ELK Petroleum : Securities Issue under Employee Incentive Plan and NEDA Plan

8 October 2018

ASX Limited

Level 6, Exchange Centre 20 Bridge Street

Sydney NSW 2000

ISSUE OF ORDINARY SHARES UNDER THE EMPLOYEE PERFORMANCE INCENTIVE PLAN AND NEDA PLAN ALLOTMENT FOR FY2018

Elk Petroleum Limited (ASX: ELK) ("Company") is pleased to advise that it has issued:

• (a) 4,028,130 ordinary shares under the Employee Performance Incentive (EPI) Plan relating to the year ended 30 June 2018; and

• (b) 1,213,000 Retention Rights and 3,015,000 Performance Rights under the Non-Executive Director and Advisor ("NEDA") Plan.

The EPI Plan was approved by the shareholders of the Company at the Annual General Meeting held on 28 November 2016. The NEDA Plan, and maximum 3 year allocation to the Company's current Non-Executive Directors, was approved by shareholders of the Company at the Annual General Meeting held on 20 November 2017.

The Directors of the Company had previously disclosed the value and basis of the EPI Plan allotments for the year ended 30 June 2018 in the Remuneration Report attached to the FY2018 Annual Report released to the ASX on 28 September 2018. Terms and conditions re vesting of NEDA Plan Rights are as set out in the above referenced Remuneration Report.

As part of the abovementioned allotment:

• (i) Mr. Brad Lingo, Managing Director & CEO, is entitled to 2,071,187 ordinary shares under the EPI Plan allotment for the year ended 30 June 2018, for which a separate Appendix 3Y disclosure has been made; and

• (ii) Dr Neale Taylor has been allotted 573,000 Retention Rights and 955,000 Performance Rights and Mr Hargreaves and Mr Krause have each been allotted 320,000 Retention Rights and 530,000 Performance Rights under the NEDA Plan rules.

For and on behalf of the Board,

Yours faithfully,

David Franks Company Secretary Elk Petroleum Limited

Elk Petroleum Limited ABN 38 112 566 499 Tel [phone]

Suite 4001, Level 40, Australia Square, 264, George Street, Sydney NSW 2000

2.

ABOUT ELK PETROLEUM

Elk Petroleum Limited (ASX: ELK) is an oil and gas company specialising in Enhanced Oil Recovery (EOR), with assets located in one of the richest onshore oil regions of the USA, the Rocky Mountains. Elk's strategy is focused on applying proven EOR technologies to mature oil fields, which significantly de-risks the Company's strategy of finding and exploiting oil field reserves.

Elk Petroleum Limited ABN 38 112 566 499 Tel [phone]

Suite 4001, Level 40, Australia Square, 264, George Street, Sydney NSW 2000