Pantheon Resources : Interim Report (Unaudited) for the Sixth Months Ended 31/12/20

PANTHEON RESOURCES PLC INTERIM REPORT (UNAUDITED)

FOR THE SIX MONTHS ENDED 31 DECEMBER 2020

STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2020

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The half year ended 31 December 2020 and the period beyond has been one of continued progress for Pantheon. Even despite the sustained detrimental COVID induced impacts on the global oil and gas market, the Company was able to make a number of significant achievements since 1 July 2020, as outlined below:

Spudding of Talitha #A well Post Period End

The Talitha #A well was spudded in January 2021 and reached a total depth of c 10,456 ft and drilled through the Shelf Margin Deltaic sequence along with a number of secondary targets including (a) the Slope Fan System, (b) the Basin Floor Fan, both being within the Brookian section, as well as (c) the deeper and independent Kuparuk formation. Encouragingly, analysis from logs, sidewall cores and other data obtained during drilling indicates five potentially productive zones in the (from deepest to shallowest) Kuparuk, Lower Basin Floor, Upper Basin Floor Fan sequences, Slope Fan and Shelf Margin Deltaic horizons. Geological data in the Kuparuk Formation, which was a secondary target in this well, was better than expected and warranted a change of plans to test this zone more comprehensively that our pre-drill plans which had prioritised the shallower Shelf Margin Deltaic. After an attempt to test the Kuparuk in the open well bore, the well was sidetracked some 80 ft from the original wellbore, a liner was set. The Kuparuk was perforated from 10,069 to 10,085 ft Measured Depth (10,062-10,078 ft True Vertical Depth). The reservoir pressure encountered was significantly higher than expected or seen in any of the offset wells, and with the exceptionally light oil that has been collected, a more methodical approach to ongoing operations has been required. Fracking and testing operations are now underway.

Granting of the Alkaid Unit

During the period, Pantheon's 100% owned Alaska subsidiary, Great Bear Pantheon was formally granted the Alkaid Unit of 22,804 acres from the State of Alaska, Department of Natural Resources ("DNR"). The granting of a unit is considered to be significant because it provides the Company tenure over the acreage, subject to the Company meeting certain minimum requirements including a commitment to the reprocessing of approximately 50 Square miles of 3D seismic (which is currently underway), as well as engagement of 3rd party specialists to produce an engineering study on a conceptual 'hot-tap' into the Trans Alaska Pipeline System ("TAPS"). There are no firm drilling commitments. In January 2020, the independent experts at Lee Keeling & Assoc., calculated a $595 million net present value (NPV10) for the Alkaid project (at the then prevailing realized oil price of $55/bbl). A major benefit of Alkaid over other projects on the Alaska North Slope is that wells can be brought onto production more rapidly after testing by trucking produced oil up to Pump Station #1, about 20 miles north of Alkaid. Alkaid's location, underneath and adjacent to the Dalton Highway and the Trans Alaska Pipeline System, allows the siting of a drill pad next to the Dalton Highway which offers the ability for year-round activity as well as other material advantages. Pantheon has a 100% working interest in Alkaid.

Granting of the Talitha Unit & receipt of Independent Experts Report

During the period, Great Bear Pantheon was also granted the Talitha Unit comprising 44,463 acres. The Talitha Unit has a drilling commitment which the Company believes it has met with the drilling of the Talitha #A well which was spudded in January 2021.

During the period an Independent Expert Report ("IER") was completed by Lee Keeling & Associates. The IER covered just one of the four targeted horizons at Talitha #A; the Shelf Margin Deltaic sequence. Highlights of the IER are summarized below:

• 304 Million Barrels of Oil ("MMBO") Prospective Resource (Recoverable)
• $2.7 billion NPV10, using a long-term Brent oil forward curve ranging from $45.84 to $54.89
• $8.92 NPV10 per barrel of oil and an Internal Rate of Return of 79.9%
• Field peak maximum production rate of 90,000 Barrels of oil per day ("BOPD") facility limited
• Average individual producing well EUR (estimated ultimate recovery) of 3.32 MMBO per well
• The LKA report confirmed that Talitha is an Appraisal project updip from discovered oil

• Located near the Dalton Highway & Trans-Alaska Pipeline (TAPS) allowing a phased development and minimizing upfront capex

Completion of $30.2 million fundraising & appointment of Canaccord Genuity as NOMAD/Broker

In November 2020, Pantheon raised approximately $30.2 million through the placing of 73,756,314 new Ordinary Shares at a price of 31 pence per Ordinary Share (the "Issue Price"). The fundraise was significantly oversubscribed and the new shares represented 14.7 per cent of the issued voting Ordinary Share capital of the Company prior to the fundraise. This fundraise allowed the Company to participate in the January 2021 lease sale in Alaska where it successfully acquired key strategic acreage contiguous to its existing projects, and to have sufficient funds to drill and test the Talitha #A well ultimately at a 100% working interest.

The Company also appointed Canaccord Genuity Limited as its sole Broker and Nominated Adviser in October 2020. With a strong franchise in the natural resources sector and established operations in the UK, North America, Canada and Australia, Canaccord was considered a natural fit for Pantheon.

Acquisition of 10.8% interest in Talitha Unit

Subsequent to the period end, in March 2021, Pantheon formally acquired 100% ownership of Borealis Alaska LLC. Borealis Alaska LLC owned a 10.8% working interest in each of the 16 leases in the 44,463 acre Talitha Unit. Pantheon paid a consideration of 14,272,592 ordinary shares for the 10.8% working interest. Upon completion, Pantheon owned a 100% working interest and an 86.0% net revenue interest in the Talitha Unit.

