Neon Energy Ltd, ABN: 49 002 796 974, Ground Floor, 88 Colin Street, West Perth, 6005 Ph: +61 (08) 9481 1176 Fax: +61 (08) 9481 7720 PO Box 1789, West Perth, 6872 Website: www.neonenergy.com E-mail: info@neonenergy.com

ANNOUNCEMENT TO THE AUSTRALIAN SECURITIES EXCHANGE: 6 June 2013

BLOCK 120 EXPLORATION UPDATE

Highlights Additional prospect identified by 3D seismic 3D seismic suggests potential for gas in addition to oil Prospect selection anticipated July 2013 Songa Mercur rig to drill selected prospect, commencing early September Neon Energy Limited (ASX: NEN) is pleased to provide the attached presentation regarding the ongoing evaluation of the 3D seismic data located within the Company’s offshore Vietnam Block 120.

The 500km2 3D seismic programme, completed in mid 2012, was designed to delineate prospects in the vicinity of the 120-CS-1X well, drilled by BHP in 1993. That well encountered 32 metres of oil shows and a 6 metre oil column within Miocene reef carbonates, confirming the presence of a working petroleum system.

The 3D seismic data has advanced the joint venture’s understanding of the potential reservoir and hydrocarbon distribution within Block 120 and has also revealed an additional prospect, Ca Ngu, which together with Rua Bien and Ca Lang is a candidate for drilling of the first exploration well.

Map of Block 120 showing location of primary prospects and 3D seismic area

The improvement in seismic data quality reveals a significantly thicker Oligocene syn-rift section than previously thought, which potentially increases the volume of mature source rock available to generate hydrocarbons. The associated increase in depth of burial of the prospective Oligocene section also opens up the possibility of local gas generation within the syn-rift half-graben. The seismic character of shallow objectives with strong amplitude anomalies in Rua Bien and Ca Ngu support the presence of at least some gas within the reservoir. As such, the three primary prospects within Block 120 are now regarded as prospective for both oil and gas. In the event of a gas discovery the Block 120 Production

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Sharing Contract provides for a higher contractor profit share of gas than for oil, thereby supporting development economics.

Seismic interpretation and analysis of the three prospects is nearing completion, and volumetric & risk assessment will lead to prospect selection by the joint venture in July 2013. The selected prospect will be announced by the Company at that time, and will include updated prospective resource estimates for both oil and gas cases.

In May 2011 Netherland Sewell & Associates Inc. (NSAI) completed a Prospective Resource Assessment* of Ca Lang and Rua Bien, confirming gross unrisked prospective recoverable resources respectively for an oil case of 461 MMbbls and 611 MMbbls (best estimate), and 1,311 MMbbls and 1,724 MMbbls (high estimate)1. Following evaluation of the 3D seismic data Neon believes the estimates of prospective resources for Rua Bien remain unchanged for the oil case. The prospective resources for Ca Lang remain unchanged as the prospect was not targeted by the 3D seismic programme, being sufficiently robust that 3D seismic coverage was not warranted.

Managing Director Ken Charsinsky commented “The new 3D seismic has improved our understanding of Block 120 and confirms our long held view of its prospectivity. We look forward to final prospect selection by the joint venture in July, and to commencement of drilling in September of this year.”

The Block 120 exploration well will be drilled with the Songa Mercur semi-submersible drilling rig, with the updated timing confirmed by the Operator as early September 2013. Pursuant to the terms of the farmout agreement with Eni, Neon will be carried through the drilling of the well up to a gross cost cap of US$20 million. Any costs in excess of the cost cap will be borne by the parties as per their respective working interests, which are as follows:

Eni Vietnam BV (Operator) 50%

Neon Energy (Song Hong) Pty Ltd 25%

KrisEnergy (Song Hong 105) Ltd 25%

_________________________________________________________________________ Enquiries: Managing Director: Ken Charsinsky

Chief Financial Officer: Ben Newton

Telephone: 08 9481 1176

Website: www.neonenergy.com

*The report by NSAI was compiled by Mr. Allen E. Evans, Jr.,Vice President – Senior Technical Advisor, and Mr. Eric J. Stevens, Petroleum Engineer, of NSAI. Mr. Evans and Mr. Stevens are qualified in accordance with the ASX listing rule 5.11. Mr. Evans a practicing geologist for 28 years, has given his consent to the release of the Prospective Resources estimates contained in this report, as has Mr. Stevens, a practicing engineer for 9 years. The estimates of Prospective Resources included in this announcement have been prepared in accordance with the definitions and guidelines set forth in the 2007 Petroleum Resources Management System (PRMS) approved by the Society of Petroleum Engineers (SPE). The PRMS defines Prospective Resources as those quantities of petroleum which are estimated, as of a given date, to be potentially recoverable from undiscovered accumulations.

