Interra Resources : Unaudited Financial Statement FY 2019

INTERRA RESOURCES LIMITED

Company Registration No. 197300166Z

SGX ANNOUNCEMENT

Counter Name: Interra Res (Code: 5GI)

26 February 2020

Dear Shareholders,

UNAUDITED RESULTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019

Highlights in FY 2019

• Revenue from continuing operations for the financial year was US$15.68 million, 5% higher than the previous financial year. The increase was due mainly to higher sales of shareable oil of 314,467 barrels as compared to the previous financial year of 266,531 barrels although at lower weighted average transacted oil prices of US$63.13 per barrel as compared to the previous financial year of US$67.95 per barrel.
• Total loss after income tax for the financial year was US$0.58 million, as compared to total profit after income tax in previous financial year of US$0.73 million.
• Earnings before divestment gain, interest income, exchange difference, finance cost, tax, depreciation, amortisation, allowance and impairment (EBITDA) from continuing operations for the financial year was US$6.91 million.
• Net cash outflow for the financial year was US$3.86 million, due mainly to net cash provided by operating activities of US$3.11 million offset by net cash used for exploration and evaluation costs of US$2.86 million and capital expenditure of US$3.89 million.
• Cash and cash equivalents were US$2.78 million as at 31 December 2019.

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 FINANCIAL YEAR

ENDED 31 DECEMBER 2019

		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 & Explanatory Notes to Statement of Cash Flows		8 - 10
1(d)(i)		Statements of Changes in Equity		11 - 13
1(d)(ii)		Share Capital		13
1(d)(iii)		Ordinary Shares (Excluding Treasury Shares and Subsidiary Holdings)		13
1(d)(iv)		Treasury Shares		13
1(d)(v)		Subsidiary Holdings		13
2 & 3		Audit or Review		14
4 & 5		Accounting Policies and Methods of Computation		14
6		Earnings Per Share		15
7		Net Asset Value Per Share		15
8(i)		Performance Review		16 - 17
8(ii)		Segmented Revenue and Results		18 - 19
9 & 10		Prospect Statement & Commentary		19
11 & 12		Dividend, Dividend Statement & Reasons		20
13		Interested Party Transactions		20
14		Confirmation Pursuant to Rule 720(1)		20
15		Rule 704(13)		20
16		Abbreviations		21
Appendix A		Production, Development & Exploration Activities Report

Page 1 of 21

1(a)(i)	PROFIT OR LOSS
		Group		Note		Q4 2019		Q4 2018		Change	an	FY 2019		FY 2018		Change
						US$'000		US$'000		%		US$'000		US$'000		%
		Continuing operations
		Revenue		A1		3,948	3,742		↑ 6		15,675	14,885		↑ 5
		Cost of production		A2		(2,867)	(1,976)		↑ 45		(9,967)	(7,988)		↑ 25
		Gross profit				1,081	1,766		↓ 39		5,708	6,897		↓ 17
		Other income, net		A3		268	149		↑ 80		683	713		↓ 4
		Administrative expenses				(502)	(851)		↓ 41		(3,031)	(4,464)		↓ 32
		Finance expenses				(19)	(15)		↑ 27		(89)	(102)		↓ 13
		Other expenses		A4		(50)	(3)		NM		(201)	(17)		NM
		Impairment and allowances		A5		-	(2,138)		NM		(624)	(2,138)		↓ 71
		Share of losses of associated companies				-	(474)		NM		(2,417)	(625)		↑ 287
		Profit/(Loss) before income tax
					778	(1,566)		↑ 150		29	264		↓ 89
		Income tax (expense)/credit		A6		(217)	1,103		↑ 120		(606)	516		↑ 217
		Profit/(Loss) from continuing operations
		for the financial period/year				561	(463)		↑ 221		(577)	780		↓ 174
		Discontinued operations
		Loss from discontinued operations
		for the financial period/year		A7		-	-		NM		-	(54)		NM
		Total profit/(loss)								↑ 221						↓ 179
					561	(463)			(577)	726
		Attributable to:
		Equity holders of the Company				589	(435)				(478)	848
		Non-controlling interests				(28)	(28)				(99)	(122)
						561	(463)				(577)	726
		Profit/(Loss) attributable to equity
		holders of the Company relates to:
		Profit/(Loss) from continuing operations				589	(435)				(478)	874
		Loss from discontinued operations				-	-				-	(26)
						589	(435)				(478)	848
		Earnings/(Losses) per share for continuing and
		discontinued operations attributable to equity
		holders of the Company
		Basic earnings/(losses) per share
		(US cents)
		- From continuing operations				0.101	(0.074)				(0.082)	0.151
		- From discontinued operations				-	-				-	(0.005)
		Diluted earnings/(losses) per share
		(US cents)
		- From continuing operations				0.097	(0.074)				(0.082)	0.145
		- From discontinued operations				-	-				-	(0.005)

