Quarterly Activities Report

ABN69 009 196 810

(Incorporated in Western Australia)

Level 2, 30 Richardson Street

West Perth, WA 6005

PO Box 1786, West Perth WA 6872

T+61 8 9321 9886 F+61 8 9321 8161

30 October 2020

ASX Limited

Company Announcements

Level 4, 20 Bridge Street

SYDNEY NSW 2000

Dear Sir/Madam

RE: QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDING 30 SEPTEMBER 2020

Please find the Quarterly Activities Report for the period ending 30 September 2020 for Prominence Energy NL (ASX: PRM).

Yours faithfully

PROMINENCE ENERGY NL

Anna Mackintosh

Company Secretary

QUARTERLY ACTIVITIES REPORT

FOR THE PERIOD ENDING 30 SEPTEMBER 2020

HIGHLIGHTS

• In July, PRM successfully raised $150,000 before costs via a placement.
• In September the Company raised $1.18 million via an oversubscribed rights issue
• Farm-outdiscussions regarding the drilling of Bowsprit-1 are ongoing
• The Company is reviewing potential new assets

Bowsprit Oil Project ("Bowsprit") (Lease No. 21754 & 21787) - PRM 100% working interest1.

The Bowsprit leases are located approximately 70km southeast of New Orleans in approximately 3m of water. Bowsprit is assessed to contain an undeveloped conventional Miocene aged oil sand at a depth of approximately 7,400ft (2,255m) that is located above a deeper, 9,500ft gas field that was developed in 1960s by Shell. Consequently, the Bowsprit field contains 14 vertical well penetrations and has demonstrated producible oil from an upper Miocene sand. The 30ft thick oil sand was flowed successfully in 1960s from four wells and produced approximately 75,000 bbls of oil, but full field development was not practical with the vertical well technology of the time (~100bopd declining to 40 bopd / well).

PRM plans to drill a vertical pilot hole to evaluate the prospective reservoirs and then pull back and deviate the well to place a horizontal well between former production wells in the proven (flowed) Upper Miocene Sand. The field will be rapidly placed on production either by low cost tie-back to a near-by facility for early cashflow and/or, if the Lower Miocene reservoir (prospective resources) are present and the accumulation is sizable, via a dedicated new unmanned production facility with additional development drilling.

Farm-Out Progress

Subject to completion of the Pinnacle buyout, PRM now has a 100% working interest and is Operator of the Leases. PRM is seeking a new partner(s) to join the project. The Company and its agents are now re-engaging with interested parties (activity was curtailed due to COVID 19) and pending the US election result.

Land Status (net acres of mineral leases)

Below is a table showing PRM's net acres of oil and gas mineral leases in the project area.

(Total acres as at 30 June 2020)

On 29 July 2019 - PRM announced a buyout of the co-lessee to move to 100% Working interest and 74% net revenue interest in both leases and thus increase the Company's net interest to 1154 net acres. This deal is not yet completed. The deadline for completion has been extended with Pinnacle to 31 December 2020 with an option to extend to March 2021.

OIL AND GAS PRODUCTION

There was no oil production for the September 2020 Quarter.

1 Subject to completion of buyout

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CORPORATE

PRM held cash of $1.2 million at the end of the September 2020 Quarter.

The Company held an EGM on 10 July 2020, to ratify and approve a consolidation of Shares on a 10 for 1 basis. The Company completed the share consolidation and normal trading on T+2 basis commenced 23 July 2020.

In accordance with the terms of the Convertible Notes previously announced and as approved by Shareholders at the Company's EGM's on 30 January 2020 and 10 July 2020, notes totalling $300,000 and accrued interest was converted to shares at a price of 0.4cents per share, during the quarter. The Convertible Notes were held by major shareholders, the Company's corporate advisor GTT Ventures Pty Ltd and Chairman Mr Ian McCubbing. Conversion of the debt improved the Company's financial position and demonstrated long-term support for the Company.

Capital Raising

On 30 July 2020, the Company placed 30,000,000 shares at 0.5cents per share to raise $150,000 before costs. The placement included 15,000,000 free attaching options, on the basis of one option for every two shares subscribed for, subject to shareholder approval. The Options have an exercise price of 2c and an expiry date of 1 September 2023.

The Company undertook a pro rata non-renounceable rights issue. The rights issue intended to issue up to 240,791,173 shares to raise up to $1,203,956 (before costs) and was offered to eligible shareholders on the basis of one new share for every one share held in the Company at the record date of 12 September 2020, at an issue price of $0.005 each per New Share. In addition, one free-attaching option was issued for every two new shares allotted, exercisable at $0.02 each per share on or before 1 September 2023.

The Company received valid entitlement applications for 158,922,395 shares ($794,611.98) representing a 66% take up of entitlements, furthermore, Shareholders applied for $811,981 in Shortfall.

The Shortfall Offer was for a total of 81,868,778 shares. The Company allocated Shortfall in accordance with the terms in Section 1.7 of the Company's Prospectus dated 8 September 2020 and excess funds were returned accordingly.

GTT Ventures, the Company's Corporate Advisor managed the Capital Raising, which was well supported. GTT were entitled to a 6% capital raising fee on the $150,000, along with the issue of a total of 50,000,000 options (subject to shareholder approval) with an exercise price of 2c and expiry date of 1 September 2023.

Following the issue of the Placement shares, Rights issue Shares and Shortfall, the Company has 490,072,072 shares on issue.

Subsequent to the Quarter

Anna Mackintosh was appointed as CFO and Company Secretary on 23 October 2020.

A convertible note of $25,000 and accrued interest was converted to shares at a price of 0.4cents per share by the Company's corporate advisor GTT Ventures Pty Ltd.

Notes Pertaining to Quarterly Cashflow report.

Item 2.1(d) Capitalised Exploration and evaluation costs were $78,719 for the quarter.

Item 6.1: The aggregate amount of payments to related parties and their associates of $27,000, is comprised of $20,000 in renumeration to the Managing Director and $7,000 to Non-Executive Directors paid during the quarter. Item 6.2: Payment to GTT Ventures for Placement fees of $10,000 as P Glovac is a Director and shareholder of GTT.

BY ORDER OF THE BOARD

Anna Mackintosh,

Company Secretary

Telephone: +61 (08) 9321 9886

Email:admin@ProminenceEnergy.com.au

This report is lodged on the Company's website, www.ProminenceEnergy.com.au.

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Forward-looking Statements

This document may contain certain statements that may be deemed forward-looking statements. Forward-looking statements reflect Prominence's views and assumptions with respect to future events as at the date of the Announcement and are subject to a variety of unpredictable risks, uncertainties, and other unknowns that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Actual and future results and trends could differ materially from those set forth due to various factors that could cause results to differ materially include but are not limited to: industry conditions, including fluctuations in commodity prices; governmental regulation of the oil and gas industry, including environmental regulation; economic conditions in the US and globally; geological technical and drilling results; predicted production and reserves estimates; operational delays or an unanticipated operating event; physical, environmental and political risks; liabilities inherent in oil and gas exploration, development and production operations; fiscal and regulatory developments; stock market volatility; industry competition; and availability of capital at favourable terms. Given these uncertainties, no one should place undue reliance on these forward-looking statements attributable to Prominence, or any of its affiliates or persons acting on its behalf. Although every effort has been made to ensure this Announcement sets forth a fair and accurate view, we do not undertake any obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

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