Kinetiko Energy Ltd. provided the following update on its onshore gas exploration and production development activities. The non-binding Memorandum of Understanding (MOU) entered into with FFS Refiners Proprietary Limited (FFS) is considered material by Kinetiko as it demonstrates the nature of
commercial relationships that the Company is negotiating, which is integral to the Company's business model of establishing interest in local JV partners to co-develop and co-fund gas production fields in South Africa. These relationships have the potential of accelerating the exploration vision with funding support. In addition, FFS has the capacity to be an offtaker for gas produced and strengthens the market opportunities for Kinetiko's significant contingent gas resource. Finally, the independent certification of gas reserves and the ability of Kinetiko to increase its gas reserves will depend on the ability of the Company to establish that there is a credible market for gas produced in what is projected to be a number of producing gas fields.