Page 2 of 21

1(a)(i)	STATEMENT OF COMPREHENSIVE INCOME
		Group		Note		Q4 2019		Q4 2018		Change	an	FY 2019		FY 2018		Change
						US$'000		US$'000		%		US$'000		US$'000		%
		Total profit/(loss) for the financial period/year				561	(463)		↑ 221		(577)	726		↓ 179
		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
		- Gains/(Losses)				-	363		↓ 100		33	(69)		↑ 148
		- Deconsolidation of subsidiary corporations				-	-		NM		-	80		NM
		Currency translation differences arising
		from consolidation
		- Losses				(33)	(30)		↑ 10		(28)	(98)		↓ 71
		- Deconsolidation of subsidiary corporations				-	-		NM		-	174		NM
		Items that will not reclassified subsequently to
		profit or loss:
		Share of currency translation differences of
		associated companies				-	-		NM		-	(84)		NM
		Currency translation differences arising
		from consolidation - Losses				-	-		NM		-	(173)		NM
		Share of defined benefit obligation re-measurements
		of associated companies				-	29		NM		2	27		↓ 93
		Defined benefit obligation re-measurements				-		-		NM		-		(23)		NM
						(33)	362				7	(166)
		Total comprehensive income/(loss)
		for the financial period/year				528	(101)		↑ 623		(570)	560		↓ 202
		Attributable to:
		Equity holders of the Company				556	(73)				(471)	962
		Non-controlling interests				(28)		(28)				(99)		(402)
						528	(101)				(570)	560

• denotes increase
  ↓ denotes decrease

NM	denotes not meaningful

Page 3 of 21

1(a)(ii)	EXPLANATORY NOTES TO PROFIT OR LOSS
	Group		Q4 2019		Q4 2018		FY 2019		FY 2018
				barrels		barrels		barrels		barrels
	Group's share of shareable oil production		78,393	71,741		314,467	266,419
	Group's sales of shareable oil		78,393	71,741		314,467	266,531
	Group		Q4 2019		Q4 2018		FY 2019		FY 2018
				US$'000		US$'000		US$'000		US$'000
	A1	Revenue
		Sale of oil and petroleum products		3,948	3,742		15,675	14,885
	A2	Cost of production
		Production expenses		2,252	1,673		8,091	7,023
		Amortisation of producing oil and gas properties		393	217		1,397	622
		Amortisation of intangible assets		86	86		343	343
		Depreciation of right-of-use assets		136	-		136	-
				2,867	1,976		9,967	7,988
	A3	Other income, net
		Interest income		70	67		297	354
		Petroleum services fees		45	41		226	210
		Management fees		7	-		15	14
		Currency translation gain/(loss), net		10	26		9	(80)
		Amortised cost adjustment for interest-freenon-current payables		136	-		136	-
		Gain on disposal of granite operations		-	-		-	217
		Loss on disposal of property, plant and equipment		-	-		-	(5)
		Fair value gain on investment properties		-	-		-	43
		Loss on deconsolidation of subsidiary corporations		-	-		-	(48)
		Others		-	15		-	8
				268	149		683	713
	A4	Other expenses
		Depreciation of property, plant and equipment		3	3		11	17
		Depreciation of right-of-use assets		47	-		190	-
				50	3		201	17
	A5	Impairment and allowances
		Loss allowances		-	-		624	-
		Allowance for impairment of investment in associated company		-	2,138		-	2,138
				-	2,138		624	2,138
	A6	Income tax expense/(credit)
		Current income tax expense		217	201		831	788
		Prior year over-provision of current income tax		-	(1,304)		(225)	(1,304)
				217	(1,103)		606	(516)
	A7	Loss from discontinued operations
		Revenue		-	-		-	1,599
		Expenses		-	-		-	(1,653)
		Loss before income tax from discontinued operations		-	-		-	(54)
		Income tax		-	-		-	-
		Total loss from discontinued operations		-	-		-	(54)

Page 4 of 21

1(b)(i)	STATEMENT OF FINANCIAL POSITION
						Group			Company
				Note		31-Dec-19	31-Dec-18		31-Dec-19		31-Dec-18
						US$'000	US$'000		US$'000		US$'000
	Assets
	Non-current assets
	Property, plant and equipment				10			19		10	19
	Right-of-use assets		B1		409			-		204	-
	Producing oil and gas properties		B2		10,041			7,549		-	-
	Exploration and evaluation costs		B3		13,498			10,641		-	-
	Intangible assets		B4		2,791			3,134		-	-
	Investments in subsidiary corporations				-			-		19,062	19,062
	Investments in associated companies		B5		-			2,382		-	2,382
	Other receivables		B6		4,060			2,820		11,215		18,367
						30,809			26,545		30,491	39,830
	Current assets
	Inventories		B7		4,069			3,379		-	-
	Trade and other receivables		B6		2,460			2,784		36	147
	Other current assets				209			414		81	67
	Cash and cash equivalents		B8		2,777			6,638		377	227
						9,515			13,215		494	441
	Total assets				40,324			39,760		30,985	40,271
	Liabilities
	Non-current liabilities
	Other payables		B10		1,295			-		-	-
	Lease liabilities		B9		117			-		77	-
						1,412			-		77	-
	Current liabilities
	Trade and other payables		B10		3,642			5,095		11,136	9,167
	Lease liabilities		B9		306			-		135	-
	Borrowings				1,000			1,000		1,000	1,000
	Current income tax liabilities				4,290			4,508		-	-
						9,238			10,603		12,271	10,167
	Total liabilities				10,650			10,603		12,348	10,167
	Net assets				29,674			29,157		18,637	30,104
	Equity
	Share capital				72,873			72,738		72,873	72,738
	Accumulated losses				(29,979)			(29,503)		(54,507)	(42,935)
	Other reserves				(16,164)			(16,139)		271	301
	Equity attributable to owners of the Company				26,730			27,096		18,637	30,104
	Non-controlling interests				2,944			2,061		-	-
	Total equity				29,674			29,157		18,637	30,104

