ZIMBABWE: Invictus Energy Provides Quarterly Activities Report

• Petroleum Exploration Development and Production Agreement (PEDPA) signed with Republic of Zimbabwe
• PEDPA provides the licence holder the right to enter into a 25 year production licence following exploration periods
• Completed capital raise of $8m via Private Placement to sophisticated and institutional investors
• Proceeds from the capital raising to be applied to SG 4571 seismic acquisition campaign and ordering of long lead drilling items for Mzarabani-1 exploration well
• Funds will provide capital for Invictus to accelerate the Company’s exploration campaign throughout the remainder of CY21

Comments from Managing Director & CEO Scott Macmillan:  “This has been an excellent quarter for the Company which has seen us complete several significant milestones and build on our strong foundations. The completion of a strongly supported capital raise
has put the Company in an excellent position to complete our upcoming seismic acquisition program which will commence in Q2 and then lead to an eagerly awaited high impact basin opening drilling campaign. The execution of the PEPDA with the Republic of
Zimbabwe puts in place the necessary framework to rapidly develop the Cabora Bassa Project on exploration success and provide a 25 year production licence. We look forward to commencing the seismic acquisition campaign in the coming quarter which will unlock additional value for the Company and delineate the optimal drilling location to test the world class Mzarabani prospect.”

Petroleum Exploration Development and Production Agreement (PEDPA) Executed
Following approval from His Excellency President E.D. Mnangagwa, the PEPDA between Invictus’s 80% owned subsidiary, Geo Associates and the Republic of Zimbabwe was executed. The agreement was signed on behalf of the Government of the Republic of Zimbabwe by the Minister for Mines and Mining Development, Hon. Winston Chitando at a signing ceremony at State House in Harare on Friday 26 March 2021.

The PEDPA provides the framework for progression of the Cabora Bassa Project through the exploration, appraisal, development and production phases, the obligations and rights of each party, the minimum work program obligations to maintain the licence in good standing, and the security of tenure for the project duration. The PEDPA provides the licence holder the right to enter into a 25 year production licence following the exploration periods. The Company is currently in the 2nd exploration period.

The PEDPA also provides for Special Economic Zone (SEZ) status for the Cabora Bassa Project which will facilitate a host of fiscal and non-fiscal incentives over the life of the project including legal and fiscal stability, offshore banking, zero capital gains tax, tax holiday periods and 15% corporate rate thereafter.

Completion of $8m Capital Raise
During the quarter, the Company completed a significantly oversubscribed A$8 million capital raise via a share placement (“Placement’) to new and existing institutional and sophisticated investors. The A$8m capital raise before costs through the issue of 72.7 million new ordinary shares at an issue price of $0.11 and an attaching 1 for 2 option at a strike price of $0.17 with an expiry of 3 years.

Proceeds of the Placement will be applied towards:
• The upcoming 2D seismic campaign in SG 4571;
• Basis of well design;
• Long lead drilling items for the Mzarabani-1 exploration well;
• Drilling rig tender preparation; and
• General working capital

Award of Seismic Acquisition Contract to Polaris Natural Resources

Subsequent to the end of the quarter, the Company awarded a seismic acquisition contract to Polaris Natural Resources Inc. for the Company’s 2D seismic program in the Cabora Bassa Basin. The Company intends to conduct, process, and interpret a minimum of 400 line kms of 2D seismic in order to refine the Mzarabani-1 drilling location and well path and identify additional prospectivity for the upcoming drilling campaign.

The Company is also pleased to have Barry Meikle join the team as Seismic Project Manager. Barry is based in Zimbabwe and has extensive experience in onshore seismic acquisition projects in PNG with Total and Interoil, and project management expertise with oil field service companies in East Africa and is a valuable addition to the Invictus team.

Polaris will begin mobilising the seismic equipment and personnel to Harare in the coming weeks to undergo preparation for the acquisition before deploying to the field and commencing the data acquisition in Q2 CY2021.

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