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American Patriot Oil and Gas Limited INVESTOR PRESENTATION

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1 American Patriot Oil and Gas Limited INVESTOR PRESENTATION
Initial public offering – April 2014

2 Disclaimer Extent of Information Exclusion of Financial Product Advice
This document has been prepared by American Patriot Oil and Gas Corporation Limited (“American Patriot Oil and Gas” or “Company”). This Presentation, including the information contained in this disclaimer, does not constitute an offer, invitation or recommendation to subscribe for or purchase any security and neither the Presentation, disclaimer not anything contained in such forms the basis of any contract or commitment. This Presentation does not take into account your individual investment objective, financial situation or particular needs. You must not act on the basis of any other matter contained in this Presentation but must make your own assessment of the Company. No representation, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information contained in this Presentation, including the accuracy, likelihood of the achievement or reasonableness of any forecast, prospects, returns or statements in relation to future matters contained in the Presentation (“Forward-looking statements”). Any such forward-looking statements that are contained in this Presentation or can be implied by the same are by their nature subject to significant uncertainties and contingencies associated with the oil and gas industry and are based on a number of estimates and assumptions that are subject to change ( and in many cases are outside the control of American Patriot Oil and Gas and its directors) which may causes the actual results or performance of American Patriot Oil and Gas to be materially different from any future results or performance expressed or implied by such forward-looking statements. To the maximum extent permitted by law, none of American Patriot Oil and Gas’s, or related corporations, directors, employees, agents nor any other person accepts and liability, including without limitation arising from fault or negligence, for any loss arising from use of this Presentation or its content or otherwise arising in connection with it. Exclusion of Financial Product Advice This Presentation is for information purposes only and is not a prospectus or other offering under Australian law or under any others laws in the jurisdictions where the Presentation might be available. Nothing herein constitutes investment, legal, tax or other advice. This Presentation is not a recommendation to acquire shares and has been prepared without taking into account the investment objectives, financial situation or needs of individuals. Independent Advice You should consider the appropriateness of the information having regard to your own objectives, financial situation and needs and seek appropriate advice, including, legal and taxation advice appropriate to your jurisdiction. American Patriot Oil and Gas is not licensed to provide financial advice in respect of its shares.

3 Investment highlights – American Patriot Oil and Gas
Early mover in emerging tight oil basins/ proven hydrocarbon province nearby historical producing fields Large and growing acreage 25,210 net acres held at high retained interest on shore USA – Rocky Mountain basins Strong JV partner – Treasure Exploration, (operator) and free carry on 2 horizontal wells + option for two more wells on Northern Star project. Significant oil resource potential of 667mbbl 3P reserves & 3940mbbl 2C contingent resources. Focus on tight oil unconventional resource with conventional oil targets – near term cashflow potential. Strong technical and commercial team. Proximity to infrastructure.

4 CONTENTS The Business APOG’s Projects Offer Details APPENDIX
Board and Management Bio’s Work program Contact Information

5 Investment highlights
THE BUSINESS Investment highlights

6 1.1 Unconventional oil and gas in USA
Rapid evolution facilitated by: US unconventional oil and gas plays have revolutionised the world energy markets in recent years Targeting oil and gas in low permeability rocks through horizontal drilling and fracture stimulation Different plays have emerged over recent years, originally in gas basins in Texas and then in oilier plays such as the Bakken and EagleFord Investors in ASX companies with exposure to shale/tight oil have reaped strong returns from these plays, which have attractive risk and return characteristics – AUT the standout following bid from Canadian E&P Baytex Energy

7 1.1 Unconventional oil and gas in USA
Source: Company Reports, US Department of Energy, Energy Information Administration. Source: IRESS

8 1.2 Acreage value – Well established value path
There is a well established value realization path in the US for shale/tight oil resource plays: Stage Details Acreage Values (Estimated) Stage 1 Acreage leasing in new play areas/few wells drilled US$20-$500/acre Stage 2 Early stage drilling, early IP rates US$500-$1000/acre Stage 3 Proof of concept, further drilling and optimise drilling & completions US$1000-5,000/acre Stage 4 100’s of wells drilled and firm understanding of Type curve US$5,000-15,000/acre Stage 5 Development model established in mature play area/M&A activity increased US$15,000-45,000/acre APOG Acreage

9 1.3 Partnering with an experienced operator
Treasure Exploration is JV partner and operator of the Northern Star project Acquired 70% of the Northern Star project with APOG retaining 30% Treasure paid cash and provides free carry on 2 horizontal wells estimated cost of $8m plus an option for 2 more wells First well expected in late 2014 with the second well six months later Treasure is a subsidiary of an established Denver based private Independent E&P focused on Rocky Mountains region with significant drilling experience in tight oil plays Track record of finding resource style tight oil plays as early entrant, developing and successfully monetising assets