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Neon Energy Limited

Date: 6 June 2013

Block 120 Investor Presentation

Exploration Update

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Neon Energy Limited Offshore Vietnam: Block 120

•  Large block with only one well drilled to date

•  Petroleum systems in place •  Oil column in BHP well confirms oil system

•  New 3D seismic data suggests mixed oil and gas system

•  On geological trend with potentially significant ExxonMobil gas discovery to north

•  Prospect water depths 200 to 350 metres •  Multiple petroleum plays and prospects •  Prospective for large hydrocarbon

accumulations

Ham Rong commercial oil

discovery

Appraisal of significant gas

discoveries

Farmout to Eni

Oil discovery on block

Exploration drilling

scheduled early June

2013

Major gas discovery by ExxonMobil

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Neon Energy Limited Neon’s History

•  Signed Production Sharing Contract in January 2009 •  Initially Operator and 100% interest holder •  Farmed out to KrisEnergy in 2010, funding 2D

seismic commitment •  Farmed down to Eni S.p.A. in 2012

•  Neon retains a 25% working interest and Eni now Operator

•  Carried through 3D seismic programme (completed 2012)

•  Substantially carried through drilling of exploration well*

Songa Mercur will commence drilling in early September 2013

* Subject to cost cap of US$20 million

Image: Songa Mercur semi-submersible drilling rig

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Neon Energy Limited Status of Work Programme

•  Final processed 3D seismic volume received late March 2013 •  Structural and stratigraphic interpretation nearing completion •  Amplitude vs Offset (AVO) analysis in progress

•  Currently three prospects high graded as potential exploration drilling candidates •  Ca Lang & Rua Bien – previously identified on 2D seismic data

•  Ca Ngu – new prospect identified on 3D seismic data •  Prospect ranking to commence shortly

•  Volumetric and risk analysis

•  Joint venture prospect selection anticipated July 2013 For

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Neon Energy Limited Hydrocarbon Plays

A’ A

Miocene Carbonate

Reef

Oligocene Synrift

Clastics

Quang Ngai Graben

Triton Horst

Mio-Pliocene Fan Sands

A

A’

Well 120-CS-1X

BHP 120-CS-1X well: oil column & shows in Miocene reef

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Neon Energy Limited Prospective Resources

•  Netherland, Sewell & Associates Inc. (NSAI) completed independent assessment of prospective recoverable resources

•  12 leads identified on 2D seismic available at that time

•  NSAI evaluation considered only an oil case based on the results of the 120-CS-1X well

•  Evaluation of the 3D seismic data now suggests that there could be oil and/or gas

Block 120 Cumulative Unrisked Prospective Recoverable Resources (Oil Case)

Prospect Low Estimate Best Estimate High Estimate

Leads Total (12) 633 MMbbls 2,674 MMbbls 7,947 MMbbls

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Neon Energy Limited Seismic Coverage

Block 121 (Origin Energy)

Block 120

Block 119 (ExxonMobil)

2012 3D seismic survey (500 km2)

2D seismic grid

BHP 120-CS-1X well: 6 metre column & 32 metres oil shows in

Miocene reef

119-CH-1X well: Miocene reef gas discovery

121-CM-1X well: Miocene gas shows

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Neon Energy Limited Seismic Example: 2D vs 3D

2D Data 3D Data

Interpreted top basement based

on 2D

Interpreted top basement

based on 3D Substantially thicker prospective Oligocene section than previously

thought

Possible breach point

(channel)

120-CS-1X Well 120-CS-1X Well

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Neon Energy Limited Primary Prospects

Rua Bien Ca Ngu

Ca Lang

BHP 120-CS-1X well

Ca Ngu upside case includes

Oligocene target not penetrated by 120-CS-1X well

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Neon Energy Limited Prospects: Seismic Example

