Melbana Energy Limited advise that late on 31 December 2018 it signed a binding definitive farmout agreement with Anhui Modestinner Energy Co. Ltd.(AMEC) with respect to its Block 9 Production Sharing Contract in Cuba. The binding agreement follows on from the Letter of Intent signed by Melbana and AGMI. Under the terms of the farmout agreement, AGMI has corporately guaranteed the performance of AMEC which will fully fund 100% of all costs associated with the Block 9 PSC from 1 January 2019, including the drilling of at least three wells. The first two of these wells will be drilled prior to 1 November 2019 on Melbana's preferred exploration targets Alameda and Zapato. In the event of a discovery, the third well may be either an appraisal well on Alameda or Zapato or, if no discovery, an exploration well on the Piedra prospect. In all cases, the third well will be drilled prior to July 2020. AMEC is also responsible for providing any required guarantees and will provide Melbana with 12.5% of any Profit Oil.