Page 5 of 21

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

Derecognition of subsidiary corporation with interests in associated companies Fair value of retained interests in subsidiary corporations deconsolidated,

classified as associated companies

Share of losses in associated companies

Share of other comprehensive income in associated companies

Allowance for impairment of investment in associated company

B6 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

B7 Inventories

Consumable inventories

Page 6 of 21

31-Dec-19		31-Dec-18
US$'000		US$'000
267	-
22	-
10	-
110
409		-
809	562
9,232	6,987
10,041	7,549
12,063	9,206
1,435	1,435
13,498		10,641
2,778	3,115
13	19
2,791		3,134
12,191	11,310
-	(3,952)
-	4,833
12,191	12,191
(10,149)	(7,732)
96	61
(2,138)	(2,138)
-		2,382
4,060	2,820
2,286	2,022
143	204
655	558
3,084	2,784
(624)	-
2,460	2,784
6,520		5,604
4,069	3,379

1(b)(i)	EXPLANATORY NOTES TO STATEMENT OF FINANCIAL POSITION (CONT'D)
	Group						31-Dec-19		31-Dec-18
							US$'000		US$'000
	B8	Cash and cash equivalents
		Cash at bank and on hand					1,777	2,613
		Short-term fixed deposits					1,000	4,025
							2,777		6,638
	B9	Lease liabilities
		Current					306	-
		Non-current					117	-
							423	-
	B10	Trade and other payables
		Non-current
		Other payables - non-related party					905	-
		Other payables - related party					390	-
							1,295	-
		Current
		Trade payables - non-related parties					1,271	1,737
		Trade payables - related parties					333	402
		Other payables - non-related parties					1,664	2,104
		Other payables - related parties					-	238
		Accruals					374	614
							3,642	5,095
							4,937	5,095
1(b)(ii)	BORROWINGS AND DEBT SECURITIES
	Group			31-Dec-19		31-Dec-18
				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 rate is charged at 4.74% per annum for a tenor period of 1 month.

Page 7 of 21

1(c)	STATEMENT OF CASH FLOWS
		Group		Note		Q4 2019		Q4 2018		FY 2019		FY 2018
						US$'000		US$'000		US$'000		US$'000
		Cash Flows from Operating Activities
		Total profit/(loss)				561	(463)		(577)	726
		Adjustments for non-cash items:
		Income tax expense/(credit)				217	(1,103)		606	(516)
		Share of losses of associated companies				-	474		2,417	625
		Share option expense				-	60		-	278
		Depreciation of property, plant and equipment				3	3		11	17
		Depreciation of right-of-use assets				183	-		326	-
		Amortisation of producing oil and gas properties				393	217		1,397	622
		Amortisation of intangible assets				86	86		343	343
		Interest income				(70)	(67)		(297)	(354)
		Allowance for impairment of investment in associated company				-	2,138		-	2,138
		Loss allowances				-	-		624	-
		Gain on disposal of granite operations				-	-		-	(217)
		Gain on curtailment				-	-		-	(45)
		Fair value gain on investment properties				-	-		-	(43)
		Interest on borrowings				-	15		52	102
		Interest on lease liabilities				19	-		37	-
		Loss on disposal of property, plant and equipment				-	-		-	5
		Loss on deconsolidation of subsidiary corporations				-	-		-	48
		Amortised cost adjustment for interest-freenon-current payables				(136)	-		(136)	-
		Unrealised currency translation gains				(37)	(40)		(44)	(51)
		Operating profit before working capital changes				1,219	1,320		4,759	3,678
		Changes in working capital
		Inventories				128	(200)		(690)	114
		Trade and other receivables and other current assets				(252)	348		(97)	595
		Trade and other payables				(2,363)	536		(37)	453
		Cash (used in)/generated from operations				(1,268)	2,004		3,935	4,840
		Income tax paid				(178)	(212)		(824)	(572)
		Net cash (used in)/provided by operating activities				(1,446)	1,792		3,111	4,268
		Cash Flows from Investing Activities
		Interest received				14	15		78	99
		Net proceeds from disposal of granite operations		C1		-	-		-	185
		Net proceeds from disposal of property, plant and equipment				-	-		-	4
		Loans to an associated company				-	-		-	(378)
		Cash and bank balances of subsidiary corporations
		deconsolidated		C2		-	-		-	(1,520)
		Additions to property, plant and equipment				(2)	-		(2)	(1)
		Additions to producing oil and gas properties				(993)	(1,380)		(3,889)	(5,038)
		Additions to exploration and evaluation assets				(1,217)	(5)		(2,857)	(24)
		Additions to intangible assets				-	-		-	(3,420)
		Net cash used in investing activities				(2,198)	(1,370)		(6,670)	(10,093)

Page 8 of 21

1(c)	STATEMENT OF CASH FLOWS (CONT'D)
		Group			Note		Q4 2019		Q4 2018		FY 2019		FY 2018
							US$'000		US$'000		US$'000		US$'000
		Cash Flows from Financing Activities
		Interest paid					(27)	(21)		(93)	(109)
		Proceeds from issuance of new ordinary shares pursuant to
		share option plan, net of issuance costs					105	-		105	-
		Proceeds from issuance of new ordinary shares pursuant to
		private placement of shares, net of issuance costs					-	-		-	3,380
		Repayment of bank loans					-	-		-	(2,000)
		Principal elements of lease payments					(178)	-		(314)	-
		Deposits discharged					-	-		-	2,000
		Net cash (used in)/provided by financing activities					(100)	(21)		(302)	3,271
		Net (decrease)/increase in cash and cash equivalents					(3,744)	401		(3,861)	(2,554)
		Cash and cash equivalents at beginning of financial period/year					6,521	6,237		6,638	9,192
		Cash and cash equivalents at end of financial period/year					2,777	6,638		2,777	6,638
1(c)	EXPLANATORY NOTES TO STATEMENT OF CASH FLOWS

