compared with the audited financial statements for the financial year ended 31 Dec 2019.
3. IF THERE ARE ANY CHANGES IN THE ACCOUNTING POLICIES AND METHODS OF COMPUTATION, INCLUDING ANY REQUIRED BY AN ACCOUNTING STANDARD, WHAT HAS CHANGED, AS WELL AS THE REASONS FOR, AND THE EFFECT OF, THE CHANGE
   On 1 Jan 2020, the Group adopted the new and revised Singapore Financial Reporting Standards (International) ("SFRS(I)") and Interpretations of SFRS(I) ("INT SFRS(I)") that are effective for annual periods beginning on or after 1 Jan 2020. Changes to the Group's accounting policies have been made as required, in accordance with the transitional provisions in the respective SFRS(I), INT SFRS(I) and amendments to SFRS(I).
   The following SFRS(I), amendments to SFRS(I) and INT SFRS(I) that are relevent to the Group are as follows:
4. • Amendments to SFRS(I) 3 Business Combination
   • Amendments to SFRS(I) 16 Covid-19 Related Rent Concessions

The adoption of these new and revised SFRS(I), INT SFRS(I) and amendments to SFRS(I) did not result in substantial changes to the Group's and Company's accounting policies and had no material effect on the amounts reported for the current or prior financial years.

Page 11 of 18

6	EARNINGS PER SHARE
	Group		1H 2020	1H 2019
	Basic losses per ordinary share (US cents)		(0.131)	(0.255)
	Weighted average number of ordinary shares for the purpose of
	computing basic losses per share		599,955,747	585,973,604
	Fully diluted losses per ordinary share (US cents)		(0.131)	(0.255)
	Weighted average number of ordinary shares for the purpose of
	computing fully diluted losses per share		599,955,747	585,973,604

On 10 Jan 2020, an aggregate of 4,630,000 ordinary shares were issued at the exercise price of S$0.060 per share pursuant to 2017 Options granted under the Share Option Plan.

On 9 Jun 2020, an aggregate of 62,500,000 new ordinary shares were issued by a way of a private placement at an issue price of S$0.045 per subscription price with aggregate subscription price of S$2.81 mil (equivalent to US$$2.02 mil).

For the purpose of computing basic and fully diluted losses per share, the relevant periods were from 1 Jan 2020 to 30 Jun 2020 and 1 Jan 2019 to 30 Jun 2019 respectively. The weighted average number of ordinary shares on issue has not been adjusted as the share options were anti-dilutive in 1H 2020 and 1H 2019. The impact on losses per share for 1H 2020 and 1H 2019 were anti-dilutive as it resulted in higher losses per share. Therefore, diluted losses per share was same as basic losses per share.

7 NET ASSET VALUE PER SHARE Group

Net asset value per ordinary share based on total number of issued shares (excluding treasury shares) (US cents)

Group		Company
30 Jun 2020	31 Dec 2019		30 Jun 2020	31 Dec 2019
4.292	4.543	3.102	3.167

Total number of issued shares (excluding treasury shares)

655,498,604

588,368,604

655,498,604

588,368,604

Page 12 of 18

8(i) PERFORMANCE REVIEW

1. SIGNIFICANT FACTORS THAT AFFECT THE TURNOVER, COSTS AND EARNINGS OF THE GROUP Revenue & Production

Revenue decreased by US$2.66 mil to US$5.43 mil in 1H 2020 from US$8.09 mil in 1H 2019. This was largely due to lower weighted average transacted oil prices in 1H 2020 of US$40.83 per barrel (1H 2019: US$64.15 per barrel) despite higher sales of shareable oil by 5% to 168,364 barrels in 1H 2020 (1H 2019: 159,794 barrels) from Myanmar operations.

Cost of Production

The decrease in cost of production to US$4.81 mil in 1H 2020 from US$4.83 mil in 1H 2019 was largely attributable to lower production expenses by US$0.42 mil offset by higher amortisation charges and depreciation charges by US$0.40 mil in 1H 2020 as compared to 1H 2019. Myanmar operations incurred capital expenditure of US$1.20 mil in 1H 2020 which resulted in higher amortisation charges of producing oil and gas properties.

