1

31 July 2013

JUNE QUARTER 2013

Capital Details (as at 28 June 13, AUD)

Share Price $0.10

Shares on Issue 122.4m

Market Capitalisation $12.2m

Cash at Bank $3.4m

Drawn Debt $7.1m

Enterprise Value $15.9m

Po Valley Energy Limited (PVE) is an emerging gas and oil

exploration and development company with an expanding

portfolio of hydrocarbon assets in northern Italy.

The Company owns and operates two gas treatment plants,

with more gas and oil developments to follow.

Quarterly Activities Report For the June quarter and to the date of this report

HIGHLIGHTS — KEY DEVELOPMENTS

COMPANY OVERVIEW

ASX: PVE

Total gas production for the quarter from our

Castello and Sillaro gas fields combined was 4.7

million standard cubic metres (0.16 bcf)

Total gas production for the first half 2013 was

11 million standard cubic metres (0.4 bcf)

Revenue for the June quarter was € 1.3 million

(AUD 1.8 million)

Revenue for the first half 2013 was € 3.0 million (AUD 3.9 million)

Installation of the new three phase separator at Sillaro gas field was completed in July and production is

now running at around 72,000 standard cubic metres per day

Production from the Vitalba well was significantly reduced in June due to increased water production.

The future production prospects of the well are under review along with the carrying value of the field

Gradizza-1 well civil works were completed in June and drilling is planned for August (best estimate

Prospective Resources of 9.0 bcf of gas). Farmout partners secured for 25% equity in the well (with

promote)

New high-potential gas exploration licence, Tozzona, awarded in June

Drilling application for new Podere Maiar-1d within the Podere Gallina licence, Selva Stratigraphic pros-

pect, lodged in early July (best estimate Contingent Resources of 17 bcf of gas)

€ 20 million Reserve Based Lending (RBL) facility finalised with Nedbank and drawn down to € 5.0

million in May. Lloyds Bank facility repaid in full (€ 4.0 million)

New off-take agreement signed with Shell Italia S.p.A and implemented from 1 July

Cash at bank at 30 June 2013 was € 2.4 million (AUD 3.4 million)

2nd Q 2013 1st H 2013 Full 2012

Production Mscm

- Castello 0.81 2.31 5.33

- SIllaro 3.88 8.66 19.34

Total Production Mscm 4.70 10.98 24.67

Total Production bcf 0.16 0.39 0.85

Total Revenue €m 1.3 3.0 8.2

2012 - 2013 Gas Production and Revenue

For

per

sona

l use

onl

y

2 June 2013 Quarterly Activities Report

PRODUCTION During the quarter the Company completed the installation of the condensate separator equipment at Sillaro

gas field. The main level PL2 C1+C2 was

re-opened at an initial total rate of around

65,000 Scm/day.

Production has increased gradually to

72,000 Scm/day at the date of this report

and it is planned to increase up to ~75,000

Scm/day during the 3Q 2013. Total

production from the field for the 2Q 2013

was 3.88 million Scm (137 million standard

cubic feet).

At the end of May, the Vitalba field expe-

rienced an increase in water production.

Consequently it was considered prudent to reduce production rates from the field to around 5,000 Scm/day.

The total production from the field for the 2Q 2013 was around 816,000 Scm (29 million standard cubic feet).

Future production expectations from the field are under review but it is expected that production will conti-

nue at a reduced rate and, as a result, reserves are likely to be reduced when that review is completed.

The carrying value of the field is also under review in light of the reduced production outlook and a carrying

value impairment is likely.

DEVELOPMENT During the quarter, extensive work has been carried out in preparation for the feasibility study for the

offshore gas project Teodorico (previously denominated Carola / Irma by ENI), in the AR94PY area.

An independent advisor has been engaged for the pre-FEED study and related development plan

which are expected to be completed within year end.

Completion of the development plan is a critical step prior to application for a production concession for

the Teodorico gas field. The Company has initiated discussions with ENI on possible arrangements to

tie-in Teodorico gas to ENI’s Naomi-Pandora facilities, located 12 km SE. A 40 km2 second phase 3D

seismic dataset has been requested from ENI which will be incorporated in the first phase 80 km2 data-

set purchased in December 2012. We plan to reprocess the full 3D seismic dataset when received.

The production concession for the Bezzecca gas field is in the last stage of the regulatory approval

process. The Development plan for Santa Maddalena gas field in the Sant’Alberto production licence

application was approved for review by the Hydrocarbon Committee of the Ministry. After the

preliminary approval, the final production concession award will be subject to an EIA clearance from the

Region.

The drilling programs and related Environmental Impact Assessments (EIA) for the Zini-1, Canolo-1d

and -2d appraisal wells (within the Cadelbosco di Sopra licence) are under review by the Ministry and

the Emilia-Romagna Region.

