Whitebark Energy : Half Year Financial Statements

ABN 68 079 432 796

Condensed consolidated interim financial report for the six months ended

31 December 2021

The Directors present their report together with the consolidated financial report for the half-year ended 31 December 2021 and the review report thereon.

Duncan Gordan	Non-Executive Chairman
Matthew White	Non-Executive Director
Giustino Guglielmo	Non-Executive Director
Company Secretary
Kaitlin Smith
Half Year Summary

Directors

The Directors of the Consolidated Entity at any time during or since the end of the half-year to the date of this report are:

Whitebark Energy Limited ("Whitebark" or the "Company") completed a thorough strategic review of its assets, cost base and growth strategy in July 2021 and the Company implemented a number of changes during first half FY22. This includes the appointment of Mr Giustino Guglielmo to the Board of Directors, a reduction in the operating cost base of the Company's Canadian and Australian assets and completion of an independent review of booked 1P and 2P reserves. In addition, Whitebark has worked closely with the Australian Securities Exchange in respect to the reinstatement of its securities to official quotation.

Production revenue (net of royalties) for the half year was $1,936,909 (31 December 2020: $1,343,517) and the total comprehensive loss for the half year was $646,300 (31 December 2020: Loss $13,473,013).

At the end of the half-year the Company had $422,229 (30 June 2021: $515,883) in cash.

Capitalised exploration and evaluation expenditure was $129,535 (30 June 2021: NIL) and developed and producing plant and equipment was $3,459,961 (30 June 2021: $3,614,254).

As at 31 December 2021, 4,373,125,551 ordinary shares (30 June 2021: 4,373,125,551), no listed options (30 June 2021: NIL) and 177,800,000 unlisted options (30 June 2021: 197,800,000) were on issue in the Consolidated Entity.

Review of Operations

Canadian Operations

H1 FY2022

Wizard Lake Rex Oil Field

(WBE 100% WI AT 31 DECEMBER 2021)

Production

Wizard Lake Rex Oil Field ("Wizard Lake") production for the half was 12,250 bbls oil and 141,395 mcf gas which averaged 67 bopd and 768 mcfpd gas, equating to approximately 35,816 barrels of oil equivalent, or 194 boepd. Production averaged 59 bopd and 724 mcfpd in December 2021, which equates to 179 boepd over the final month of the half.

Operations

All Wizard Lake production wells required short periods of downtime to facilitate standard operational maintenance and workovers during the period. The following maintenance work was completed successfully and the effect on overall production was minimised via sequential shutdowns in August 2021:

• • Rex-1 - the corroded polished rod was replaced in August 2021 which required one day of downtime and maintained consistent recovery post completion];

• • Rex-2 - Whitebark mobilised a service rig to the site in August 2021 to complete wear and tear maintenance works including replacement of the Rex-2 sucker rods and well-bore pump. Overall production was initially impacted by +30%and returned to steady state by August 30

• • In addition, September 2021 production was impacted by a failure of the rented surface pumping unit (hydraulic pumpjack) which was replaced at the cost of the rental company on September 27.

• • Rex-3 - the bottom-hole pump was replaced in August 2021 due to frac sand production wear. September 2021 production was also impacted by gas-locking and the bottom-hole pump was replaced with a new model to resolve this issue. The well subsequently returned to steady-state production on September 15.

The Company continues to pursue opportunities to optimise the field through minimising overheads and stabilising production and evaluate the preferred projects for capital investment going forward.

Land Tenure

The majority of Prairie Sky-held freehold leases at Wizard Lake had primary terms expiring 29 November 2021. Freehold Leases can be extended by the drilling of a well, payment of extension bonuses, or renegotiation and expiring freehold leases were successfully renewed during the period with no attendant work commitments.

Rebranding of Salt Bush Energy

During November 2021, Whitebark advised that the Government of Alberta, by a Certificate of Amendment, under the Business Corporations Act, approved the change of name of its subsidiary "Salt Bush Energy Ltd." to "Rex Energy Ltd." effective 13 August 2021.

Rebranding of Saltbush Energy to Rex Energy Ltd reflects the name of the hydrocarbon-producing formation at Wizard Lake. Namely, the "Rex" formation is a Member of the Cretaceous Lower Manville Group stratigraphic division and is the key focus of the Company's Wizard Lake development strategy. In addition, T. rex is the geological emblem of Alberta). Re-branding was considered appropriate to reflect Whitebark's change of management and renewal of the Company to service providers. The change was communicated to clients, contractors, suppliers, the Alberta Energy Regulator (AER) and other regulatory bodies during November 2021. The new logo is shown below:

Western Australian Operations

Warro Gas Project (Whitebark WI 100%)

The Whitebark Board of Directors is currently assessing the Warro Gas Project to determine whether it is to be retained or divested to focus on core projects.

Events Subsequent to 31st December 2021

Capital Raising

On 10 March 2022, Whitebark announced its intention to complete a 1-for-2 non-renounceable entitlement offer at an issue price of $0.002 per share with one (1) free attaching option for every two (2) shares subscribed for to raise up to $4.4 million (before costs) ("Offer"). The Company will issue up to 2,186,562,776 new ordinary Whitebark shares and up to 1,093,281,388 new Whitebark options on completion of the Offer.

The Offer closing date is 27 April 2022 and Offer proceeds will be allocated towards the acquisition of currently rented storage and pumping equipment, drilling of the Rex-4 development well, working capital and transaction/administration costs of the Offer.

ASX Reinstatement

The Company remains in discussions with the ASX with respect to the reinstatement of its securities to official quotation. The reinstatement conditions are outlined in Schedule 1 of the ASX Announcement titled "Prospectus - Non-Renounceable Issue" (released 10 March 2022) and include completion of the Offer and receipt of the minimum raise amount being $2.5 million.

The Company has received confirmation from the ASX that it will, subject to satisfaction of the reinstatement conditions, allow reinstatement to the official list to occur.

The Auditor's Independence Declaration under section 307C of the Corporations Act 2001

The Auditor's Independence Declaration is set out on page 9 and forms part of the Directors' report for the half-year ended 31

December 2021.

Dated at Sydney this 12 day of April 2022

Signed in accordance with a resolution of the directors:

Director

Level 11 | 1 York Street | Sydney | NSW | 2000

GPO Box 4137 | Sydney | NSW | 2001

Auditor's Independence Declaration

Under Section 307C of the Corporations Act 2001

To the Directors of Whitebark Energy Limited

t: [phone] | f: [phone]

I declare that, to the best of my knowledge and belief, in relation to the review for the half-year ended 31 December 2021, there have been:

• (i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and

• (ii) no contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Whitebark Energy Limited and the subsidiaries it controlled during the financial period. LTD AND THE ENTITIES IT CONTROLLED DURING THE FINANCIAL PERIOD.

Mark Nicholaeff Partner

Sydney

Dated: 12 April 2022

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