Net Loss

The Group posted a lower loss net loss of US$0.82 mil in 1H 2020 as compared to a net loss of US$1.54 mil in 1H 2019. The lower net loss was mainly due to the following:

1. Lower revenue of US$5.43 mil in 1H 2020 (1H 2019: US$8.09 mil) was due to lower oil prices despite higher sales of shareable oil.
2. Lower cost of production of US$4.81 mil in 1H 2020 (1H 2019: US$4.83 mil) was due to lower production expenses offset by higher amortisation charges of producing oil and gas properties and depreciation charges.
3. Higher other income of US$0.37 mil in 1H 2020 (1H 2019: US$0.28 mil) was mainly due to government grant income received from
   Job Support Scheme and property tax rebate of US$0.05 mil in 1H 2020 (1H 2019: nil) together with higher petroleum services fees
   of US$0.14 mil (1H 2019: US$0.13 mil) and foreign exchange gain of US$0.03 mil in 1H 2020 (1H 2019: foreign exchange loss of US$0.01 mil).
4. Lower administrative expenses of US$1.34 mil in 1H 2020 (1H 2019: US$1.70 mil) was mainly due to lower corporate expenses by US$0.27 mil from cost-cutting measures and lower administrative expenses from Myanmar operations by US$0.08 mil in 1H 2020 as compared to 1H 2019.
5. Other expenses remained constant at US$0.10 mil for both 1H 2020 and 1H 2019 due to depreciation charges of right-of-use assets and property plant and equipment.
6. No impairment and allowances in 1H 2020 as compared to 1H 2019 of US$0.62 mil from loss allowance on loan to an associated company, PT Indelberg Indonesia ("IOI"), of US$0.53 mil and balance due from IOI's subsidiary corporations of US$0.09 mil.
7. No share of losses of associated companies in 1H 2020 (1H 2019: US$2.42 mil).
8. Current income tax expenses of US$0.31 mil in 1H 2020 (1H 2019: US$0.20 mil) were in line with taxable income in 1H 2020. Lower income tax expenses in 1H 2019 was due mainly to overprovision of tax of US$0.23 mil upon the finalisation from tax authority.

Page 13 of 18

8(i) PERFORMANCE REVIEW (CONT'D)

1. MATERIAL FACTORS THAT AFFECT THE CASH FLOW, WORKING CAPITAL, ASSETS OR LIABILITIES OF THE GROUP Statement of Financial Position

Right-of-use assets decreased to US$0.25 mil as at 30 Jun 2020 from US$0.41 mil as at 31 Dec 2019 due to amortisation charges of US$0.16 mil.

Producing oil and gas properties increased by US$0.22 mil to US$10.26 mil as at 30 Jun 2020 from US$10.04 mil as at 31 Dec 2019 due to net capitalisation of drilling expenditure of US$1.20 mil offset by amortisation charges of US$0.98 mil for the financial period.

Exploration and evaluation costs increased to US$13.69 mil as at 30 Jun 20 from US$13.50 mil as at 31 Dec 2019 mainly due to capitalisation of first exploration well costs of US$0.19 mil which completed drilling on 11 Dec 2019. As announced, further analysis of the data is still ongoing and the classification of exploration and evaluation costs remained unchanged until commerical viability is determined.

Intangible assets decreased to US$2.62 mil as at 30 Jun 20 from US$2.79 mil as at 31 Dec 2019 as a result of amortisation charges of US$0.17 mil.

Inventories decreased by US$0.33 mil to US$3.74 mil as at 30 Jun 2020 from US$4.07 mil as at 31 Dec 2019 due to usage of consumable inventories for Myanmar drilling activities.

Trade and other receivables - non-related parties (non-current) increased to US$4.26 mil as at 30 Jun 2020 from US$4.06 mil as at 31 Dec 2019 increased mainly due to increase of loan to non-related parties for the exploration activities in Kuala Pambuang PSC Indonesia. Trade and other receivables - non-related parties (current) decreased to US$1.39 mil as at 30 Jun 2020 from US$2.43 mil as at 31 Dec 2019 were mainly from lower amounts billed of US$4.57 mil as compared to the amounts collected of US$5.62 mil.