For

per

sona

l use

onl

y

3 June 2013 Quarterly Activities Report

During the quarter the Company began preparation for the drilling of the exploration well Gradizza-

1, within the La Prospera licence. The well has a Quaternary sands target at a depth of 1,000

metres with best estimate Prospective Resources of 9.0 bcf of gas. The procurement process and

civil works have been completed and drilling is planned for August. In contrast to previous wells

drilled by the company, this exploration target is not a previously drilled and tested gas field and

has been independently technically evaluated to have an approximate 30% probability of success.

As previously announced, the Gradizza exploration well is farmed-out to Petrorep Italiana Spa and

Aleanna Resources, who will earn respectively a 15% and 10% working interest for a promote

toward the drilling costs of the well. PVE will retain both operatorship and the residual 75% interest.

Within the Podere Gallina Licence, the Company finalised the Geological & Geophysical work to

investigate the low risk Selva Stratigraphic prospects. A drilling location has been selected for a

new well named Podere Maiar-1d and the drilling application has been lodged for approval with the

Ministry. The well has a Pliocene sands target at a depth of 1,500 metres with best estimate

Contingent Resources of 17 bcf of gas.

During the quarter the Company progressed work on a promising new prospective area (Vitalba

West) in the Cascina Castello production concession, a short distance from the Castello gas

production facility. The technical team has worked on the 3D seismic survey data to finalise a well

location and a drilling program for the pro-

spect.

The La Risorta application for the explora-

tion licence is ongoing. The EIA study is

being evaluated by the Emilia-Romagna

and Veneto Regions.

In June 2013 the Company was awarded a

new exploration licence, Tozzona. The

area lies along the eastern border of the

existing ENI gas production licence contai-

ning the Santerno gas field (circa 35 bcf of gas produced to date). The Company is planning to

purchase a semi-regional grid of 2D seismic lines in order to complete the geological and geo-

physical studies aimed at evaluating already identified opportunities.

Torre del Moro application has received final EIA granting from the Emilia-Romagna region. The

final award of the licence from the Ministry will follow soon.

EXPLORATION & NEW VENTURES

For

per

sona

l use

onl

y

4

€1=AUD1.422 as at 30 June 2013 €1= AU$ 1.350 average for the 2Q 2013

€1= AUD1.318 average 1H 2013 Source: oanda.com

June 2013 Quarterly Activities Report

CORPORATE

During the quarter the Company achieved an important milestone by securing a €20 million Reser-

ve Based Lending (RBL) facility with the London branch of Nedbank Group Limited, one of the four

largest banking groups in South Africa. The new five year term RBL facility with initial borrowings

at € 5 million replaces the Company's previous facility with Lloyds Bank, and its drawn balance of

€ 4 million has been repaid in full. The new Nedbank facility will allow Po Valley to fund the next

stage of the Company's growth opportunities and gas developments.

At the end of June 2013 the Company finalised a new off-take gas agreement with Shell Italia

S.p.A, part of the global group Royal Dutch Shell. The contract is benchmarked to gas prices in

Italy and commenced on 1 July 2013.

In the June quarter the Company generated revenues of € 1.3 million (A$ 1.8 million). Cash at

bank at the end of the quarter amounted to € 2.4 million (A$ 3.4 m).

Revenue for the first half of 2013 amounted to € 3.0 million (A$ 4.1 million). The full financial report

for 2013 half year accounts is currently under preparation and will be released in August.

Market Capitalisation (at A$0.10) A$ 12.2m (€9.9m)

Cash at Bank (June 13) A$ 3.4m (€2.4m)

Drawn Debt A$ 7.1m (€5.0m)

Enterprise Value A$ 15.9m (€12.5m)

Substantial

Shareholders

Shares (‘m) as at

30 June 2013 %

Michael Masterman 32.8 26.8%

Hunter Hall 21.3 17.4%

Beronia Investments 7.1 5.8%

Other 61.2 50.0%

TOTAL SHARES 122.4 100%

Share price chart: June 2012 — June 2013 AUD

Competent Person’s Statement

Information in this report that relates to Hydrocarbon Reserves and or Resources is based on information compiled by Mr Giovanni Catalano, MD & CEO of Po Valley Energy who has consented to the inclusion of this information in the form and context in which it appears. Mr Catalano has over 32 years experience in Exploration and Development in the Oil and Gas Industry. He is member of SEAPEX and AAPG and holds a masters degree in Geology from the University of Ferrara.

CONTACTS

Or visit: www.povalley.com

REGISTERED OFFICE

Level 28, 140 St George's Terrace, Perth WA 6000

TEL +61 8 9278 2533

FAX +61 8 9278 2525

Via Ludovisi, 16 Rome Italy 00187

TEL +39 06 4201 4968

FAX +39 06 4890 5824

ROME OFFICE

$0.00

$0.10

$0.20

$0.30

Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13

For

per

sona

l use

onl

y