10 1.4 Business model Farm Out
Early entry into onshore US tight oil resource plays, in areas with excellent infrastructure, ability to quickly enter production, generate positive cash flow and expand play areas Internally generate prospects using geological knowledge, capture significant land positions at a low cost Partner with experienced Operator to reduce risk capital exposure via a farm out in a cash and carry deal Monetise assets as play areas mature and seek value accretive acquisition opportunities to complement organic growth Proven track record in executing this business model with JV executed with Treasure Exploration Farm Out

11 1.5 Shale/Tight oil game changers
Drilling techniques have advanced significantly with horizontal wells extending up to 2.5km lateral. Costs and effectiveness of multi-stage fracturing have improved considerably in the last 10 years - Multi-stage fracturing can now be done in a few days as opposed to weeks. Microseismic has improved the effectiveness of monitoring the fracturing process. Technology and techniques used together mean commercial flow rates can be obtained from shale reservoirs at reasonable costs. Minimal geological risk present; more of an engineering feat. Production from unconventional resources projected to account for a majority of the supply of gas in the US. Demonstrated the viability and allowed the commercialisation of shale oil and gas production.


13 2.1 The assets Early entry in low cost acreage in conventional/tight oil plays in proven oil fields

14 2.1 The assets Significant 56,505 gross acres (25,210 net acres) onshore USA/High Retained working interest on shore USA Rocky Mountain basins across 5 key projects: Northern Star 30% WI in 36,713 gross acres (9,233 net) in Montana. JV with Treasure Exploration Panther 100% WI in 8,790 gross acres in Montana Rough House 90% WI in 6,633 gross acres in DJ Basin Colorado Southern Sun 100% WI in 3,728 gross acres in Utah Overthrust 100% WI in 640 gross acres in Wyoming Early entry in low cost acreage in conventional/tight oil plays in proven oil fields

15 2.2 Large and growing acreage – on shore USA
5 projects all in proven hydrocarbon basins in proximity to proven oil fields. A targeted process of early entry in underexplored but highly prospective acreage in basins in Colorado, Montana, Wyoming and Utah, USA Farm out completed with Treasure Exploration on Northern Star – free carry 2 wells + 2 optional Project Location WI NRI Date Acquired Term Description Acres (net) Operator Northern Star (1) Montana, USA 30% ~24% *5 years Tight Oil 9,233 Treasure Exploration Panther Project 100% ~80% 2012 5 years 8,490 American Patriot Southern Sun Utah, USA 3,474 Overthrust Wyoming , USA 2013 Deep Oil 640 Rough House (2) Colorado , USA 90% ~75% 2014 3,373 Total 25,210 1. One lease in the Northern Star Project (2958 net acres) was issued with an 18 month lease with a 42 month extension with the extension dependent on a commitment to drill a 5000’ vertical well. The well commitment responsibility was absorbed by Treasure Exploration upon designation of Treasure Exploration as operator and the assignment of a 70% working interest in the Northern Star Project . 2. Acquisition to be completed after IPO. Early entry in low cost acreage in conventional/tight oil plays in proven oil fields

16 2.3 Significant reserve and resource potential
Significant reserve and resource potential focussed on higher margin oil vs gas. 3P reserves 667mbbl and 3940mbbl oil resource potential associated with the Northern star project net to APOG as reviewed by MHA. Primary targets are the Ratcliffe and Mission Canyon Formations with both formations currently producing from fields adjacent to the American Patriot acreage. The Lustre field has produced 7mmbbl oil from 41 wells from the same formations and lies within the Northern Star project area. APOG looking to target these proven reserves to establish early production and cash flow for the business. American Patriot Net Oil Reserves and Resources attributable to Northern Star project* Project 1P Proved Reserves (mbbl) 2P Probable Reserve 3P Proved+Probable+Possible Reserve 2C Contingent Resources Prospective Resources Charles ‘C’ Formation 178 299 504 1389 381 Mission Canyon Formation 37 109 163 1451 719 Total 215 408 667 2840 1100 *Post farm out to Treasure, No reserve or resource potential with Southern Sun, Panther , Rough House or Overthrust project at this stage. mbbl: thousand barrels of oil. Source: MHA Petroleum Consultants LLC Feb 14