Trade and other payables (non-current and current) decreased by US$0.10 mil to US$4.84 mil as at 30 Jun 2020 from US$4.94 mil as at 31 Dec 2019, were mainly from lower trade payables (non-related parties and related parties) by US$0.35 mil offset by higher other payables (non-related parties and related parties) by US$0.15 mil.

Lease liabilities (non-current and current) decreased by US$0.17 mil to US$0.25 mil as at 30 Jun 2020 from US$0.42 mil as at 31 Dec 2019 due to repayment of the principal elements of lease payments of US$0.17 mil during the financial period.

Statement of Cash Flows

Cash and cash equivalents showed a net increase of US$2.30 mil in 1H 2020 due to the following:

1. Net cash provided by operating activities of US$1.66 mil was mainly due to net cash inflows contributed from oil and gas operations in Myanmar operations of US$1.04 mil and offset by the corporate expenses.
2. Net cash used in investing activities of US$1.39 mil was mainly due to addition of exploration and evaluation assets of US$0.19 mil and capital expenditure for Myanmar operations of US$1.20 mil.
3. Net cash provided by financing activities of US$2.03 mil was mainly due to net proceeds for issuance of new ordinary shares pursuant to private placement of US$2.02 mil and share option plan of US$0.21 mil respectively offset the lease payments of US$0.16 mil and interest payments of US$0.03 mil.

Page 14 of 18

8(ii) USE OF PROCEEDS

The placement was completed on 9 Jun 2020 (the "Placement") and the net proceeds (after deducting expenses incurred in connection with the Placement) was S$2,797,500 (approximately US$2,012,885). The utilisation of the proceeds from the placement is in line with the intended uses stated in the announcement of the Placement dated 20 Apr 2020. The remaining balance of the net proceeds amounts to approximately US$1,639,085 as announced on 23 Jul 2020. The breakdown of the use of proceeds was as follows:

Purpose

Net proceeds (after deducting expenses incurred in connection with the Placement)

Payment of work activities relating to the work programme of the Chauk and Yenangyaung fields in Myanmar for the year 2020

To-date US$'000

2,013

(374)

1,639

8(iii) SEGMENTED REVENUE AND RESULTS

Geographical Segment

Indonesia	Myanmar	Consolidated
Oil and Gas	Oil and Gas
1H 2020	1H 2019	1H 2020	1H 2019	1H 2020	1H 2019
US$'000	US$'000	US$'000	US$'000	US$'000	US$'000

Results
EBITDA		(51)	(56)	1,599	3,766	1,548	3,710
EBIT		(51)	(151)	350	2,919	299	2,768
Sales to external customers		-	-	5,427	8,094	5,427	8,094
Segment results		(124)	(277)	350	2,919	226	2,642
Unallocated corporate		-	-	(49)	(55)
net operating results									(739)	(3,981)
Loss before income tax									(513)	(1,339)
Income tax expense		-	-	(283)	(197)	(305)	(200)
Total loss									(818)	(1,539)

Notes

EBIT represents the operating earnings before divestment gain, interest income, exchange difference, finance cost and tax. This is net of joint operation partner's share.

EBITDA represents the operating earnings before divestment gain, interest income, exchange difference, finance cost, tax, depreciation, amortisation, allowance and impairment. This is net of joint operation partner's share.