Group

C1 Net proceeds from disposal of granite operations

Property, plant and equipment

Mining properties (tangible assets)

Mining properties (intangible assets)

Intangible assets

Restricted cash

Inventories

Retirement benefit obligations

Provision for environmental and restoration costs

Deferred income tax liabilities

Total net identifiable assets disposed

Total purchase consideration

Gain on disposal of granite operations

Effects on cash flows of the Group

Total purchase consideration

Less: Deposit received for proposed disposal of granite operations in FY 2015 and FY 2017

Less: Cash inflow from disposal of granite operations

Less: Foreign exchange loss

Balance of purchase consideration was settled in FY 2018

FY 2018

US$'000

40

2,362

338

413

959

963

5,075

(187)

(959)

(393)

(1,539)

3,536

3,753

(217)

3,753

(3,130)

(185)

438

(224)

214

Page 9 of 21

1(c)	EXPLANATORY NOTES TO STATEMENT OF CASH FLOWS (CONT'D)
		Group		FY 2018	FY 2018	FY 2018
				MITI	GLS	Total
				US$'000	US$'000	US$'000
		C2 Deconsolidation of subsidiary corporations
		Property, plant and equipment		39	-	39
		Producing oil and gas properties		-	19	19
		Investment properties		266	-	266
		Investments in associated companies		6,780	-	6,780
		Inventories		-	1,126	1,126
		Trade and other receivables		1,964	858	2,822
		Cash and bank balances		393	1,127	1,520
		Restricted cash		133	98	231
		Current income tax assets		-*	-	-*
				9,575	3,228	12,803
		Trade and other payables		(1,002)	(463)	(1,465)
		Retirement benefit obligations		(91)	61	(30)
		Provision for environmental and restoration costs		(133)	(1,580)	(1,713)
		Borrowings		(701)	-	(701)
		Current income tax liabilities		-	(2,011)	(2,011)
		Deferred income tax liabilities		(4)	-	(4)
				(1,931)	(3,993)	(5,924)
		Total net identifiable assets/(liabilities) derecognised		7,644	(765)	6,879
		Net (assets)/liabilities derecognised		(7,644)	765	(6,879)
		Non-controlling interests derecognised		5,460	(3,178)	2,282
		Fair value of retained interests classified as associated companies,
		represents fair value of deemed consideration		4,833	-*	4,833
		Cumulative exchange differences in respect of the net assets of the subsidiary corporations
		reclassified due to loss of control of subsidiary corporations		(254)	-	(254)
		Defined benefits obligation re-measuresments
		- reclassification to profit or loss due to loss of control of subsidiary corporations		(30)	-	(30)
		Gain/(Loss) on deconsolidation of subsidiary corporations		2,365	(2,413)	(48)
		Effects on cash flows of the Group
		Cash and bank balances of subsidiary corporations deconsolidated		393	1,127	1,520

* Amount was less than US$1,000.

Page 10 of 21

1(d)(i)	STATEMENTS 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 2019		72,738	105	(16,545)	301	(29,503)		27,096		2,061		29,157
	Loss for FY 2019		-	-	-	-	(478)		(478)		(99)		(577)
	Other comprehensive income/(loss)
	Currency translation differences		-	(28)	-	-	-		(28)		-		(28)
	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 FY 2019		-	5	-	-	(476)		(471)		(99)		(570)
	Additional increase of non-controlling
		interests in subsidiary corporation		-	-	-	-	-		-		982		982
	Issuance of new ordinary shares pursuant
		to share option plan		135	-	-	(30)	-		105		-		105
	Share issue expenses		-*	-	-	-	-		-*		-		-*
	Total transactions with owners,
		recognised directly in equity		135		-		-		(30)		-		105		982		1,087
	Balance as at 31 Dec 2019		72,873	110	(16,545)	271	(29,979)		26,730		2,944		29,674

Page 11 of 21

1(d)(i)	STATEMENTS OF CHANGES IN EQUITY (CONT'D)
						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 2018		69,258	18	(16,545)	23	(30,378)		22,376		4,746		27,122
	Profit/(Loss) for FY 2018		-	-	-	-	848		848		(122)		726
	Other comprehensive income/(loss)
	Currency translation differences
		- foreign subsidiary corporations		-	(98)	-	-	-		(98)		(173)		(271)
		- Deconsolidation of subsidiary
		corporations		-	174	-	-	-		174		-		174
	Share of currency translation differences
		of associated companies		-	(69)	-	-	-		(69)		(84)		(153)
	Deconsolidation of subsidiary corporations
		with share of currency translation
		differences of associated companies		-	80	-	-	-		80		-		80
	Defined benefit obligation
		re-measurements		-	-	-	-	-		-		(23)		(23)
	Share of defined benefit
		obligation re-measurements
		of associated companies		-	-	-	-	27		27		-		27
	Total comprehensive income/(loss)
		for FY 2018		-	87	-	-	875		962		(402)		560
	Additional increase of non-controlling
		interests in subsidiary corporation		-	-	-	-	-		-		35		35
	Disposal of a subsidiary corporation with
		non-controlling interests		-	-	-	-	-		-		(36)		(36)
	Deconsolidation of subsidiary corporations
		with non-controlling interests due to
		loss of control		-	-	-	-	-		-		(2,282)		(2,282)
	Issuance of new ordinary shares pursuant
		to private placement		3,480	-	-	-	-		3,480		-		3,480
	Share issue expenses		-*	-	-	-	-		-*		-		-*
	Employee share option plan
		- value of employee services		-	-	-	278	-		278		-		278
	Total transactions with owners,
		recognised directly in equity		3,480		-		-		278		-		3,758		(2,283)		1,475
	Balance as at 31 Dec 2018		72,738	105	(16,545)	301	(29,503)		27,096		2,061		29,157