17 2.4 Northern Star Project - Montana
30% Working interest covering 36,714 gross acres (9,233 net APOG) located in the Western extent of the Williston basin, Valley County Montana. Treasure Exploration is JV partner/Operator with 70% (farm down in Nov 2013) with APOG free carry on 2 horizontal exploration wells worth ≈$8m drilling late 2014/early 2015 plus options for 2 more wells. Looking to acquire additional acreage in the region Located in a proven oil producing basin and recent nearby exploration success – Lustre Oil Field lies in project area and produced over 7mmbbl oil from Charles ‘C’ , Mission Canyon zone. 3P reserves of 667mbbl and resource potential of 3940mbbl. Lower permeability rocks – Mississippi Lime analogue mean horizontal drilling and modern completion can be used to target significant resource potential Source : APOG Key details on wells drilled nearby: Well Proximity Status Vess Oil Corp Federal 1-5H 90 miles Horizontal Charles C – 400BOPD IP Source : APOG Key area of focus with two wells planned (APOG Free carried) in the next 18 months

18 2.5 Rough House Project - Colorado
Agreement to acquire a 90% Working interest covering 6,633 gross acres (3,372 net APOG)1 located in the DJ Basin in Washington & Arapahoe Counties, Colorado Conventional oil play focussed on stacked pays with multiple carbonate reservoir targets located on the flanks of an oil rich basin on a clearly defined structural nose Large position near historical discoveries and close proximity to two recent oil producing discoveries – Nighthawk Energy well produced 100kbbl in last 12mths, Conoco Phillips and Southwest Energy wells –quick paybacks. Vertical drilling opportunity (≈8000ft) with large upside potential and potential horizontal oil play. Exploration: 3D seismic followed by one well by early Well costs $1.5m (APOG look to farm down) Source : APOG Key details on wells drilled nearby: Well Proximity Status 3-1H Tebo Conoco Phillips 20 miles IP Rate 1087 bbl oil, mcf/gas Staner 5-8H Southwest Energy 3 miles IP Rate 146 bbl oil, 59 mcf/gas Source : APOG, Company announcements 1: Acquisition contingent on completion of IPO Rough House represents a conventional oil play with recent nearby success

19 2.6 Panther Project - Montana
100% Working interest covering 8,790 gross acres (8,490 net APOG) located in Garfield County, Central Montana Project located on the flanks of the oil rich Williston basin on a structural nose. Conventional oil play focussed on stacked pay with multiple targets at ft in carbonate reservoir targeting Duperow formation and other stacked pay zones Vertical drilling opportunity with upside potential as an unconventional tight reservoir horizontal play. Vertical well costs are $1.2m Low cost of entry and close to producers/infrastructure Exploration: Acquisition/processing Seismic and farm down for free carry on well Source : APOG Significant acreage position with staked pay held at high retained interest

20 2.7 Southern Sun - Utah 100% Working interest covering 3,728 gross acres (3,474 net APOG) in the Paradox Basin in San Juan county, Utah Conventional and unconventional potential, targeting shales (Gothic) and carbonate reservoirs at 5500ft depth Vertical drilling opportunities with potential to turn to horizontal oil plays, close to producers/ infrastructure. Significant near term conventional production potential from the Tin Cup Mesa field covering 480 acres. Opportunity to expand this acreage position. Acreage surrounded by Anadarko, Kimmeridge Energy and Hawkwood Energy. Anadarko permitted 5 and drilled 2 horizontal wells – close to APOG Exploration: Seismic, acquire more acreage and farm down for free carry on well Source : APOG Key details on wells drilled nearby: Well Operator Details Long Point State H Anadarko Drilled – data confidential Lewis Road Fee H Cedar Point Fee H Source : Company announcements Early entrant into an emerging play and looking to farm down for free carry

21 2.8 Geology – Northern Sun Northern Star Project Target Zone
Two main targets are carbonate reservoirs of the Mississippian Madison Group Project located on the western Extent of the Williston basin, an 80,000 square mile intercratonic basin which covers North & South Dakota and Montana in USA. Charles ‘C’ limestone or “Ratcliffe formation” reservoirs. Mission Canyon limestone reservoirs also have significant potential. Reservoir targets exhibit low permeability and porosity such that traditional completion methods were not economic. However, with the tested high oil saturations present, and utilizing modern drilling and completion methods, such as horizontal drilling and multi-staged frac’ing we expect to make these zones economic and prolific. Mississippi Lime analogue in terms of oil shows, porosity and tightness Horizontal drilling and hydraulic fracturing can be used to target significant resource potential Target Zone

22 2.9 Northern Star Stratigraphic column

23 2.10 Catalysts next 12 months Catalyst Indicative Timing
First horizontal well with Treasure Exploration on Northern Star project End 2014 Rough House project farm down June - Dec 2014 Panther project farm down/well Southern Sun seismic/lease acquisition June-Dec 2014 Rough House project well Second horizontal well with Treasure Exploration on Northern Star project June 2015 Southern Sun farm down/well The timing is subject to regulatory approvals , equipment and services availability and weather conditions.