Page 15 of 18

1. WHERE A FORECAST, OR A PROSPECT STATEMENT, HAS BEEN PREVIOUSLY DISCLOSED TO SHAREHOLDERS, ANY VARIANCE BETWEEN IT AND THE ACTUAL RESULTS
   NA.
2. COMMENTARY
   Myanmar's shareable production increased by 9% to 168,364 barrels in 1H 2020 from 154,673 barrels in 2H 2019. The shareable production increase is largely the result of early drilling successes of three new wells in Myanmar in 1H 2020 together with combined gains from water flood projects and other operations with respect to existing wells. Due to the plunging oil price in early 2020, all new well drilling has been suspended. Monitoring and optimizing in both fields of the nine current water flood projects continue to show positive incremental oil production gains, which offset the loss of contribution from new well drilling.
   For Kuala Pambuang PSC, the exploration well KP-1 was completed on 11 Dec 2019 after reaching a total depth of 3,771 feet. The drilling and testing results were positive, and casing was successfully installed and cemented on 15 Dec 2019. Although production testing was planned to be performed in early 2020, the low oil price and uncertainties in the world economy have forced suspension of work until the situation becomes more certain. Nevertheless, further analysis of all technical data is ongoing and will be incorporated into well completion plans as well as the overall sub-surface interpretation of the Exploration Block. The Company will announce any noteworthy results of data analysis and expected perforation testing. No significant contribution is expected from this field in the near term.
   The Company has suspended all major capital expenditure for the rest of the year as a result of uncertain economic conditions. Further to the completion of the placement and issuance of new ordinary shares on 9 Jun 2020, the Company has strengthened its cash position in the midst of the ongoing crisis. Barring any unforeseen circumstances, the Company has sufficient cash resources to fulfil the current year work program. We will make the necessary and appropriate announcement in the future of any new development.
3. DIVIDEND
4. 1. Any dividend recommended for the current financial period reported on No.
   2. Any dividend declared for the corresponding period of the immediately preceding financial year No.
   3. Whether the dividend is before tax, net of tax or tax exempt NA.
   4. Date payable NA.
   5. Books closure date NA.
5. IF NO DIVIDEND HAS BEEN DECLARED (RECOMMENDED), A STATEMENT TO THAT EFFECT AND THE REASON(S) FOR THE DECISION
   The Company has not declared a dividend for the current financial period reported on. Currently, the Company does not have profits available to declare dividend.
6. INTERESTED PERSON TRANSACTIONS

The Company has not obtained any general mandate from shareholders pursuant to Rule 920(1)(a)(ii) of the Listing Rules.

Page 16 of 18

1. CONFIRMATION BY THE BOARD OF DIRECTORS PURSUANT TO RULE 705(5)
   The Board of Directors of the Company hereby confirms to the best of their knowledge that nothing has come to their attention which may render the interim financial statements for the first half-year ended 30 Jun 2020 to be false or misleading in any material respect.
2. CONFIRMATION PURSUANT TO RULE 720(1)
   The Company confirmed that it has procured undertakings from all its directors and executive officers (in the format set out in Appendix 7.7).
   By Order of the Board of Directors of
   INTERRA RESOURCES LIMITED Marcel Tjia
   Chief Executive Officer 13-Aug-20

Page 17 of 18

16 ABBREVIATIONS
1H 2019	denotes	First half-year ended 30 June 2019
2H 2019	denotes	Second half-year ended 31 December 2019
1H 2020	denotes	First half-year ended 30 June 2020
bopd	denotes	barrels of oil per day
Company	denotes	Interra Resources Limited
SFRS(I)	denotes	Singapore Financial Reporting Standards (International)
Goldpetrol	denotes	Goldpetrol Joint Operating Company Inc.
Goldwater	denotes	Goldwater Company Limited
Group	denotes	Interra Resources Limited and its subsidiary corporations and interests in joint
		operations and associated companies
GKP	denotes	Goldwater KP Pte. Ltd.
IPRC	denotes	Improved Petroleum Recovery Contract
k	denotes	thousand
KP	denotes	Kuala Pambuang block
KSO	denotes	Cooperation Agreement
mil	denotes	million
MITI	denotes	PT Mitra Investindo TBK
MOGE	denotes	Myanma Oil and Gas Enterprise
NA	denotes	Not applicable
NM	denotes	Not meaningful
Pertamina	denotes	Perusahaan Pertambangan Minyak Dan Gas Bumi Negara
PSC	denotes	Production Sharing Contract
TAC	denotes	Technical Assistance Contract

This release may contain forward-looking statements that are not statements of historical facts, and are subject to risk factors associated with the upstream petroleum and mining businesses. Actual future results, performance and outcomes may differ materially from those anticipated, expressed or implied in such forward-looking statements as a result of a number of risks, uncertainties and/or assumptions including but not limited to petroleum price fluctuations, actual petroleum demand, currency fluctuations, drilling and production results, reserve estimates, loss of contracts, industry competition, credit risks, environmental risks, geological risks, political risks, legislative, fiscal and regulatory developments, general industry conditions, economic and financial market conditions in various countries and regions, project delay or advancement, cost estimates, changes in operating expenses, cost of capital and capital availability, interest rate trends and the continued availability of financing in the amounts and the terms necessary to support future business. Undue reliance must not be placed on these forward-looking statements, which are based on current developments, events or circumstances, and may not be updated or revised to reflect new information or events.