Rua Bien Ca Ngu

Ca Lang

Basement imaged on 3D

Composite Seismic Line A-A’ (Combination of 2D & 3D)

120-CS-1X Wellbore A A’

Amplitudes

Carbonate Reef

Synrift Clastics

Amplitudes

Carbonate Reef

Synrift Clastics

Each of the prospective well locations can test multiple objectives

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Neon Energy Limited

3D Perspective Surface of Top Miocene Reef with Composite Seismic Line A-A’

3D Perspective View of Prospects

Rua Bien

Ca Ngu

Ca Lang

120-CS-1X Wellbore

The new 3D seismic data suggests that

the shallow objectives in Rua Bien and Ca

Ngu could be prospective for gas

as well as oil

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Neon Energy Limited Prospective Resources

•  Netherland, Sewell & Associates Inc. (NSAI) completed independent assessment of Rua Bien and Ca Lang prospective recoverable resources in 2011

•  Prospective Resources of Rua Bien supported by 3D seismic

•  Ca Lang prospective resources are based on 2D seismic; 3D coverage not deemed necessary due to size and integrity of structure

•  Resource assessment for gas cases and for Ca Ngu is in progress

Prospect Low Estimate Best Estimate High Estimate

Rua Bien (oil case) 160 MMbbls 611 MMbbls 1,724 MMbbls

Ca Lang (oil case) 126 MMbbls 461 MMbbls 1,311 MMbbls

Ca Ngu Pending volumetric assessment

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Neon Energy Limited Summary

•  Block 120 is considered highly prospective for oil and gas

•  Multiple petroleum plays •  Three candidates for first exploration well •  First well location likely focused on

discovering hydrocarbons rather than necessarily drilling the largest prospect

•  Final prospect selection in July 2013 •  Neon substantially carried through

exploration well, commencing August 2013 •  Exploration success in Block 120 could be a

transformative event for Neon Energy 3D perspective view of Ca Ngu geobodies above top Miocene carbonate reef

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Neon Energy Limited Prospective Resource Estimates

Prospective Resource Estimates  The report by NSAI was compiled by Mr. Allen E. Evans, Jr.,Vice President – Senior Technical Advisor, and Mr. Eric J. Stevens, Petroleum Engineer, of NSAI. Mr. Evans and Mr. Stevens are qualified in accordance with the ASX listing rule 5.11. Mr. Evans a practicing geologist for 28 years, has given his consent to the release of the prospective resources estimates contained in this report, as has Mr. Stevens, a practicing engineer for 9 years. The estimates of prospective resources included in this presentation have been prepared in accordance with the definitions and guidelines set forth in the 2007 Petroleum Resources Management System (PRMS) approved by the Society of Petroleum Engineers (SPE). The PRMS defines prospective resources as those quantities of petroleum which are estimated, as of a given date, to be potentially recoverable from undiscovered accumulations.

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Neon Energy Limited Disclaimer

This presentation has been provided for the sole purpose of providing preliminary background financial and other information to enable investors to review the business activities of the Company. This presentation contains interpretations and forward looking statements that are subject to risk factors associated with the oil and gas industry. It is believed that the expectations reflected in the presentation are reasonable but may be affected by a variety of variables and changes in underlying assumptions which could cause actual results to differ substantially from the statements made. Including but not limited to: production fluctuations, commodity price fluctuations, variations to drilling, well testing and production results, reserves estimates, loss of market, industry competition, environmental risk, physical risks, legislative, loss of mineral lease tenure, fiscal and regulatory developments, economic and financial market conditions, project delay or advancement, approvals and cost estimates. Investors should undertake their own analysis and obtain independent advice before investing in Neon Energy shares. All references to dollars ($) in this presentation are to US$ unless otherwise stated. The Company and its Directors, agents, officers or employees do not make any representation or warranty, express or implied, as to endorsement of, the accuracy or completeness of any information, statement representations or forecasts contained in this presentation and they do not accept any liability for any statement made in, or omitted from, this presentation.

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Neon Energy Limited

Neon Energy Limited Ground Floor, 88 Colin Street, West Perth, Western Australia 6005 Phone : +61 8 94811176

info@neonenergy.com www.neonenergy.com

Contact us

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