Real Energy : Placement SPP to fund drilling testing of Venus-1

ASX ANNOUNCEMENT

Placement and SPP to fund drilling and testing of Venus-1 CSG Well

• Drilling Venus-1 CSG well to take place in October
• Placement raising $800,000 with SPP launched raising $200,000
• Venus-1is to be drilled as a new vertical well to approximately 680 metres - drilling contractor selected
• Project Venus' ATP 2051P area totals 154 km2 (Real Energy 50%/Strata-X Energy 50% JV) and is located within the productive Walloon CSG fairway of the Surat Basin

Sydney: 21 September 2020, Real Energy Corporation Limited (ASX: RLE) ("Real Energy"), an Australian east coast focused gas company with interests in the Surat and Cooper Basins, is pleased to announce that it raised $800,000 before costs through a placement to sophisticated and institutional investors in Australia of 40,000,000 shares in the Company at a price of A$0.02 per Share together with half an option for each share subscribed. Each option will be unquoted and exercisable into one Share at an exercise price of A$0.04 up until 30 September 2022.

The Company has in addition launched a Share Purchase Plan (SPP) in order to provide all eligible Real Energy Shareholders or Securities holders with the opportunity to increase their shareholding. The Company is pleased to provide details of its Share Purchase Plan Offer (Offer or SPP) and a copy of the SPP booklet is attached to this announcement.

Under the SPP, Real Energy is giving Eligible Shareholders or Securities Holders the opportunity to purchase up to $30,000 worth of fully paid ordinary shares in Real Energy (New Shares), irrespective of the size of their shareholding, without incurring brokerage or transaction costs. Applications may be made in increments of $1,000 for between $1,000 and $30,000 worth of New Shares. The New Shares will be issued, together with half an option with an expiry date of 30 September 2022 at a 4 cents exercise price for each New Share subscribed. The pricing of the New Shares will be at the lower of: (a) $0.020 (2.0 cents), or (b) a 10% discount to the volume weighted average price (VWAP) of Real Energy's Shares calculated over the last 10 days on which sales of Shares are recorded on the ASX up to and including the Closing Date.

Real Energy intends to raise $200,000 under the SPP which is not underwritten but reserves the right to increase or decrease the amount raised at its discretion. Real Energy also reserves the right to scale back applications under the SPP.

Project Venus CSG Pilot to commence

The post stimulation water influx rate and other data are needed to design the JV's first Walloon CSG pilot well. Venus- 1 will be equipped with a downhole pump, surface facilities and water handling methods as required to carry out a controlled drawdown flow test over several months.

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The Venus Pilot drilling and set up is planned to commence in October 2020 and the subsequent flow testing is expected to continue into early 2021. The flow testing is designed to prove initial gas breakout and increasing gas flows over the controlled drawdown period as required to model and predict future gas flow rates and potentially commercial gas flow rates.

The results of the flow test will also be used to either expand the pilot or, if commercial flow rates are achieved, commence an aggressive appraisal program designed to certify sufficient reserves for the Project Venus JV to secure gas sales agreements to allow for commercial field development.

Placement Details

The New Shares will be issued on the same terms and rank equally in all respects with the existing fully paid ordinary shares in the Company. The allotment of the Placement is not subject to shareholder approval and will fall within the Company's 15% placement capacity under ASX LR 7.1 (40,000,000) New Shares and additional 10% placement capacity under ASX LR7.1A (20,000,000 Options).

About Project Venus

The 154 km2 Project Venus (Strata-X 50%/Real Energy 50% JV) is located within the Walloon CSG fairway in the Surat Basin. An independent expert has certified, on a best estimate basis, a Prospective Gas Resource of 658 Bcf (694 PJ).(1) Given the location of this tenement immediately adjacent to gas infrastructure and within a proven giant gas fairway, the Venus Project offers the potential to achieve early cash flows.

As announcement on 15 July, Strata-X Energy and Real Energy have agreed to merge, subject to shareholder approval,and rename the merged company Pure Energy. Post the merger, Pure Energy will have 100% of Project Venus.

For further information, please contact:

Real Energy: Managing Director - Scott Brown [phone]

Released through: Ben Jarvis, Six Degrees Investor Relations, [phone]

Or visit the website: www.realenergy.com.au

Twitter:https://twitter.com/RealEnergyCor

Geological Information

The geological information in this announcement relating to geological information and resources is based on information compiled by Mr Lan Nguyen, who is a Member of Petroleum Exploration Society of Australia and the Society of the Petroleum Engineers and has sufficient experience to qualify as a Competent Person. Mr Nguyen consents to the inclusion of the matters based on his information in the form and context in which they appear. The information related to the results of drilled petroleum wells has been sourced from the publicly available well completion reports.

About Real Energy Corporation

Real Energy is an Australian east coast focused gas company with interests in the Cooper Basin, Australia's most prolific onshore producing petroleum basin, and the Surat Basin in Queensland. Real Energy has 100% ownership in 2 large permits in Queensland - ATP 927P & ATP1194PA, and a 50:50 JV with Strata X Energy Limited (ASX: SXA) to develop the 154km2 ATP2051 permit in the Surat Basin as a Coal Seam Gas project. The Company is also looking to develop a Hydrogen Project in Queensland.