Page 18 of 18

Appendix A

13 August 2020

PRODUCTION, DEVELOPMENT & EXPLORATION ACTIVITIES

FOR THE FIRST HALF-YEAR ENDED 30 JUNE 2020 ("1H 2020")

Production Profile

(Barrels)	Myanmar
	Second	First
	Half-Year Ended	Half-Year Ended
	31 December 2019	30 June 2020
	("2H 2019")	("1H 2020")
Shareable production	257,788	280,606
Interra's share of shareable production	154,673	168,364

Interra's Shareable Production

	35,000
	30,000
	25,000
of oil	20,000
15,000
barrels
10,000
	5,000
	0
	Jul-19	Aug-19Sep-19Oct-19Nov-19Dec-19Jan-20Feb-20Mar-20Apr-20May-20Jun-20
		Myanmar

Shareable production is defined as the petroleum produced in the contract area that is over and above the non-shareable production in accordance with the contractual terms. The chart above represents Interra's share of the shareable production in the fields.

Interra Resources Limited 1 Grange Road #05-04 Orchard Building Singapore 239693 Tel [phone] Fax [phone] www.interraresources.com

Production, Development & Exploration Activities

For the First Half-Year Ended 30 June 2020

Page 2 of 3

Development and Production Activities

Myanmar: Chauk and Yenangyaung IPRCs (Interra 60%)

In 1H 2020, the combined shareable production for both fields was 168,364 barrels of oil, an increase of 9% over the 2H 2019 of 154,673 barrels of oil.

Production	and	development
expenditures	for the	1H 2020 were
US$3,586,303	and	US$1,203,106
respectively.

The operator, Goldpetrol Joint Operating Company Inc. ("Goldpetrol") (Interra 60%) drilled and completed as oil producers three new wells in Myanmar in 1H 2020. The increase realized in shareable production is primarily the result of these early drilling successes, as well as combined gains from water flood projects and other operations with respect to existing wells.

Monitoring and optimizing in both fields of the nine current water flood projects and

these continue to show positive incremental oil production gains. Additional projects are being studied for possible implementation going forward.

Reactivations of shut-in wells as well new perforations of prospective reservoirs in existing producing wells continued at an accelerated pace.

Normal field operations are ongoing with respect to surface and borehole improvements combined with scheduled maintenance in existing wells with the objective of minimizing production declines.

Production, Development & Exploration Activities

For the First Half-Year Ended 30 June 2020

Page 3 of 3

Exploration Activities

Indonesia: Kuala Pambuang PSC (Interra 67.5%)

As announced 11 December 2019, exploration well KP-1 completed drilling as per planned and live oil shows were recorded over several reservoirs. Wireline logging confirmed these and subsequent open hole testing collected samples of oil. Cementing of casing in the borehole has been successfully performed, and the well is temporarily shut-in awaiting production testing and possible stimulation.

KP-1 will undergo completion by production testing through casing perforation into the prospective reservoirs and a "completion plan" is currently being formulated based on analysis of drilling and related data. The same will be presented to the relative Government

Regulatory agencies for approvals. Input for the "plan" is advanced from Interra technical team as well as that of several external experts.

As the first post-WWII well drilled in the Kuala Pambuang Block, a forward looking "work plan" is required addressing technical issues relating to advancing the overall exploration project following the completion. Enhancement work continues on the remaining project area using all available pre- and post-drilling data while employing a similar methodology that led to the drilling prospect development.

Potential sourcing for consumables and equipment, as well as operational support necessary to successfully accomplish the completion is underway. The Company will announce any noteworthy results of the proposed production testing or other relevant activities.

Exploration costs for the 1H 2020 were US$189,132.