Invictus Energy : Receives Non-Binding Farm-In Offer

Invictus Energy Ltd

ASX: IVZ

Invictus Receives Non-BindingFarm-In Offer

DATE: 22 DECEMBER 2020

HIGHLIGHTS

• Non-bindingoffer for farm-in to Cabora Bassa Project received
• Transaction subject to further due diligence, government approvals and completion of binding Farm Out Agreement(s)
• Petroleum Exploration Development and Production Agreement review completed
• Preferred contractor selected for seismic acquisition program in 2021
• Investor Briefing Details

Invictus Energy Limited ("Invictus" or "the Company"), is pleased to provide an update on the activities of its 80% owned and operated Cabora Bassa Project in Zimbabwe.

Non-binding offer for farm-in to the Cabora Bassa Project

The Company has received a non-binding offer for farm-in to the Cabora Bassa Project. The proposed transaction is subject to completion of further technical, legal and commercial due diligence by both parties, approvals and agreements by requisite government authorities and execution of binding Farm Out Agreement(s). Further details of the proposed transaction will be made public upon completion of a binding FOA(s) and satisfaction (or waiver) of conditions.

Petroleum Exploration Development and Production Agreement (PEDPA) review completed

The Petroleum Exploration Development and Production Agreement (PEDPA) between Geo Associates and the Republic of Zimbabwe was reviewed by the Inter-Ministerial Committee established to review the agreement and has been recommended for approval. The PEDPA provides the framework for progression of the Cabora Bassa Project through the exploration, appraisal, development and production phases and the obligations and rights of each party over the project lifecycle. The Company is awaiting final approval of the agreement prior to execution.

Invictus Energy Limited	24 Outram Street, West Perth, WA 6005 Australia
ABN 21 150 956 773	T: [phone] E: [e-mail]

About Invictus Energy

Invictus Energy Ltd is an independent oil and gas exploration company focused on high impact energy resources in sub-Saharan Africa. Our asset portfolio consists of a highly prospective 250,000 acres within the Cabora Bassa Basin in Zimbabwe. Special Grant 4571 contains the world class multi- TCF Mzarabani and Msasa conventional gas-condensate prospects.

Board & Management

Dr Stuart Lake

NON-EXECUTIVE CHAIRMAN

Scott Macmillan

MANAGING DIRECTOR

Brent Barber

COUNTRY MANAGER

Barnaby Egerton-Warburton

NON-EXECUTIVE DIRECTOR

Gabriel Chiappini

NON-EXECUTIVE DIRECTOR &

COMPANY SECRETARY

www.invictusenergy.com

The Petroleum Product Sharing Agreement (PPSA) contains the fiscal provisions of the project, including the Republic of Zimbabwe's profit/product share, and takes effect following the commencement of the production phase of the project. The PPSA is undergoing independent review which is expected to be completed early in the new year, following which the PPSA is expected to be finalised and executed.

Together, the PEDPA and PPSA form the Production Sharing Agreements (PSA) between the Republic of Zimbabwe and Geo Associates and demonstrates the Zimbabwe Government's commitments to implementing investor friendly reforms and promoting and protecting foreign investment. The PSA will ensure that a predictable, stable and transparent legal and fiscal regime is put in place that is commensurate with terms in the region, follows international best industry practice, meets the country's aspirations and provides investors and the country with a fair share of any developed resources.

Preferred Contractor selected for seismic acquisition campaign in 2021

Following the completion of the field reconnaissance program and following receipt of submissions from multiple vendors, the Company has selected it preferred contractor to undertake a seismic acquisition campaign in 2021. The Company will commence detailed planning post formal contract award to enable the acquisition campaign to commence following the conclusion of the rainy season. The Company is planning to acquire a minimum of 400 line km of 2D seismic which exceeds the work program obligations for the current (2nd) exploration period.

Managing Director Comments

"It is pleasing to have concluded the approval for the PEDPA with the Republic of Zimbabwe and to have received a farm-in offer for our Cabora Bassa project which sets the Company on a positive path for a transformational 2021. Our progress of concluding the Production Sharing Agreements and the Farm Out process has been severely impacted by the pandemic restrictions which have been in place for most of the year, coupled with an extremely challenging oil industry environment.

However, in the back half of the year as the oil price environment improved and in-country approvals such as the renewal of our licence for a second exploration period, EIA approval and progress on the PSA being made; farm-in interest in the project as an attractive, low cost and high potential asset gained momentum from multiple parties. The Company is working to complete the various agreements as soon as possible in order to conclude a transaction, commence the seismic acquisition and basin opening high impact drilling campaign."

Investor Briefing

Invictus Energy Ltd ("Invictus" or the "Company") (ASX:IVZ) is pleased to invite investors and shareholders to the Invictus Energy Ltd Webinar to be held on Tuesday 22 December 2020 at 12:00 pm AEDT / 09:00 am WST

Invictus Managing Director, Scott Macmillan, and Non-Executive Chairman, Dr. Stuart Lake, will present the updated Investor Presentation, with a question and answer session to follow.

Details of the event are as follows:

Event: Invictus Energy Shareholder Briefing

Presenters: Managing Director Scott Macmillan & Non-Executive Chairman Dr. Stuart Lake

Time: Tuesday 22 December 2020, 12:00 pm AEDT / 09:00am WST

Where: Zoom Webinar, details to be provided upon registration.

To register your interest for the webinar please click through to the link below.

https://us02web.zoom.us/webinar/register/WN_LpeEKz4CTw2sJLQmI0_RcQ

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www.invictusenergy.com

After registering, you will receive a confirmation email containing information about joining the webinar. Participants will be able to submit questions via the Panel throughout the presentation, however, we encourage shareholders to send through questions via email beforehand to [e-mail]

Authorised for release by the Board

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www.invictusenergy.com

For further information on Invictus Energy, please visit the Company's website at www.invictusenergy.com

About the Cabora Bassa Project

The Cabora Bassa Project encompasses the Mzarabani Prospect, a multi-TCF and liquids rich conventional gas- condensate target, which is potentially the largest, undrilled seismically defined structure onshore Africa. The prospect is defined by a robust dataset acquired by Mobil in the early 1990s that includes seismic, gravity, aeromagnetic and geochemical data.

#Cautionary Statement: The estimated quantities of petroleum that may be potentially recovered by the application of a future development project relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation are required to determine the existence of a significant quantity of potentially movable hydrocarbons. Prospective Resource assessments in this release were estimated using probabilistic methods in accordance with SPE-PRMS standards.

The Company is not aware of any new information and that all material assumptions and technical parameters underpinning prospective resource estimate continue to apply and have not materially changed

*Giant fields are conventional oil or gas fields with a recoverable reserve of 500 MMboe or more as defined by the American Association of Petroleum Geologists (AAPG)

*Elephant fields are conventional oil or gas fields with a recoverable reserve of 1 Billion boe (1,000 MMboe) or more as defined by the American Association of Petroleum Geologists (AAPG)

SG 4571 - Special Grant Permit 4571 was granted in August 2017, the first exploration work programme has been completed. Invictus has an 80% equity stake in SG4571 via its subsidiary Geo Associates (Private) Limited

For further information, please contact:

Scott Macmillan

Managing Director

P + 61 (08) 6102 5055 [e-mail]

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www.invictusenergy.com