Replacement Bidder's Statement (Clean)

• Horizon Oil offers A$0.008 cash and 0.5625 Horizon shares per Cue share
• Offer is subject to 50.1% minimum acceptance condition
• Horizon believes the combination will create a stronger, more diversified energy company

Horizon Oil Limited (Horizon) has made an off-market takeover bid to acquire all the ordinary shares in Cue Energy Resources Limited (Cue) that Horizon does not already have a relevant interest in. Under the offer, Cue shareholders will receive a combination of A$0.008 cash and 0.5625 Horizon shares for each Cue share. The offer is subject to a 50.1% minimum acceptance condition and other standard conditions. Horizon believes the combination of the two companies will create a stronger, more diversified energy company with increased scale, enhanced financial flexibility, and a broader portfolio of assets. The replacement bidder's statement sets out the terms and conditions of the offer, as well as information about Horizon, Cue, and the combined group. Cue shareholders are advised to read the statement carefully and seek independent financial, legal or other professional advice before deciding whether to accept the offer.