Quarterly Activities/Appendix 5B Cash Flow Report

• Optimisation of Dorado Phase 1 liquids development project expected to improve economics and lower CAPEX
• Assessing FPSO redeployment options to further reduce costs
• Preparing for exploration drilling in the highly prospective Bedout Sub-basin in 2025
• Continued focus on maximising shareholder value

Carnarvon Energy provided an update on its activities and financial position for the quarter ended 30 June 2024. The key highlights include the optimisation of the Dorado Phase 1 liquids development project, which is expected to improve project economics and significantly lower the upfront capital expenditure. The Joint Venture is assessing several idle FPSOs that could be repurposed for the project, with FEED re-entry expected to occur later this year and FID expected in 2025. The company also provided an update on its exploration activities in the highly prospective Bedout Sub-basin, offshore Western Australia. The four Bedout exploration blocks are substantially covered by modern broadband 3D seismic data, which has resulted in an excellent 67% success rate, with 4 discoveries from 6 wells. Preparatory work for exploration drilling in 2025 and beyond is well advanced, with a focus on unlocking gas resources to underpin the proposed Phase 2 gas export development.Carnarvon continues to make progress on its strategic objectives, with J.P. Morgan assisting to explore options to maximise shareholder value. The company has also continued to reduce its ongoing corporate and administrative cost base, which is now budgeted to be over 40% lower compared to the 2023 cost base, to maintain the strength of its balance sheet to fund the Dorado development.Carnarvon ended the quarter with A$180 million in cash, no debt, and US$90 million in Dorado development cost carry, putting the company in a strong financial position to fund its share of the Dorado development.

Carnarvon estimates that the overall CAPEX prior to first oil for the Dorado Phase 1 liquids development will be below the previous guidance of ~US$2 billion (gross). The company expects to be fully funded for its share of the development with its strong balance sheet, the US$90m development cost carry, and optionality for a prospective debt facility.

Carnarvon continues to make progress on the Dorado development, with FEED re-entry expected later this year and FID expected in 2025. The company also remains open to exploring alternative transactions to accelerate value realisation and is working with J.P. Morgan to consider its strategic options.