Investor Presentation - Pandora LNG Development Pathway ASX:CMT

9th July 2014

www.cottoilandgas.com.au

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Certain statements or estimates contained in this presentation, including information as to the future financial or operating performance of Cott Oil & Gas Ltd (Cott) and its projects, are forward-looking statements or estimates. Such forward looking statements or estimates are necessarily based upon a number of assumptions and estimates that, while considered reasonable by Cott, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements; and may include, among other things, statements regarding targets, estimates and assumptions in respect of production, prices, operating costs, results, capital expenditures, reserves, resources and anticipated flow rates, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. Cott disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements or estimates made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements and estimates are not guarantees of future performance and accordingly investors are cautioned not to rely on forward-looking statements or estimates due to the inherent uncertainty therein. This presentation is not an offer of securities and is not a disclosure document.

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PNG focused oil & gas explorer and project developer with 4 licenses and 1 gas discovery

Flagship asset is the Pandora Gas Field (CMT:40%) an offshore gas discovery with 2C 800BCF with exploration upside

Previous license holders suggest Pandora could contain up to 1.3 Tcf gas in place

Recently developed Concept Study by FLNG developer Wison Offshore and Marine demonstrates Pandora is technically and commercially viable

PNG is a growing LNG hub for Asia – Cott’s licenses offer excellent exposure to this market

Development of Pandora LNG project now advancing

Several vessel owners and infrastructure partners have expressed strong interest in Build Own Operate – tolling model for gas owners

Also holds net 9,617km2 of highly prospective onshore licenses in PNG’s Western Province

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ASX Code: CMT Issued Capital: Ordinary Shares 77.0m Options ($0.20, Dec 2015) 22.8m Options ($0.25, Dec 2015) 4.4m Options ($0.30, Dec 2015) 4.4m Market Capitalisation: ($0.13/share as at 6 June 2014) $10.1m Cash (31 March 2013): $2.7m 10m Shares in Kina Petroleum Ltd (KPL): $4.0m Debt: Nil Major Shareholders: 12.9% International Exploration Services Ltd 8.7% Michael O’Keeffe (ex-Riversdale Mining Chairman/

founder) 19.9% Cott Management/ Founders (escrowed until Jan

2015)

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Directors: Mr Stephen Dennis - Chairman Mr Andrew Dimsey - Managing Director Mr David Bradley - Non Executive Director Company Secretary: Ms Sarah Smith Management: Mr Marc Jamet – Technical Manager Mr Alistair Jobling – Commercial Manager Chief PNG Advisor: Mr Simon Korua Head Office: 945 Wellington Street West Perth WA Australia 6005 www.cottoilandgas.com.au

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License (Area) % Operator Target Resource Location Comment

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Exploration Assets

PPL 437 (1,104km2) 20% Kina Petroleum Multi Tcf/MMbbls

Onshore Western Province, PNG

Prospective for Wet Gas Seismic acquired 2H 14

PPL 435 (5,670 km2) 50% Kina Petroleum Multi Tcf/MMbbls Large acreage provides development and

commercial opportunities PPL 436 (13,122km2) 50% Kina Petroleum Multi Tcf/MMbbls

Joint Study Area 25% Transform Exploration Multi Tcf/MMbbls Onshore West

Papua, Indonesia PSC currently under

application

Development Assets

PRL 38 (Pandora) 40% Talisman Energy 2C 800BCF + Offshore Gulf of Papua, PNG

Proposed FLNG or Near Shore LNG Project

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Joint Venture: Cott 40% Talisman 25% (Operator) Kina 25% Santos 10%

Pandora Gas Fields located in Gulf of Papua midway between Port Moresby and Daru in 120m of water at approx 1,400m TVD

Carbonate reef structure with excellent porosity and deliverability

Pandora 1X drilled in 1988 over A Structure discovering a 298m gas column which was tested at 57 mmscfpd

Pandora B1X drilled in 1992 over B Structure discovering a 110m gas column which was tested at 43 mmscfpd

