TSX.V: ADL

A TSX-V Listed Oil and Gas Company

Exclusively Focused on the East Mediterranean

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Go Israel November 2012

TSX.V: ADL

Forward Looking Statements

Certain statements contained in this presentation, and in certain documents incorporated by reference in

this presentation, constitute "forward-looking statements". All statements other than statements of

historical fact contained in this presentation, including, without limitation, those regarding the

Corporation's future financial position and results of operations, strategy, plans, objectives, goals and

targets, future developments in the markets where the Corporation participates or is seeking to

participate, and any statements preceded by, followed by or that include the words "believe", "expect",

"aim", "intend", "plan", "continue", "will", "may", "would", "anticipate", "estimate", "forecast", "predict",

"project", "seek", "should" or similar expressions or the negative thereof, are forward-looking statements.

These statements are not historical facts but instead represent only the Corporation's expectations,

estimates and projections regarding future events. These statements are not guarantees of future

performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore,

actual results may differ materially from what is expressed, implied or forecasted in such forward-looking

statements. Additional factors that could cause actual results, performance or achievements to differ

materially include, but are not limited to, those discussed under "Risk Factors" in the short form

prospectus to which this presentation relates. Management provides forward-looking statements because

it believes they provide useful information to readers when considering their investment objectives and

cautions readers that the information may not be appropriate for other purposes. Consequently, all of the

forward-looking statements made in this presentation are qualified by these cautionary statements and

other cautionary statements or factors contained herein, and there can be no assurance that the actual

results or developments will be realized or, even if substantially realized, that they will have the expected

consequences to, or effects on, the Corporation. These forward-looking statements are made as of the

date of this presentation and the Corporation assumes no obligation to update or revise them to reflect

subsequent information, events or circumstances or otherwise, except as required by law.

The forward-looking statements in this presentation are based on numerous assumptions regarding the

Corporation's present and future business strategies and the environment in which the Corporation will

operate in the future, including assumptions regarding expected yields, future prices, business and

operating strategies, and the Corporation's ability to operate its production facilities on a profitable basis.

Some of the risks which could affect future results and could cause results to differ materially from those

expressed in the forward-looking statements contained herein, including risks associated with the

Corporation, such as lack of revenue, risks associated with the Corporation's business, such as the

failure to obtain or maintain necessary licenses, and risks associated with the common shares of the

Corporation, such as stock market volatility.

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Source: USGS, Levant Basin

TSX.V: ADL

Currently Israel Imports 99% of Consumption Mainly from Azerbaijan and others

Nov 17, 2012: Brent $109.01 or $26 million each day not including transportation and other fees

Israel’s Oil Importation

Source: Ministry of Energy and Water Resources

Avg. 238,000 BOPD

TSX.V: ADL

The Opportunity

East Mediterranean

• Host of two of the largest worldwide gas discoveries

of the decade

• Oil - the next resource headline story for Israel

• USGS estimates Levant Basin 122TCF gas,

1.7BBbL oil

• Recent estimates on the Mesozoic oil potential at

Leviathan (gross unrisked resource) 210 MMBOE –

1.5BBOE, Drill Rig mobilized

• Syrian Arc Commercial Production in Syria and

Egypt, associated structures form the oil trend in

Israel

• Regional demand for oil - Israel currently imports

238,000 BOPD, 100% of its demand

• International E&P companies being considered

for Leviathan

Adira Energy

• Pure & exclusive exposure to the East Med offshore

oil and gas discovery region

• Looking for oil where it has already been found

• Major working interest and operator of three

offshore licenses

• Leveraged interest through back in rights, royalties

& carries

• NI 51- 101 Resource Reports complete on

Gabriella, Yitzhak and Samuel licenses

• Licenses near infrastructure, near shore, and

technically routine

• Board, management and technical teams with

extensive knowledge of region and experience in

public markets

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TSX.V: ADL

Israel’s Oil Trend Project Best Estimate Gross

Yam Hadera Modiin

133 mmbo

Yitzhak Adira

79 mmbo

Gabriella Adira

110 mmbo (contingent)

Shemen Shemen

270 mmbo

Samuel Adira

66 mmbo

TOTAL 658 mmbo

*Public disclosures

TOTAL ADIRA GROSS 255 MMBO

TOTAL ADIRA NET 88 MMBO* (*Including buy back

rights, excl royalties)

TSX.V: ADL

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The Syrian Arc East Mediterranean Production

Adira Energy

TSX.V: ADL

East Mediterranean Syrian Arc Ridge SSW NNE

Top

Zohar

(* Not Deep Enough)