Page 12 of 21

1(d)(i)	STATEMENTS 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 2019		72,738	301	(42,935)		30,104
	Total comprehensive loss for FY 2019		-	-	(11,572)		(11,572)
	Issuance of new ordinary shares pursuant to share option plan		135	(30)	-		105
	Share issue expenses		-*		-		-		-*
	Balance as at 31 Dec 2019		72,873	271	(54,507)		18,637
	Balance as at 1 Jan 2018		69,258	23	(40,897)		28,384
	Total comprehensive loss for FY 2018		-	-	(2,038)		(2,038)
	Issuance of new ordinary shares pursuant to share option plan		3,480	-	-		3,480
	Share issue expenses		-*	-	-		-*
	Employee share option plan - value of employee services		-	278	-		278
	Balance as at 31 Dec 2018		72,738	301	(42,935)		30,104

* Amount was less than US$1,000.

1(d)(ii)	SHARE CAPITAL
	On 31 Dec 2019, an aggregate of 2,395,000 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 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.
	The number of ordinary shares comprised in the options granted and outstanding under the Interra Share Option Plan as at 31 Dec 2019 was 21,605,000 (31 Dec
	2018: 24,000,000).
	The Company does not have any treasury shares or subsidiary holdings as at 31 Dec 2019 and 31 Dec 2018.
1(d)(iii)	ORDINARY SHARES (EXCLUDING TREASURY SHARES AND SUBSIDIARY HOLDINGS)
	Group and Company		31 Dec 2019		31 Dec 2018
	Issued and fully paid
	Opening balance		585,973,604	585,973,604
	Issuance of new ordinary shares pursuant to share option plan		2,395,000	-
	Closing balance		588,368,604	585,973,604
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.

Page 13 of 21

1. WHETHER 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.
2. WHERE THE FIGURES HAVE BEEN AUDITED OR REVIEWED, THE AUDITORS' REPORT (INCLUDING ANY QUALIFICATIONS OR EMPHASIS OF A
   MATTER)
   NA.
3. 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 2018.
4. 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 2019, 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 2019. 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:
5. • SFRS(I) 16 - Leases
   • SFRS(I) INT 23 - Uncertainty Over Income Tax Treatments
   • Amendments to SFRS(I) 1 - 28 - Long-term Interests in Associates and Joint Ventures
   • Annual Improvements to SFRS(I) 2015 - 2017 Cycle

Other than the adoption of SFRS(I) 16 - Leases, as disclosed below. 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.

The Group has adopted the SFRS(I) 16 - Leases, which took effect 1 Jan 2019, using the modified retrospective approach, where the comparative figures of the financial year prior to the first adoption will not be restated. SFRS(I) 16 - Leases introduces a single, on-balance sheet lease accounting model. It requires a lesee to recognise a right-of-use ("ROU") asset representing its use the underlying asset and a lease liability representing its obligation to make lease payments.

In compliance with SFRS(I) 16 - Leases, the Group and the Company has applied the practical expedient to recognise the amount of ROU assets equal to the lease liabilities as at 1 Jan 2019 adjusted by the amounts of any prepaid or accrued lease payments relating to those leases recognised in the statement of financial position before 1 Jan 2019, accordingly no adjustment was made to the opening accumulated losses of the Group. Subsequent to initial recognition, the Group and the Company depreciate the ROU assets over the lease term, and recognise interest expenses on the lease liabilities.

The ROU assets as at 1 Jan 2019 were mainly related to leases of the property, motor vehicle, office equipment, heavy equipment and machinery occupied by the Group in various countries. Accordingly, there was a corresponding increase in lease liabilities of approximately US$0.73 mil as at 1 Jan 2019.

Page 14 of 21

6	EARNINGS PER SHARE
	Group		Q4 2019	Q4 2018		FY 2019	FY 2018
	Basic earnings/(losses) per ordinary share (US cents)
	- From continuing operations		0.101	(0.074)		(0.082)	0.151
	- From discontinued operations		-	-		-	(0.005)
	Weighted average number of ordinary shares for the purpose of
	computing basic earnings/(losses) per share		585,999,637	585,973,604		585,980,166	579,437,151
	Fully diluted earnings/(losses) per ordinary share
	(US cents)
	- From continuing operations		0.097	(0.074)		(0.082)	0.145
	- From discontinued operations		-	-		-	(0.005)
	Weighted average number of ordinary shares for the purpose of
	computing fully diluted earnings/(losses) per share		607,649,637	609,973,604		607,630,166	603,437,151

On 31 Dec 2019, an aggregate of 2,395,000 ordinary shares were issued at the exercise price of S$0.060 per share pursuant to 2017 Options granted under the Share Option Plan.