Leasing Activity

Pantheon also acquired a 100% interest in approximately 66,000 acres in the January 2021 State of Alaska's North Slope Areawide Lease Sale. The new leases are strategically positioned in two areas contiguous to Pantheon's current acreage on our northwestern, western, and eastern boundaries. Pantheon believes the new acreage to be of significant resource potential. Pantheon's acreage now totals approximately 160,000 contiguous acres.

East Texas

In February 2021, Pantheon formally exited East Texas with the transfer of 100% of our interests in both Polk and Tyler Counties to Neches Transport, a local operator. As a result of exiting East Texas, and in accordance with International Financial Reporting Standards as adopted by the EU ("IFRS"), the expenses for the East Texas Operation have been reclassified to "Discontinued Operations". This reclassification has been performed on both the current period and the comparative periods shown. The consideration for the sale was in the form of an agreement were the acquirer legally assumed the plug and abandonment liabilities of the East Texas Acreage. At the period end, an amount of $585,863 is classified as assets held-for-sale which represents the remaining written down balance for the East Texas Acreage. There is a corresponding liability held-for-sale which represents the previous plug and abandonment provision of $585,863 for the East Texas Acreage. The East Texas Acreage generated no revenue in the 2020 calendar year and the Group reported an operating loss for the 12 months ended 30 June 2020 of $1.5m from the East Texas Acreage. Further details are set out in note 3 to these accounts.

Financial & Corporate

The interim results show a loss for the period of $3.0 (2019: $2.2m) which was higher than the previous year largely as a result of a $1.6m one-offnon-cash accounting charge relating to the issuance of share options.

At 31 December 2020, cash and cash equivalents amounted to $29.8m (2019: $7.4m). Cash and cash equivalents as 26 March 2021 was $17.8m.

In November 2020, Pantheon raised approximately $30.2 million through the placing of 73,756,314 new Ordinary Shares at a price of 31 pence per Ordinary Share, a 72% premium to the previous fundraising price in mid 2019.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED 31 DECEMBER 2020

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	Notes	6 months	6 months
		ended 31	ended 31	Year ended
		December	December	30 June
		2020	2019	2020
		(unaudited)	(unaudited)	(audited)
		$	$	$
Continuing operations
Administration expenses		(2,501,541)	(1,852,048)	(3,667,635)
Share option expense		(1,585,904)	-	-
Impairment of exploration and evaluation
assets		-	-	(130,112)
Operating loss		(4,087,445)	(1,852,048)	(3,797,747)
Interest receivable		1,000	13,794	23,759
Loss before taxation		(4,086,445)	(1,838,254)	(3,773,988)
Taxation		1,124,124	383,768	965,681
Loss for the period from continuing
operations after taxation		(2,962,321)	(1,454,486)	(2,808,307)
Loss for the period from discontinued
operations	3	(54,415)	(752,384)	(14,170,288)
Loss for the period		(3,016,736)	(2,206,870)	(16,978,595)

Other comprehensive income for the period Exchange differences from translating foreign operations

Total comprehensive loss for the period

1,100,162 151,610 (47,800)

(1,916,574)

(2,055,260)

(17,026,395)

Loss per share from continuing operations:
Basic and diluted Loss per share	2	(0.57)¢	(0.29)¢	(0.56)¢
Loss per share from discontinued
operations:
Basic and diluted Loss per share	2	(0.01)¢	(0.15)¢	(2.83)¢

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31 DECEMBER 2020

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		Share	Share	Retained	Currency	Share	Non	Total
		capital	premium	losses	reserve	based	controlling	equity
						payment	Interests
		$	$	$	$	$	$	$
Group
At 1 July 2020	8,568,721	173,687,092	(29,608,911)	(268,637)	2,163,898	-	154,542,163
Net loss for the period	-	-	(3,016,736)	-	-	-	(3,016,736)
Other comprehensive
income: Foreign
currency translation	-	-	-	1,100,162	-	-	1,100,162
Total comprehensive
income for the period	-	-	(3,016,736)	1,100,162	-	-	(1,916,574)
Capital Raising
Issue of shares	973,583	29,207,500	-	-	-	-	30,181,083
Issue costs	-	(1,598,850)	-	-	-	-	(1,598,850)
Share option expense	-	-	-	-	1,585,904	-	1,585,904
Balance at 31
December 2020		9,542,304	201,295,742	(32,625,647)	831,525	3,749,802	-	182,793,726

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 31 DECEMBER 2019

		Share	Share	Retained	Currency	Share	Non	Total
		capital	premium	losses	reserve	based	controlling	equity
						payment	Interests
		$	$	$	$	$	$	$
Group
At 1 July 2019	7,966,075	164,044,720	(12,630,316)	(220,838)	2,163,898	(54,708)	161,268,831
Net loss for the period	-	-	(2,206,870)	-	-	-	(2,206,870)
Other comprehensive
income: Foreign
currency translation	-	-	-	151,610	-	-	151,610
Total comprehensive
income for the period	-	-	(2,206,870)	151,610	-	-	(2,055,260)
Capital Raising
Issue of shares	602,646	10,244,977	-	-	-	-	10,847,623
Issue of shares in lieu of
fees	-	(31,239)	-	-	-	-	(31,239)
Issue costs	-	(571,366)	-	-	-	-	(571,366)
Balance at 31
December 2019		8,568,721	173,687,092	(14,837,186)	(69,228)	2,163,898	(54,708)	169,458,589

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2020