Yam-2

~800 BOPD

Yam Yafo-1

~800 BOPD

P Gabriella-1 Delta-1

NDE*

P Yitzhak-1

Shemen Gabriella Yitzhak

P Gabriella - 1

Delta -1

P Yitzhak -1

Yam Yafo-1

Gabriella & Yitzhak Structures

TSX.V: ADL

3D seismic survey

COMPLETE

Processing & interpretation

COMPLETE

Resource Report

COMPLETE

Procurement of long lead items and

rig contract

COMPLETE

Spud well

Q1/Q2 2013

Target: Oil Jurassic fractured carbonates

Target: Gas Cretaceous limestone and sands

Miocene stratigraphic

Target: Condensate Cretaceous limestone and sands

Miocene stratigraphic

Exploration: 587 Km2 Dual Azimuth 3D completed Jan 2011 by Adira

(WesternGeco), Processing completed by CGG Veritas

Prior Drilling: Yam Yafo-1 Well: Drilled in 90’s to 5,823m tested 800 bopd (440 API)

Drilling: Shallow water 127 to 220 meters. Floater

Economic Interest: 10%(1) WI; 15% back-in option from Modi’in at cost; 2.5% Carry

from Tohar; up to 10% ORRI from Tohar and Modiin; mngmnt

fees

Partners: Brownstone Energy 15%, Modi’in Energy 70%, Tohar 5%

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Gabriella Structure- Depth

Gabriella License (96,371 Acres) Operator: Adira Energy

2C (Best Estimate) Contingent Oil (Jurassic): 110.1 MMBO

Yam Yafo-1

P-Gabriella 1

(1)Working interest subject to certain conditions including approval from Israel Minister of Energy and Water

TSX.V: ADL

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Faults and Fracture Orientation at Jurassic Target Horizons

Gabriella Structure

TSX.V: ADL

Top Jurassic (Yam)

Delta

Top Zohar

Top Barnea

Base Barnea

Within Shderot

P-Gab Dev

Within Delta Within Inmar – 920 m Top Zohar Base Barnea – 560 m

dx

Azimuth 20o NNE SSW

Opt 3

-5200m

Merg

-5200m

-4850m

-4850m

Merg

TSX.V: ADL

July 2012

Noble Drilling contact/ rig secured

Q1 2013 Spud Date

June 2013 Drilling Deadline

Adira’s Core Asset - Gabriella

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Economical Factors % Breakdown Cost Attributable to Adira

10% working interest 10% $9.6 M

2.5% carry 2.5% ($2.4 M)

1.2% operator fees, 4.25%

management fee prior to discovery 3.9% ($3.8 M)

Back Pay after discovery ($1.1 M)

Adira’s Net cost to Drill

3.6%

$2.3 Million

Total Cost to Adira

Geological Factors

• 110 MMBO contingent oil

• Target drilled in the ‘90’s

• Close to infrastructure,

shore

• Good quality oil (44° API)

• Block located on the

Syrian Arc (proven

reserves, production)

Additional Economic Benefits:

•Up to 10% Overriding Royalties & management fees post discovery

•15% back-in right, within 6 months post discovery

Gross Cost for Dry Well – $96 Million

TSX.V: ADL

Adira

• Innovative

– Halliburton for well design • Global technology and best practices for design and implementation

– In house geoscientists • Work collaboratively with Halliburton for most efficient program

– New technology • Dual axis 3-D

• Petrel technology to properly image fractured carbonate potential

– Geo-steering • Finding and drilling the “sweet spots” of the reservoir in real time

– Utilizing Intecsea to create prototype development scenarios • Hub concept to keep unit costs down

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TSX.V: ADL

Summary - The Oil Potential

• Oil is the Next Resource Headline for Israel

– Market immediately available

• Upside Potential Along Syrian Arc Oil Trend

• Government Supportive

– Security of supply

– Daily importation approximately $25 million/day

• Funds going to other countries

– Internal production reduces dependency and costs

– State additionally benefits through tax and royalty to producers

• Risks Minimized

– Shallow water depths

– Projects are not technically challenging and near shore

– Much of the internal infrastructure already in place

• Pipelines and refining capacity

• Leveraged with additional interest through carries, back in rights and royalties

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TSX.V: ADL

Corporate Office:

Canada

120 Adelaide Street West, Suite 1204

Toronto, Ontario

M5H 1T1

Israel Office:

12 Abba Hillel Silver, 12th Floor

Ramat Gan, 52506

Canada:

Alan Friedman

Exec. Vice President, Corporate Development

+1 416 250 1955

Julia Maxwell

Manager, Investor Relations

info@adiraenergy.com

+1 416 361 2211

Israel:

Gadi Levin

Chief Financial Officer

+972 (0) 3 373 0166

www.adiraenergy.com

info@adiraenergy.com

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Contact Information