Target Energy : Quarterly Activities and Cash Flow Report 31 March 2019

ASX Announcement

29 April 2019

Quarterly Report 31 March 2019

1.Operations

There were no oil and gas activities to report during the quarter as the Fairway Project was sold, effective 7 December 2018.

2.Corporate

2.1 Legal

The current litigation in relation to the Fairway Project is ongoing.

2.2 Share Consolidation

Subsequent to the recapitalisation on 21 December 2018, the Company undertook a 40:1 consolidation and advice regarding post‐consolidation holdings was posted to shareholders on 7 January 2019.

2.3 Board Changes

During the quarter, Ms Carol New and Mr Craig Hall were appointed as non-executive directors following the resignations or Mr Stephen Mann and Mr Laurence Roe. Ms New was also appointed as Company Secretary following the resignation of Mr Dean Calder.

2.4 New Opportunities

The current Board continues to assess opportunities for a resources project that may be a suitable transaction. The Company's securities will remain suspended from ASX until the Company acquires a new undertaking and, if required, re‐complies with the requirements of Chapters 1 and 2 of the ASX Listing Rules.

For and on behalf of TARGET ENERGY LIMITED

Corporate information

ASX Code:

TEX

Board of Directors

Matthew Battrick, Director

Craig Hall, Director

Carol New, Director

Carol New, Company Secretary

ABN

73 119 160 360

Contact details

Unit 1/24 Mumford Place,

Balcatta WA 6021

Tel: [phone]

E:[e-mail]

W:www.targetenergy.com.au

Craig Hall

Director

TARGET ENERGY LIMITED Address: Unit 1/24 Mumford Place, Balcatta WA 6021

1

Mailing Address: Unit 1/24 Mumford Place, Balcatta WA 6021 ABN 73 119 160 360 | Ph [phone]

Fax [phone] | email [e-mail] | www.targetenergy.com.au

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity

quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

Target Energy Limited

ABN	Quarter ended ("current quarter")
73 119 160 360	31 March 2019

Consolidated statement of cash flows

Current quarter	Year to date
$A'000	(9 months)
	$A'000

1.	Cash flows from operating activities
1.1	Receipts from customers	-	-
1.2	Payments for
	(a)	exploration & evaluation	-	(9)
	(b)	development	-	-
	(c)	production	-	-
	(d)	staff costs	(76)	(103)
	(e) administration and corporate costs	(229)	(655)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	-	-
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid	-	-
1.7	Research and development refunds	-	-
1.8	Other (provide details if material)	-	-
1.9	Net cash from / (used in) operating	(305)	(767)
	activities

2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a) property, plant and equipment	-	-
	(b)	tenements (see item 10)	-	-
	(c)	investments	-	-
	(d)	other non-current assets	-	-
+ See chapter 19 for defined terms
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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Consolidated statement of cash flows

Current quarter	Year to date
$A'000	(9 months)
	$A'000

2.2	Proceeds from the disposal of:
	(a) property, plant and equipment	-	-
	(b)	tenements (see item 10)	-	-
	(c)	investments	-	-
	(d)	other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	-
2.6	Net cash from / (used in) investing	-	-
	activities

3.	Cash flows from financing activities
3.1	Proceeds from issues of shares	-	-
3.2	Proceeds from issue of convertible notes	-	-
3.3	Proceeds from exercise of share options	-	-
3.4	Transaction costs related to issues of	-	-
	shares, convertible notes or options
3.5	Proceeds from borrowings	285	763
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans and	-	-
	borrowings
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	-	-
3.10	Net cash from / (used in) financing	285	763
	activities

4.Net increase / (decrease) in cash and cash equivalents for the period

4.1Cash and cash equivalents at beginning of

	period	23	7
4.2	Net cash from / (used in) operating	(305)	(767)
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	-	-
	(item 2.6 above)
4.4	Net cash from / (used in) financing activities	285	763
	(item 3.10 above)
4.5	Effect of movement in exchange rates on	-	-
	cash held
4.6	Cash and cash equivalents at end of	3	3
	period
+ See chapter 19 for defined terms
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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

5.Reconciliation of cash and cash equivalents

at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

Current quarter	Previous quarter
$A'000	$A'000

5.1	Bank balances	3	23
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end of	3	23
	quarter (should equal item 4.6 above)

6.	Payments to directors of the entity and their associates	Current quarter
		$A'000
6.1	Aggregate amount of payments to these parties included in item 1.2	74.5
6.2	Aggregate amount of cash flow from loans to these parties included	-
	in item 2.3

6.3Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

Director salary and director fees

7.	Payments to related entities of the entity and their	Current quarter
	associates	$A'000
7.1	Aggregate amount of payments to these parties included in item 1.2	-
7.2	Aggregate amount of cash flow from loans to these parties included	-
	in item 2.3

7.3Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

N/A

+ See chapter 19 for defined terms
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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

8.Financing facilities available

Add notes as necessary for an understanding of the position

8.1Loan facilities

8.2Credit standby arrangements

8.3Other (please specify)

Total facility amount	Amount drawn at
at quarter end	quarter end
$A'000	$A'000
500	285

8.4Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

Loan from M Fotios and Associated Entities, $500,000, 10% pa, 30 June 2019. Loan is secured by future proceeds received by Target as a result of its current legal action in the US.

9.	Estimated cash outflows for next quarter	$A'000
9.1	Exploration and evaluation			-
9.2	Development				-
9.3	Production				-
9.4	Staff costs				100
9.5	Administration and corporate costs			200
9.6	Other (provide details if material)			-
9.7	Total estimated cash outflows			300
10.	Changes in	Tenement	Nature of interest	Interest at	Interest
	tenements	reference		beginning	at end of
	(items 2.1(b) and	and		of quarter	quarter
	2.2(b) above)	location
10.1	Interests in mining		N/A
	tenements and
	petroleum tenements
	lapsed, relinquished
	or reduced
10.2	Interests in mining		N/A
	tenements and
	petroleum tenements
	acquired or increased

+ See chapter 19 for defined terms
1 September 2016	Page 4