Empire Energy : Renounceable Rights Issue shortfall

EMPIRE ENERGY GROUP LIMITED

Level 7, 151 Macquarie Street

Sydney NSW 2000

T: 02 9251 1846

F: 02 9251 0244

(ASX: EEG) (OTCQX: EEGNY)

31 January 2017

UNDERWRITTEN RENOUNCEABLE RIGHTS ISSUE SHORTFALL NOTIFICATION

On 14 December 2016 the Company announced a 11 for 5 pro-rata renounceable rights issue ('Offer') at an issue price of $0.008 per new share ('New Shares') to raise approximately $6.1 million before costs.

The Offer closed on the 27 January 2017.

The Offer included a Top-Up Facility whereby Eligible Shareholders are entitled to apply for additional New Shares in excess of their Entitlement, at the same price as New Shares under the Offer.

The Company advises that it has received applications for 236,538,079 New Shares amounting to

$1,892,305.

New Shares are comprised of the following:

New Shares
Shares taken up by Eligible Shareholders entitled to New Shares under the Offer on a 11 for 5 basis	208,813,175
New Shares applied for by Eligible Shareholders under the Top-Up Facility	27,724,904
Total New Shares	236,538,079

Allotment of the New Shares will occur on 3 February 2017.

Subject to clearance of funds in respect of the above applications the shortfall is 527,553,373 shares amounting to $4,220,427.

The Offer was fully underwritten by 153 Fish Capital Pte Ltd. The underwriters will place the shortfall with a number of institutional and sophisticated investors.

Regards

Rachel Ryan Company Secretary