Several other prospects have been identified within the licence by 3D seismic

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Discovered by IPC in 1988 with follow-up well drilled in 1992

Previous license (PRL1) expired in February 2013 and was re-gazetted as PRL 38

Previous joint venture acquired 515 km2 of 3D seismic over permit to define a 2C Contingent Resource of 792 BCF 1 and focussed on bringing gas onshore for aggregation

Extensive evaluation included production and pipeline studies, field development plan, sulphur management and metocean studies

Joint Venture concluded that onshore development was not economic based on cost estimates received

Growing awareness that many gas fields will not be developed other than with FLNG is driving technological development and reducing costs making FLNG far more commercially and technically viable

1 Oil Search Ltd - 2013 Annual Report

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Cott engaged Wison Offshore & Marine to undertake Concept Study for Pandora Gas Field

Option 1 – Offshore FLNG

3 well development with subsea completions

1 mtpa vessel with 170,000m3 storage

Onboard gas treatment and re-injection of sour gas

Estimated Capex US$900m – US$1,100m (US$900 – US$1,100/ tpa)

Option 2 – Near Shore LNG

Field Production via a Buoyant Tower for processing and sour gas reinjection

160km clean gas pipeline to near shore location

170,000m3 storage barge with 1 mtpa liquefaction capacity

Estimated Capex incl pipeline and tower - US$1,300m - US$1,400m

Funding likely to come from vessel and infrastructure owners – tolling model

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FLNG vessel with 170,000m3 storage

2 x 0.5 mtpa water-cooled liquefaction trains (Black & Veatch PRICO™)

External turret mooring Side-by-side or turret

offloading to be determined (subject to review of metocean conditions)

Onboard gas treatment (amine tower, mercury bed) and reinjection of sour gas stream into reservoir

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Dry completions on Buoyant Tower where gas clean-up and sour gas re-injection will take place

Clean gas pipeline to near-shore location (approx 160km) 170,000m3 storage ‘barge’ jetty/dolphin moored in min 14m depth 1 mtpa liquefaction capacity (expandable up to 2.5 mtpa if to be shared with

onshore gas) Side-by-side offloading

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Offshore Solution

Vessel operational expense (includes manning, maintenance, reagents) of US$1.50 – US$2.00/mmBtu

‘Cost of ownership’ approximately US$2.50 – US$3.20/mmBtu 1

Combined operating cost of US$4 – US$5.20/mmBtu should enable owner/operator to provide toll service at less than US$6/mmBtu

Near Shore Solution

Total operational expense (incl liquefaction vessel, Buoyant Tower and pipeline) of between US$2.00 – US$2.50/mmBtu

Cost of ownership between US$3.50 – US$4.50/mmBtu 1

Combined operating cost of US$5.50 – US$6.50/mmBtu based on 1 mtpa but will be reduced if capacity expanded to include onshore gas

With field development costs and transport costs both at less than $1.00/mmBtu, the Joint Venture should be able to deliver LNG to North Asia for approximately US$8/mmBtu 1 Based on complete amortisation over 10 years at 8% cost of capital

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Several parties with expertise in shipping seeking to Build, Own and Operate (BOO) vessel on behalf of gas owners services on a toll treatment basis (similar to FPSO Model)

Project sponsor, which is likely to be an LNG shipping company, will establish a midstream company to own and operate the vessel and bring in gas suppliers, off-takers, National Oil Co and/or technology providers as shareholders/co-sponsors

Vessel would be funded by equity and debt and therefore requires proponents with strong technical and financial credentials as well as appropriate insurance cover

Liquefaction tariff to be determined to achieve vessel owner’s required return on investment but likely to be around US$4-6/mmBtu depending on scale

Commercially acceptable liquefaction tariff to be determined through open-book analysis of construction, operation and finance costs

Debt funding may be available from Export Credit Agencies, such as World Bank, China EXIM Bank and Australian Export Finance Insurance Corp (EFIC)

