Calima Energy : 2 January 2019 – Montney Operations Update

Market Announcements Platform ASX Limited

ASX Code: CE1

Exchange Centre 20 Bridge Street Sydney NSW 2000

January 2, 2019

Montney Operations Update

Highlights:

• • Arrival of the Precision Drilling PD 379 rig at the Calima drilling pad.

Calima Energy Limited (ASX:CE1) ("Calima" or the "Company") is pleased to announce that the Precision Drilling PD 379 rig has arrived on location and the Company is currently preparing the drill site for the spud of the first well in a three well programme to test the prospectivity of the Montney Formation in the Company's 72,000 acre lease holdings in British Columbia. An announcement to confirm commencement of drilling operations in this first well will follow in due course.

Alan Stein, Calima's Managing Director commented:

"The rig is now on location and the operation remains on schedule. The team in Canada continue to do an outstanding job and we look forward to providing further updates as we progress through the drilling sequence."

Figure 1 - Rig up of PD 379 and the Calima drill camp

For further information visitwww.calimaenergy.com or contact

Alan Stein	Jonathan Taylor	Glenn Whiddon
Managing Director	Technical Director	Chairman
E:[e-mail]	E:[e-mail]	E:[e-mail]
T: [phone]	T+ 44 77391 77805	T: [phone]
David Tasker
Chapter One Advisors
E:[e-mail]
T: [phone]

About Calima Energy

Calima Energy Limited (ASX:CE1) is an international oil and gas company with over 72,000 acres of drilling rights prospective for the Montney Formation in British Columbia, the most active oil and gas play in Canada.

The Company is preparing to drill several wells close to existing infrastructure, including pipelines and processing facilities.

Calima's neighbours in the Montney include international operators Shell, ConocoPhillips and Petronas Canada, as well as Canadian producers Black Swan Energy, Saguaro Resources and Painted Pony Energy. The region's liquids-rich hydrocarbon reserves are being targeted for LNG export alongside domestic and international oil market opportunities.