This research report has been prepared by VSA Capital Limited, which is party to an agreement to be paid a fee as corporate finance advisors and arrangers with, or has provided investment banking services to, Prospex Energy, or has been party to such an agreement within the last twelve months, and is solely for, and directed at, persons who are Professional Clients as defined under Annex II of the Markets in Financial Instruments Directive, Directive 2004/39/EC, or as defined in the FCA Handbook. Persons who do not fall within the above category should return this research report to VSA Capital Limited, Park House, 16-18 Finsbury Circus, London EC2M 7EB, immediately.

This research report is not intended to be distributed or passed on, directly or indirectly, to any other class of persons. It is being supplied to you solely for your information and may not be reproduced, forwarded to any other person or published, in whole or in part, for any purpose, without out prior written consent.

This research report is exempt from the general restriction on the communication of invitations or inducements to enter into investment activity and has therefore not been approved by an authorised person, as would otherwise be required by Section 21 of the Financial Services and Markets Act 2000 (the “Act”), as amended by The Financial Services and Markets Act 2012.

Neither the information nor any opinion expressed constitutes an offer, or an invitation to make an offer, to buy or sell any securities or any options, futures or other derivatives related to such securities.

The information and opinions contained in this research report have been compiled or arrived at by VSA Capital Limited (the “Company”) from sources believed to be reliable and in good faith but no representation or warranty, express or implied, is made as to their accuracy, completeness or correctness. All opinions and estimates contained in the research report constitute the Company’s judgments as of the date of the report and are subject to change without notice. The information contained in the report is published for the assistance of those persons defined above but it is not to be relied upon as authoritative or taken in substitution for the exercise of the judgment of any reader.

The Company accepts no liability whatsoever for any direct or consequential loss arising from any use of the information contained herein. The company does not make any representation to any reader of the research report as to the suitability of any investment made in connection with this report and readers must satisfy themselves of the suitability in light of their own understanding, appraisal of risk and reward, objectives, experience and financial and operational resources.

The value of any companies or securities referred to in this research report may rise as well as fall and sums recovered may be less than those originally invested. Any references to past performance of any companies or investments referred to in this research report are not indicative of their future performance. The Company and/or its directors and/or employees may have long or short positions in the securities mentioned herein, or in options, futures and other derivative instruments based on these securities or commodities.

Not all of the products recommended or discussed in this research report may be regulated by the Financial Services and Markets Act 2000, as amended by The Financial Services and Markets Act 2012, and the rules made for the protection of investors by that Act will not apply to them. If you are in any doubt about the investment to which this report relates, you should consult a person authorised and regulated by the Financial Conduct Authority who
specialises in advising on securities of the kind described.

The Company does and seeks to do business with the companies covered in its research reports. Thus, investors should be aware that the Company may have a conflict of interest that may affect the objectivity of this report. To view our policy on conflicts of interest and connected companies, please go to: http://www.vsacapital.com/policies/conflict-of-interest-policy.

VSA Capital acts as Joint Broker to Prospex Energy and is therefore classed as a connected company.

Investors should consider this report as only a single factor in making their investment decision.

The information in this report is not intended to be published or made available to any person in the United States of America (USA) or Canada or any jurisdiction where to do so would result in contravention of any applicable laws or regulations. Accordingly, if it is prohibited to make such information available in your jurisdiction or to you (by reason of your nationality, residence or otherwise) it is not directed at you.

This document is not independent and should not be relied on as an impartial or objective assessment of its subject matter. Given the foregoing, this document is deemed to be a marketing communication for the purpose of the European Markets in Financial Instruments Directive (MiFID), the Financial Conduct Authority’s Rules and Dubai Financial Services Authority’s Conduct of Business Rules and as such has not been prepared in accordance with legal requirements designed to promote the independence of investment research and FoxDavies Capital is not subject to any prohibition on dealing ahead of dissemination of this document as it would be if it were independent investment research.

In Fox-Davies Capital’s view this document is considered an “acceptable minor non monetary benefit” under MiFID II as it is either: (i) “nonsubstantive short-term market commentary”; and/or (ii) making a brief reference to existing Fox-Davies Capital research and, as such, is inand-of-itself non-substantive; and/or (iii) paid for by a corporate issuer or potential corporate issuer as part of a contractual engagement with Fox-Davies Capital.

This document is protected by international copyright laws and is for the recipient’s use in connection with considering a potential business relationship with Fox-Davies Capital only. This document and any related materials are confidential and may not be distributed or reproduced (in whole or in part) in any form without Fox-Davies Capital’s prior written permission.

This document should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action.

This document is not based upon detailed analysis by Fox-Davies Capital of any market; issuer or security named herein, has not been independently verified and does not constitute a formal research recommendation, either expressly or otherwise. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity. Fox-Davies Capital and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.

