WHL Energy : Seychelles Update

ASX Announcement template WHL Energy Ltd

ABN: 25 113 326 524

Level 2, 22 Delhi Street West Perth, WA 6005

P.O. Box 1042, West Perth Western Australia 6872

T: [phone]

F: [phone]

www.whlenergy.com

ASX/MEDIA RELEASE 14 JANUARY 2016

SEYCHELLES UPDATE

Australian energy company WHL Energy Limited (ASX: WHN) ("WHL Energy" or "the Company") refers to the farm-out agreement between Ophir Seychelles (Areas 1, 2 and 3) Limited ("Ophir"), PetroQuest International Incorporated and WHL Energy Limited dated 4 March 2014 ("FOA"). In accordance with the provisions of the FOA, Ophir has elected to exercise its exit option thereunder.

In reference to the Deed of Novation, Amendment and Restatement Agreement dated 14 April 2014 between the Government of the Republic of Seychelles (the "Government"), PetroSeychelles Limited ("PetroSeychelles"), Petroquest International Incorporated ("PQI") and Ophir (the "Petroleum Agreement") relating to Blocks 5B/1, 5B/2 and 5B/3 (the "Blocks"), Ophir, in accordance with the terms of the Petroleum Agreement, has elected to exercise its exit option thereunder.

Under the terms of the Petroleum Agreement, the Blocks revert back to the Seychelles Government. PetroSeychelles have formally notified PQI that the Petroleum Agreement dated 14 April 2014 relating to Blocks 5B/1, 5B/2 and 5B/3 is terminated.

WHL Energy Limited is currently in discussions with the Seychelles Government to continue its participation in the Blocks and will update the market in due course of the outcome of these discussions.

Ends

FURTHER INFORMATION T: [phone]

E: [e-mail]

About WHL Energy Limited

ASX-listed WHL Energy Ltd (ASX: WHN) is an oil and gas exploration Company focussed on East Africa and Australia.

WHL Energy also holds 100% equity in Exploration Permit VIC/P67 in the offshore Otway Basin, approximately 200 km WSW of Melbourne off the Victorian coastline. VIC/P67 contains the undeveloped La Bella gas field in proximity to the Victorian gas market, and several nearby exploration prospects. The La Bella 3D seismic survey was acquired in late 2013 to appraise the La Bella field and also firm up the exploration prospects. Initial results of the 3D seismic survey are encouraging and have identified structurally conformable amplitude anomalies associated with several of the key prospects.