For the purpose of computing basic and fully diluted earnings/(losses) per share, the relevant periods were from 1 Oct 2019 to 31 Dec 2019 and 1 Jan 2019 to 31 Dec 2019 respectively. The weighted average number of ordinary shares on issue has not been adjusted as the share options were anti-dilutive in Q4 2019 and FY 2019. The impact on losses per share from continuing operations for FY 2019 and losses per share from discontinued operations for FY 2018 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
31 Dec 2019	31 Dec 2018		31 Dec 2019	31 Dec 2018
4.543	4.624	3.167	5.137

Total number of issued shares (excluding treasury shares)

588,368,604

585,973,604

588,368,604

585,973,604

Page 15 of 21

8(i) PERFORMANCE REVIEW

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

Revenue increased by US$0.79 mil to US$15.68 mil in FY 2019 from US$14.89 mil in FY 2018. This was largely due to increased sales of shareable oil by 18% to 314,467 barrels in FY 2019 (FY 2018: 266,531 barrels) although at lower weighted average transacted oil prices in FY 2019 of US$63.13 per barrel (FY 2018: US$67.95 per barrel).

The Group's shareable oil production increased by 18% to 314,467 barrels in FY 2019 from 266,419 barrels in FY 2018. The increase was due to higher shareable production from Myanmar of 314,467 barrels in FY 2019 (FY 2018: 253,666 barrels). No contribution from Indonesia operation in FY 2019 after deconsolidation of GLS in Jun 2018 (FY 2018: 12,753 barrels).

Cost of Production

The increase in cost of production to US$9.97 mil in FY 2019 from US$7.99 mil in FY 2018 was largely attributable to higher production expenses by US$1.07 mil and higher amortisation charges and depreciation charges by US$0.91 mil in FY 2019 as compared to FY 2018. Myanmar operations incurred capital expenditure of US$3.89 mil in FY 2019 which resulted in higher amortisation charges of producing oil and gas properties.

Net Loss After Tax

The Group posted a total loss after tax of US$0.58 mil in FY 2019 as compared to a total profit after tax of US$0.73 mil in FY 2018. The loss was mainly due to the following:

1. Higher revenue of US$15.68 mil in FY 2019 (FY 2018: US$14.89 mil) was due to higher sales of shareable oil although at lower oil prices.
2. Higher cost of production of US$9.97 mil in FY 2019 (FY 2018: US$7.99 mil), was due to higher production expenses and higher amortisation charges of producing oil and gas properties. The higher depreciation charges of right-of-use assets of US$ 0.14 mil was included in the cost of production as a result of the adoption of SFRS(I) 16 - Leases from 1 Jan 2019.
3. Lower other income of US$0.68 mil in FY 2019 (FY 2018: US$0.71 mil), was mainly due to lower interest income of US$0.30 mil in
   FY 2019 (FY 2018: US$0.35 mil) although there was amortised cost adjustment for interest-freenon-current payables of US$0.14
   mil (FY 2018: nil) and foreign exchange gain of US$0.01 mil in FY 2019 (FY 2018: foreign exchange loss of US$0.08 mil).
4. Lower administrative expenses of US$3.03 mil in FY 2019 (FY 2018: US$4.46 mil), were mainly due to lower corporate expenses by
   US$0.78 mil from cost-cutting measures and no share option expenses in FY 2019 (FY 2018: US$0.28 mil). Lower administrative expenses from Myanmar operations by US$0.12 mil in FY2019 as compared to FY2018. Further to above, MITI and GLS administrative expenses of US$0.50 mil were included in FY 2018 before it deconsolidation.
5. Higher other expenses of US$0.20 mil in FY 2019 (FY 2018: US$0.02 mil), were mainly due to depreciation charges of right-of-use assets of US$0.19 mil as a result of the adoption of SFRS(I) 16 - Leases from 1 Jan 2019.
6. Lower impairment and allowances of US$0.62 mil in FY 2019 (FY 2018: US$2.14 mil) was 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. Higher share of losses of associated companies of US$2.42 mil in FY 2019 (FY 2018: US$0.63 mil) as the Group recognised more share of losses of associated companies up to its cost of investments.
8. Current income tax expenses of US$0.61 mil in FY 2019 (FY 2018: income tax credit of US$0.52 mil), were due to reversal of prior year over-provision of income tax of US$0.22 mil upon finalisation of tax assessment and current income tax expenses of US$0.83 mil was in line with higher taxable income in FY 2019.

Page 16 of 21

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 increased to US$0.41 mil as at 31 Dec 2019, as a result of adoption of SFRS(I) 16 - Leases effective from 1 Jan 2019, which required the recognition of the right-of-use assets for leases of property, motor vehicle, office equipment and heavy equipment and machinery of US$0.73 mil and amortised over the leased period, offset by amortisation charges of US$0.32 mil.

Producing oil and gas properties increased by US$2.49 mil to US$10.04 mil as at 31 Dec 2019 from US$7.55 mil as at 31 Dec 2018, were due to net capitalisation of drilling expenditure of US$3.89 mil offset by amortisation charges of US$1.40 mil for the financial year.

Exploration and evaluation costs increased to US$13.50 mil as at 31 Dec 2019 from US$10.64 mil as at 31 Dec 2018 were mainly due to capitalisation of first exploration well costs of US$2.86 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$2.79 mil as at 31 Dec 2019 from US$3.13 mil as at 31 Dec 2018, as a result of amortisation charges of US$0.34 mil.