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Pandora FLNG has potential to be a high margin LNG project: Acquired as an existing discovery therefore

minimal sunk costs to recover Field development requires max 4 shallow

wells with dry completions H2S can be removed on vessel or floating

platform and re-injected For Near Shore option, cost of pipeline and

tower are offset by lower vessel capex and lower opex

Toll treatment of pipeline quality gas can be delivered for less than US$6/mmBtu

LNG can be transported to key Asian markets for US$1/mmBtu

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Cott has identified the optimum pathway for development of the Pandora Gas Field and, potentially, other gas discoveries. It now looks to develop a working group that includes potential owner-operators, contractors and adjoining licensees

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Talisman and Horizon seeking to aggregate 4 TCF to underpin a 2 mtpa LNG facility

Focus is on PRL4 and PRL 21 to north of province where up to 2 TCF of wet gas has been discovered

Stanley (PDL 10) and PRL 21 to initially be developed as condensate stripping

Horizon proposes to commercialise onshore gas by way of a “potential Near Shore LNG development”1

Approx 1-1.5 TCF dry gas in central WP held by Talisman, Mitsubishi and Santos

1 TCF available from Pandora would accelerate FID for aggregation

Opportunity for Near Shore LNG Hub in western Gulf of Papua

1 Horizon Oil Announcement 2 June 2014

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1,140 km2 permit bordering PRL 21 (Ketu/Elevala/Tingu) where 1.2TCF and 66 mmbl condensate have been discovered to date

Net Prospective Resource: BEST 91 BCFE (15 MMBOE) HIGH 648 BCFE (108 MMBOE)

Close proximity to proposed liquids processing and gas transport infrastructure

Heritage Oil plc farmed into Kina’s interests in 2013

Infill seismic to be acquired in 2H 2014 ahead of exploration well in 2015

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13,122 km2 permit with good liquids potential, access to river and proposed gas export infrastructure

Good seismic correlation with existing aerogravity No wells drilled on Oriomo High Fairway structure

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5,346 km2 licence approximately 50 Km southwest of PRL 21

2 large leads with basal Cretaceous sand potential adjacent to Lake Murray-1 gas flow

Good potential port infrastructure at Aiambak Aerogravity and aeromagnetic survey being acquired

over PPL435 and PPL 436 in Q1 2014

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The following chart shows the value of recent pre-development transactions for PNG gas discoveries compared to the current value of Cott

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World class petroleum region, proven active hydrocarbon systems, close to Asian LNG demand

Attractive fiscal regime with 2% royalty and 30% corporate tax rate

First shipment from 6.9 mtpa PNG LNG project in May 2014

Talisman-Horizon gas aggregation continues with the aim of establishing a mid-scale LNG project in Western Province

Recent Horizon (Osaka Gas) and Talisman (Mitsubishi and Santos) transactions demonstrate commitment to LNG development in Western Province

Continued corporate activity with acquisition of Eaglewood Energy by Transform Exploration

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Stephen Dennis (Non-Executive Chairman) 25 years active involvement in the resources industry. He spent 14 years in senior management roles at MIM Holdings Limited, was Group General Manager and Chief Financial Officer of Minara Resources Limited until late 2005. Mr Dennis is currently the CEO and Managing Director of CBH Resources Limited.

Andrew Dimsey (Managing Director) Co-founder of Cott. 30 years of commercial experience as a senior executive of Beach Petroleum, Alliance Oil, Claremont Petroleum, Elders Resources, Arc Energy, Origin Energy. Focus on all commercial aspects of O&G industry -- mergers and acquisition, corporate restructuring, JV arrangements, operations and production.

David Bradley (Non-Executive Director) Energy industry commercial specialist with 30 years of business development experience including senior management roles with El Paso Corporation, Epic Energy, and consulting roles with Wood McKenzie as well as privately advising a broad range of upstream, midstream and downstream energy players in developing and executing commercialization strategies and business development initiatives. Experience includes significant M&A coordination roles realising over $2 billion in closed transactions.

Board with considerable senior experience with ASX-listed resources companies.

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Traditional LNG transporters and FPSO operators looking to move upstream by developing and leasing FLNG facilities

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