Kinetiko Energy Ltd. provided update on its significant on shore gas exploration and production development activities. Third Core Well Spudded in ER270: The new core well is approximately 5km West of recently completed and successful core well 270-03C and is approximately 10km from South Africa's gas pipeline, the Lily Pipeline, which feeds the industries of the KwaZulu-Natal midlands and coastal cities. Core well 270-05C is designed to test the potential of the sediments overlaying the southerly dipping basement structures.

This core well is anticipated to provide deeper, higher-pressured gassy sands and coal sequences that potentially extend from successful core well 270-03C developing a new fairway for future gas production. PASA Renews Exploration Right 271: The PASA renewal of Exploration Right 271 covers an area of approximately 1,288km2 supporting the Company's pilot production site at Amersfoort, the two Liquefied Natural Gas production projects and the planned development of the Industrial Development Corporation of South Africa joint venture program of exploration and production activities over the next 24 months. Following the Minerals and Petroleum Resources Development Act of 2002, Section 81:(4), under which the Company is entitled to continue with exploration and appraisal operations, the renewal granted is for the first of potentially three (3) renewal periods of two (2) years.

The company has commenced preparation of its application for a Production Right over this exploration right which would be valid for an initial period of 30 years and thereby negate the need to reapply for further renewal periods. SLR has commenced Production Right application activities Kinetiko has contracted SLR Consulting (SLR), global leaders in environmental and advisory solutions, to lead the process for a Production Right application being submitted. The process includes, inter alia, studies in air quality, hydrogeology, surface environment and community engagements.

Due to SLR's experience and long relationship successfully advising the Company, there is confidence the production right can be obtained before the end of the year well inside the estimated timeframe for commercial production commencement. Kinetiko's policy is one of great care towards the environment and local communities where it has already undertaken activities for over a decade. Exploration Acceleration: A second coring rig is being prepared to accelerate the Company's exploration program across the two blocks, ER270 and ER272.

Once the current approved exploration program of three core wells in each block is completed, the rigs will move to ER 272 to commence drilling near Sasol's liquid fuels refinery at Secunda. In addition, tenders have been delivered for the provision of larger rigs for the second half of the year drilling program in ER 271 focused on completing nine wells - five being designed as producers and four as full appraisal wells capable of becoming producers, all of which have already been approved by PASA.