Coro Energy : Annual Report 2020

Focused on growth markets

South East Asia includes some of the fastest growing economies globally

Electricity demand forecast to increase 152% by 2050

  Read more in Our Markets on pages 6 to 7

Duyung PSC

A strong gas asset acting as a platform for regional growth

(15% interest with gross discovered 2C resource of 495 Bcf and attractive commercial metrics at low commodity prices)

  Read more in

Operational Review

on page 10

Recently revised strategy, including renewables and energy storage

Increased demand will require significant investment in renewables

Increase in demand for battery storage also to support grid imbalances and renewables growth

  Read more in Our Strategy on page 5

Building a clean energy portfolio

Post year-end, acquired Global Energy Partnership Ltd, building on ion Ventures investment made in November 2020

  Read more in

Operational Review

on pages 8 to 9

Coro Energy PLC

www.coroenergyplc.com

HIGHLIGHTS

SOUTH EAST ASIA

• Announced resource upgrade

for Mako gas field, Duyung PSC - 79% increase in 2C resources to 495 Bcf (gross)

• Increased Mako resource estimates accepted by Indonesian regulator; updated Plan of Development being prepared

• Acquired 20.3% interest in ion Ventures, including a right of first refusal to invest directly in ion's South East Asian projects

CORPORATE

• Implemented significant cost-saving measures in response to COVID-19 pandemic and challenging market conditions

• Continued to explore divestment options for non-core Italian portfolio after previous agreement lapsed

POST-BALANCE

SHEET EVENTS

• Acquired a portfolio of early stage operated renewable energy projects in South East Asia through the acquisition of Global Energy Partnership Ltd

• Raised net proceeds of £3.9m through share placing and open offer with new and existing investors

• Strengthened Board and Executive team with appointment of CEO with highly relevant experience and regional knowledge

STRATEGIC REPORT

CONTENTS

  Read more online at coroenergyplc.com

The Company is positioned for an exciting 2021, with a broad opportunity set of clean energy investment and a high-quality gas asset."

MARK HOOD

Chief Executive Officer

02

The beginning of 2020 will go down as one of the most challenging periods for junior exploration and production companies, with the COVID-19 pandemic and other factors causing a significant

and rapid fall in oil prices and a resulting deterioration in investor sentiment. In response, the Board acted quickly and decisively to reduce overheads and preserve cash, including reducing executive staffing, with Andrew Dennan stepping aside as the Company's CFO but remaining as a Non-Executive Director and the Company's former CEO leaving the Company. This action led to a material $2.2m reduction in operating cash outflows compared to the prior year.

Despite this challenging backdrop, 2020 was an important transition year for the Company. We were pleased to report a significant resource upgrade for our foundation gas asset, the Duyung PSC, alongside the launch of our new, low carbon energy strategy and the first strategic investment in ion Ventures Holdings Ltd ("ion Ventures"), a South East Asia and UK focused developer. We continued the momentum post year-end, with the acquisition of Global Energy Partnership Ltd ("GEPL"), alongside a strategic fundraise. This latest acquisition delivered both a portfolio of operated renewable energy projects across South East Asia and

1. renewables-experiencedChief Executive Officer.

After this period of transition, the Company is now positioned for an exciting 2021, with a broad opportunity set of clean energy investments and an underpinning high-quality gas asset.

DUYUNG PSC - SIGNIFICANT RESOURCE UPGRADE

The Company's 15% interest in the Duyung PSC (operated by Conrad Petroleum Ltd), which contains

the Mako gas field, remains a key pillar within our portfolio, with gas set to play a major role in the energy transition as a lower-carbon alternative to coal and benefiting from a strong regional market. Following the successful appraisal drilling campaign undertaken in Q4 2019, Gaffney Cline & Associates ("GCA") were engaged by the PSC operator to prepare an updated resource audit. This audit was completed in May 2020, with GCA confirming a significant increase in 2C resources (gross, full field) to 495 Bcf compared

to their previous estimate of

276 Bcf. This demonstrates the significant potential scale of the Mako gas field, with further upside potential contained in the certified 817 Bcf of 3C resources, a 108% increase on the previous 3C estimate of 392 Bcf. The operator's focus has now turned to the commercial milestones including submission of an updated Plan of Development and signature of a gas sales agreement. Achievement of these milestones will be key to upgrading contingent resources to reserves, and ultimately to enabling the partners to take a Final Investment Decision ("FID").

BUILDING A CLEAN ENERGY PORTFOLIO - ION VENTURES INVESTMENT

In September 2020, we announced a revised South East Asian strategy to include a specific focus on renewable energy assets and related technologies, including battery storage. Shortly after, in November 2020, we completed the acquisition of a 20.3% shareholding in ion Ventures, a developer of flexible energy assets including battery storage, with a pipeline of opportunities across South East Asia and a mature UK portfolio. This deal accelerated our evolution into a low-carbon energy company and aligned us with a team of clean energy experts with the same regional focus. Another key

Coro Energy PLC

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STRATEGIC REPORT

component of the deal was the acquisition of a right of first refusal to invest in ion's pipeline of South East Asian projects, and our rigorous screening of these opportunities continues.

CONTINUING THE MOMENTUM - GEPL ACQUISITION AND STRATEGIC FUNDRAISE

After year-end, in March 2021, we completed the acquisition of GEPL, an originator and developer of renewable energy projects in South East Asia. This represents an important next step in our strategic objective of building a regionally focused, low-carbon energy company. With this acquisition, we secured a pipeline of operated renewable energy projects across the region, with an initial focus on the Philippines. We also welcomed Mark Hood, co-founder of GEPL, to the Board of Directors, with Mark to serve as the Company's CEO, thus securing an experienced clean energy executive to lead the Company through the next stage of its strategic journey. Mark also has oil and gas industry experience, which will support Coro's continuing work on Duyung. The GEPL acquisition also complements our ion Ventures investment, with potential opportunities for co-development in South East Asia in future.

Alongside the GEPL deal, we successfully raised net proceeds of £3.9m ($5.3m at year-end exchange rates) through a share placing and open offer with new and existing investors. These funds come at a critical time for the Company, and will enable us to continue to fund our share of Duyung costs through to FID, as well as investing in our pipeline of renewable energy projects in the region. The fundraise also provides the Group with sufficient working capital runway to achieve its near term corporate goals including evolving its capital structure ahead

of the Eurobond redemption date in April 2022.

DISPOSAL OF ITALIAN PORTFOLIO

Divestment of our non-core Italian portfolio remains a priority for the Board, and we remain in discussions with multiple parties regarding sale of the portfolio. The Board is confident a disposal can be successfully concluded.

OUTLOOK

Coro not only managed to successfully weather the storm in 2020, we progressed to an inflection point in our transition to becoming a regionally focused, low-carbon energy company. We have an exciting, blended portfolio of energy assets, with our operated renewable energy portfolio sitting alongside our investments in the non-operated Duyung PSC and ion Ventures. Having raised new capital early in 2021, and with a strengthened Executive team, we are excited about the potential to add value for shareholders in the next 12 months and beyond.

We wish all shareholders a safe and prosperous 2021.

JAMES PARSONS

Non-Executive Chairman

MARK HOOD

Chief Executive Officer