Investments in associated companies decreased to nil as at 31 Dec 2019 from US$2.38 mil as at 31 Dec 2018. This was mainly due to share of losses of US$2.42 mil offset by share of other comprehensive income of US$0.04 mil.

Inventories increased by US$0.69 mil to US$4.07 mil as at 31 Dec 2019 from US$3.38 mil as at 31 Dec 2018, were due to higher consumable inventories maintained for Myanmar drilling activities.

Trade and other receivables - non-related parties (non-current) increased to US$4.06 mil as at 31 Dec 2019 from US$2.82 mil as at 31 Dec 2018, 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) increased to US$2.43 mil as at 31 Dec 2019 from US$2.23 mil as at 31 Dec 2018, were mainly from higher amounts billed by US$0.42 mil as compared to the amounts collected of US$0.16 mil and value-added tax reimbursement of US$0.08 mil from Indonesia operation.

Loan to associated companies decreased to nil as at 31 Dec 2019 from US$0.56 mil as at 31 Dec 2018, were due to loss allowance provided following the termination of the Benakat Barat KSO by Pertamina as per announcement on 16 May 2019.

Trade and other payables (non-current and current) decreased by US$0.16 mil to US$4.94 mil as at 31 Dec 2019 from US$5.10 mil as at 31 Dec 2018, were mainly from lower trade payables (non-related parties and related parties) by US$0.54 mil and lower accruals by US$0.24 mil offset by higher other payables (non-related parties and related parties) by US$0.62 mil.

Lease liabilities (non-current and current) increased to US$0.42 mil as at 31 Dec 2019 due to the adoption of SFRS(I) 16 - Leases. The right-of-use assets are measured at the amount of lease labilities of US$0.73 mil effective from 1 Jan 2019 which have reduced by repayment of the principal elements of lease payments of US$0.31 mil during the financial year.

Statement of Cash Flows

Cash and cash equivalents showed a net decrease of US$3.86 mil in FY 2019 due to the following:

1. Net cash provided by operating activities of US$3.11 mil was mainly due to net cash inflows contributed from oil and gas operations in Myanmar operations of US$3.83 mil and net inflows from Indonesia operation of US$0.19 mil from the settlement of trade receivables and value-added tax reimbursement offset by the corporate expenses of US$1.86 mil.
2. Net cash used in investing activities of US$6.67 mil was mainly due to addition of exploration and evaluation assets of US$2.86 mil and capital expenditure for Myanmar operations of US$3.89 mil offset by the interest received of US$0.08 mil.
3. Net cash used in financing activities of US$0.30 mil was mainly due to lease payments of US$0.31 mil and interest payments of US$0.09 mil offset the net proceeds received for issuance of new shares pursuant to share option plan of US$0.10 mil.

Page 17 of 21

8(ii) SEGMENTED REVENUE AND RESULTS

Geographical Segment

Indonesia	Myanmar	Consolidated
Oil and Gas	Oil and Gas
Q4 2019	Q4 2018	Q4 2019	Q4 2018	Q4 2019	Q4 2018
US$'000	US$'000	US$'000	US$'000	US$'000	US$'000

Results
EBITDA		(3)	(61)	1,552	1,926	1,549	1,865
EBIT		(3)	(61)	922	1,624	919	1,563
Sales to external customers		-	-	3,948	3,742	3,948	3,742
Segment results		85	(74)	922	1,624	1,007	1,550
Unallocated corporate		-	-	17	(63)
net operating results									(229)	(3,116)
Profit/(Loss) before income tax									778	(1,566)
Income tax (expense)/credit		-	-	(206)	(196)	(217)	1,103
Total profit/(loss)									561	(463)

Geographical Segment

Indonesia	Myanmar	Consolidated
Oil and Gas	Oil and Gas
FY 2019	FY 2018	FY 2019	FY 2018	FY 2019	FY 2018
US$'000	US$'000	US$'000	US$'000	US$'000	US$'000

Results
EBITDA		(97)	215	7,004	6,640	6,907	6,855
EBIT		(193)	192	5,070	5,698	4,877	5,890
Sales to external customers		-	1,162	15,675	13,723	15,675	14,885
Segment results		(292)	(33)	5,070	5,698	4,778	5,665
Unallocated corporate		-	-	(83)	(217)
net operating results									(4,749)	(5,401)
Profit before income tax									29	264
Income tax (expense)/credit		-	-	(592)	(715)	(606)	516
Net (loss)/profit from
continuing operations									(577)	780
Loss from discontinued
operations for the
financial year									-	(54)
Total (loss)/profit									(577)	726

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 18 of 21

8(iii) REVENUE BREAKDOWN
	Group		FY 2019	FY 2018		Increase /
			US$'000	US$'000		(Decrease)
						%
	Revenue
	- First half		8,094	6,848		18
	- Second half		7,581	8,037		(6)
			15,675	14,885		5
	Operating (loss)/profit after tax before deducting non-controlling
	interests
	- First half		(1,539)	(102)		1,409
	- Second half		962	828		16
			(577)	726		(179)

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 3% to 78,393 barrels in Q4 2019 from 76,280 barrels in Q3 2019. For the whole year, the shareable production increased from 266,419 barrels for FY 2018, to 314,467 barrels in FY 2019, an increase of 18% over the previous financial year. The shareable production increase was largely the result of drilling successes earlier in the year combined with gains seen from the reactivations of shut-in wells and new perforations of prospective reservoirs. In addition, waterflooding was also yielding positive results in terms of higher production and reducing the decline rate for old wells.
   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. Production testing is planned for mid-year 2020. 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.
   Despite the good operational performance from the Myanmar operations for the quarter, the overall year to-date result was affected by the impairment charges made in Q2 2019 against the investments in an associated company. Moving forward, depending on the result of the exploration well drilled in Kuala Pambuang PSC, the Group will assess and evaluate the appropriate fund raising options. Nevertheless, and 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.

