i3 Energy plc, an independent oil and gas company with assets and operations in the UK, provides the following update on the status of its discussions regarding the proposed joint venture announced on 27 June 2018 and to announce it has raised $2.1 million through a placing of shares.

Highlights:

• Negotiations continue regarding the proposed terms of a commercial arrangement between i3 and the potential farminee.
• Significant progress has been made in preparing a legally binding Farmout Agreement ("FOA"), Joint Operating Agreement ("JOA") and associated binding legal documentation which are expected to be signed before the end of the exclusivity period which runs to 24 September 2018.
• A Joint Venture project team has been formed between i3 and the potential farminee with expectation that the enlarged Phase I Liberator Field Development Plan ("FDP") will be submitted to the Oil & Gas Authority ("OGA") for consultation shortly after the parties enter into the FOA.
• i3 continues to target first oil from the Liberator Oil Field during 2019.
• Approximately US$2.1 million raised through the placing of 1,542,336 new ordinary shares at 105 pence per Share with existing institutional investors.
• Proceeds of the placing to be used in funding a time-critical site survey and near-term engineering to enable the FDP approval for two Liberator development wells, the Block 13/23c ("Liberator West") appraisal well, and the intended pipeline route and tie-in locations.

Neill Carson, i3's CEO, commented:
"We continue to make excellent progress with our proposed joint venture partner and remain optimistic that the legal documentation will be signed before the end of the exclusivity period with submission of the enlarged Liberator Phase I FDP to follow shortly thereafter.

"The small capital raise announced today allows i3 to secure critical resources and conduct operations that keep the Liberator development on track for first oil in 2019.  We look forward to updating our shareholders in due course."

Update on Joint Venture Negotiations

As announced on 27 June 2018, the Company has granted a period of exclusivity to a potential farminee in order to conclude contractual negotiations which, upon success, would result in i3 being fully funded for both the Liberator field development and the appraisal of Liberator West.

i3 and the potential farminee continue to work closely to progress the FOA, JOA and other legal documentation required to formalize the joint venture arrangements. The formation of the Joint Venture project team has enabled both parties to work together to prepare the updated Liberator Phase I FDP for presentation to the OGA once the FOA has been signed.

There can be no certainty that these negotiations and discussions will lead to definitive agreements.

Placing to raise approximately US$2.1 million

In order to seek FDP approval and maintain i3's target of first oil from Liberator during 2019, site surveys and critical project and engineering resources are required over the updated enlarged development area, appraisal well and pipeline route locations.  It is the Company's preference for survey operations to occur during September 2018 when more benign weather conditions can be expected than during Q4.

To conduct the survey within this timeframe, the Company needs to contract a survey vessel and associated engineering resources in the very near term and the Company has accordingly raised approximately US$2.1 million through the placing of 1,542,336 new ordinary shares in the capital of the Company at an issue price of 105 pence per Share (the "Placing Price"). The net proceeds of the funding will be used towards the costs of the site survey, analysis of the data acquired, and near-term engineering required to enable Field Development Plan submission and approval.