24 3.0 Offer details American Patriot will raise circa $8-12m via the issue of m shares at $0.20 per share. Post raising shares on issue of 163.3m,Pro-forma market cap of $32.6m (at $0.20 per share, assuming maximum subscription) Proceeds from the raising to be used to fund the Rough Head project acquisition, drilling and seismic costs, new acreage opportunities and general working capital expenses Loyalty option issue of 1 option for every 2 ordinary shares held at the Record date. 72% of pre IPO stock subject to 24month escrow

25 Capital Structure Post Offer
Shares Minimum Subscription % Max Subscription Existing Shares  103,311,290 72% 63% Shares to be issued 40,000,000 28% 60,000,000 37 % Total Shares following completion of the Offer  143,311,290 100% 163,311,290 Market capitalisation at the Offer Price  $28,662,258 $32,662,258 Source: American Patriot Oil and Gas Prospectus

26 3.2 Proposed use of funds Proposed Use of Funds Application
$8,000,000 Min Subscription  $12,000,000 Max  Subscription  Acquisition of Rough House Project $1,192,563 Rough House Seismic acquisition and reprocessing $1,111,111 $2,777,778 Rough House Drilling Commitment $1,666,667 Proposed Lease Leasehold Acquisition $444,4444 $1,777,778 Proposed Seismic acquisition and reprocessing $0 $553,333 Working Capital $2,770,626 $2,963,742 Costs of the Offer $814,589 $1,066,140 Total $8,000,000 Source: American Patriot Oil and Gas Prospectus

27 3.3 Indicative timetable Event Date Prospectus Lodged with ASIC
24 March 2014 Expected expiry of exposure period 31 March 2014 Opening date 1 April 2014 Closing Date 5.00pm (Sydney time) on 28 April 2014 Allotment of shares 1 May 2014 Despatch of holding statement 6 May 2014 Expected date of trading on ASX 12 May 2014 Note: The timetable is indicative only and subject to change


29 Work programme next 24 months*
Activity 2014 2015 Quarter Ending JAN-MAR APR-JUN JUL-SEP OCT-DEC Northern Star Project Leasing 3D Seismic Wells Drilled (2 horizontal wells Treasure free carry)  1   1 Panther Project Wells Drilled (vertical well)**        Southern Sun Wells Drilled (horizontal well)** 1 Rough house Project Complete Rough House project acquisition Wells Drilled Overthrust Project Wells Drilled** Total Wells Drilled 3 * Work programme fully funded by proceeds from IPO **APOG to seek free carry on wells The timing is subject to regulatory approvals , equipment and services availability and weather conditions.

30 Board and management team
Alexis Clark / Chief Executive Officer and Managing Director Previously an Oil & Gas Analyst at Patersons Securities responsible for coverage of small-mid capitalisation Oil & Gas companies also Energy Analyst at Merrill Lynch. Over 10 years experience in Institutional banking and finance for Energy & Resources companies. Chartered Financial Analyst (CFA), Chartered Accountant (ACA) Bachelor of Economics & Commerce at the University of Adelaide. Robert Hoar / Chief Geologist Exploration geoscientist with 30 years of oil and gas industry experience. throughout the world including many US basins.   Worked for a number of well-known companies including Amoco, where he spent half his career, Oryx, and Ker McGee.      Worked in many phases of geophysics including 3D acquisition and interpretation, and VSP acquisition and interpretation. BA in geology from Hamilton College and a MSc in Geology from the University of Vermont. Justin Dunn / Landman 2nd generation landman Degree in Business Administration from Goucher College Previously worked as Landman for Hunter Energy

31 Board and management team
David Shaw / Non Executive Chairman Practising solicitor with his own firm Campbell & Shaw Lawyers. Chairman of Ambassador Oil & Gas Ltd and Director on a number of private company boards and advisory boards. Previous Essendon club President from 1992 to 2002 and former Commissioner of the AFL. Jim Angelopoulos / Non Executive Director & Chief Operations Officer Monash University Engineering Graduate and career as a director of a number of successful businesses in Australia. Currently the Managing Director of one Fuseco Ltd. Experienced Energy Company Investor and a Director of a Joint Venture gas & oil enterprise in Kentucky USA. Founding director of APOG. Frank Pirera / Non Executive Director & Chief Financial Officer More than 30 years experience in public practice. Graduate of Monash University -Bachelor of Business (Accounting) and is a fellow of the Certified Practising Accountants (CPA). Wealth of experience in financial control and management and strategic planning having advised numerous public and private companies throughout his career.



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