The information contained herein is based on materials and sources that we believe to be reliable, however, Fox-Davies Capital makes no representation or warranty, either express or implied, in relation to the accuracy, completeness or reliability of the information contained herein. Opinions expressed are our current opinions as of the date appearing on this material only. Any opinions expressed are subject to change without notice and Fox-Davies Capital is under no obligation to update the information contained herein or to correct any inaccuracies in this document which may become apparent. Neither Fox-Davies Capital nor any of its directors, members, advisers, representatives, officers, agents, consultants, or employees makes, or is authorised to make any representation, warranty or undertaking, express or implied, with respect to the information or opinions contained in it and none of them shall have any liability whatsoever for any indirect or consequential loss or damage arising from any use of this document. This document is being provided to you for information purposes only. This document has been prepared by the author based upon information sources believed to be reliable and prepared in good faith.

All statements of opinion and/or belief contained in this document and all views expressed and all projections, forecasts or statements regarding future events or possible future performance represent Fox-Davies Capital’s own assessment and interpretation of information available to it as at the date of this document. This document and any related materials may include certain forward-looking statements, beliefs, or opinions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There can be no assurance that any of the results and events contemplated by the forward looking statements contained in the information can be achieved or will, in fact, occur. No representation is made, or any assurance, undertaking or indemnity given to you that such forward looking statements are correct or that they can be achieved.

This report has been approved in the UK by Fox-Davies Capital Limited solely for the purposes of section 21 of the Financial Services and Markets Act 2000. In the UK, this report is directed at and is for distribution only to persons who (i) fall within Article 19(1) (persons who have professional experience in matters relating to investments) or Article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005 (as amended) or (ii) are professional clients or eligible counterparties of Fox-Davies Capital (all such persons together being referred to as “relevant persons”). This report must not be acted on or relied up on by persons in the UK who are not relevant persons. In accordance with the Dubai Financial Services  Authority’s Conduct of Business Rules, this marketing material is intended only for professional clients and market counterparties, and no other person should act upon it Neither the information nor the opinions expressed herein constitutes, or is to be construed as, an offer or invitation or other solicitation or recommendation to buy or sell investments. This document is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to local Jaw or regulation. In particular, the information contained in this document is not for publication, release or distribution, and may not be taken or transmitted into: (i) the United States or its territories or possessions, or distributed, directly or indirectly, in the United States, its territories or possessions or to any U.S. person as such term is defined in Regulation S of the Securities Act; or (ii) Australia, Canada, Japan, New Zealand or the Republic of South Africa. Any failure to comply with this restriction may constitute a violation of United States, Canadian, Japanese, New Zealand, or South African securities law. Further, the distribution of this document in other jurisdictions may be restricted by law, and persons into whose possession this document comes are required to inform themselves about, and observe, any such restrictions.

Investments in general involve some degree of risk, including the risk of capital loss. The value of investments contained herein may go up or down. Where investment is made in currencies other than the base currency of the investment, movements in exchange rates will have an effect on the value, either favourable or unfavourable. Securities issued in emerging markets are typically subject to greater volatility and risk of loss. The services, securities and investments discussed in this document may not be available to nor suitable for all investors.

Investors should make their own investment decisions based upon their own financial objectives and financial resources and, if in any doubt, should seek advice from an investment advisor. Past performance is not necessarily a guide to future performance and an investor may not get back the amount originally invested. Where investment is made in currencies other than the investor’s base currency, movements in exchange rates will have an effect on the value, either favourable or unfavourable. Levels and bases for taxation may change.

When we comment on AIM or OFEX shares you should be aware that because the rules for those markets are less demanding than the Official List of London Stock Exchange plc, the risks are higher. Furthermore, the marketability of these shares is often restricted.

Fox-Davies Capital and/or its associated companies may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Fox-Davies that is not reflected in this material and Fox-Davies Capital may have acted upon or used the information prior to or immediately following its publication. In addition, Fox-Davies Capital, the directors, and employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives, or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests. Neither the whole nor any part of this material may be duplicated in any form or by any means. Neither should any of this material be redistributed or disclosed to anyone without the prior consent of Fox-Davies Capital. Fox-Davies Capital Limited is authorised and regulated by the Financial Services Authority and is a member of the London Stock Exchange. Fox-Davies Capital (DIFC) Limited is authorised and regulated by the Dubai Financial Services Authority.

Fox-Davies Capital may distribute research in reliance on rule 15a-6(a)(2) of the Securities and Exchange Act 1934 to persons that are major US Institutional investors, however, transactions in any securities must be effected through a US registered broker-dealer. Any failure to comply with this restriction may constitute a violation of the relevant country’s laws for which Fox-Davies Capital does not accept any
responsibility.

Please note that unless otherwise stated, the share price used in this publication is taken at the close of business for the previous day. This document has been prepared on the basis of economic data, trading patterns, actual market news and events, and is only valid on the date of publication.

This document may contain information obtained from third parties. Reproduction and distribution of third-party content in any form is prohibited except with the prior written permission of the related third party. Third party content providers do not guarantee the accuracy, completeness, timeliness, or availability of any information, including ratings, and are not responsible for any errors or omission (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content. Third party content providers give no express or implied warranties, including, but not limited to, any warranties of merchantability or fitness for a particular purpose or use.

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