Page 19 of 21

1. DIVIDEND
2. 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.
3. (A) 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.
   (B) A BREAKDOWN OF THE TOTAL ANNUAL DIVIDEND (IN DOLLAR VALUE) FOR THE ISSUER'S LATEST FULL YEAR AND ITS PREVIOUS FULL YEAR
   NA.
4. INTERESTED PERSON TRANSACTIONS
   The Company has not obtained any general mandate from shareholders pursuant to Rule 920(1)(a)(ii) of the Listing Rules.
5. 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).
6. RULE 704(13)
   Person occupying a managerial position in the Company and/or its principal subsidiaries who is a relative of a director or chief executive officer or substantial shareholder of the Company during FY 2019 is as follows:-

Name		Marissa Soeryadjaya
Age		32
Family relationship with any Director and/or		Daughter of Edwin Soeryadjaya, Non-Executive Chairman and
Substantial Shareholder		substantial shareholder of the Company
Current position and duties, and the year the		Business Development Manager (Indonesia) responsible for
position was held		developing the Group's business in Indonesia since 13 Nov 2017
Details of changes in duties and position held, if		No change
any, during the year
By Order of the Board of Directors of
INTERRA RESOURCES LIMITED
Marcel Tjia
Chief Executive Officer
26-Feb-20

Page 20 of 21

16 ABBREVIATIONS
Q4 2018	denotes	Fourth calendar quarter of the year 2018
Q2 2019	denotes	Second calendar quarter of the year 2019
Q3 2019	denotes	Third calendar quarter of the year 2019
Q4 2019	denotes	Fourth calendar quarter of the year 2019
FY 2015	denotes	Full year ended 31 December 2015
FY 2017	denotes	Full year ended 31 December 2017
FY 2018	denotes	Full year ended 31 December 2018
FY 2019	denotes	Full year ended 31 December 2019
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.
GLS	denotes	Goldwater LS Pte. Ltd.
IOI	denotes	PT Indelberg Oil Indonesia
IPRC	denotes	Improved Petroleum Recovery Contract
k	denotes	thousand
KP	denotes	Kuala Pambuang block
KSO	denotes	Cooperation Agreement
LS	denotes	Linda Sele fields
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 21 of 21

Appendix A

26 February 2020

PRODUCTION, DEVELOPMENT & EXPLORATION ACTIVITIES

FOR THE FOURTH QUARTER ENDED 31 DECEMBER 2019 ("Q4 2019")

Production Profile

(Barrels)	Myanmar
	Q3 2019	Q4 2019
Shareable production	127,134	130,655
Interra's share of shareable production	76,280	78,393

Interra's Shareable Production

35,000
30,000
25,000
20,000
ofoil
15,000
barrels
10,000
5,000
0
Jan-19	Feb-19	Mar-19	Apr-19	May-19	Jun-19Jul-19	Aug-19Sep-19	Oct-19	Nov-19Dec-19
					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 Fourth Quarter Ended 31 December 2019

Page 2 of 3

Development and Production Activities

Myanmar: Chauk and Yenangyaung IPRCs (Interra 60%)

In Q4 2019, the combined shareable production for both fields was 78,393 barrels of oil, an increase of 3% over the preceding quarter of 76,280 barrels of oil.

Production	and	development
expenditures	for the	period were
US$2,251,864	and	US$993,488
respectively.

The operator, Goldpetrol Joint Operating Company Inc. ("Goldpetrol") (Interra 60%) commenced drilling three new wells in Myanmar in Q4 2019, one of which was under the 2020 approved budget. The shareable production increase is largely the results of drilling successes earlier in the year combined with gains seen from the reactivations of shut-in wells and new perforations of prospective reservoirs. Under the 2019 budget ten new wells were drilled of which eight were completed as oil producers and two Q4

2019 wells were under testing and evaluation at year-end.

Monitoring of existing waterflood projects continues with a focus on optimizing current water injection strategies for each project to maximize oil production. Five new projects were implemented in 2019, giving a total at year end 2019 of ten active of various sizes and "sweep" objectives. Several additional are planned for implementation in 2020.

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 Fourth Quarter Ended 31 December 2019

Page 3 of 3

Exploration Activities

Indonesia: Kuala Pambuang PSC (Interra 67.5%)

The drilling and testing of exploration well KP-1 was completed on 11 December 2019 after reaching a total depth of 3,771 feet. Live oil shows over several zones were recorded while drilling in the primary reservoir targets by borehole cuttings analysis. Electric Wireline Line data has confirmed and is consistent with the drilling shows. Subsequently, testing was completed in the open hole and samples of oil have been collected.

The Company has determined that the drilling and testing results were positive, and casing was successfully installed and cemented on 15 December 2019. Production testing by casing perforation and possibly reservoir stimulation are

planned to be performed in 2020. 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.

This is the first well drilled in the Kuala Pambuang Block and the Company will announce any noteworthy results of data analysis and expected perforation testing.

Exploration costs for the period were US$1,218,240.