August 2018

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Forward Looking Statements

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This presentation contains forward-looking statements, including without limitation those statements regarding Citadel’s ability to exploit mining concessions. The statements and discussions

contained in this presentation that are not historical facts constitute forward-looking statements, which can be identified by the use of forward-looking words such as "believes," "expects,"

"may," "intends," "anticipates," "plans," "estimates" and analogous or similar expressions intended to identify forward-looking statements. Citadel wishes to caution the reader of this

presentation that these forward-looking statements and estimates as to future performance, estimates as to future valuations and other statements contained herein regarding matters that are

not historical facts, are only predictions, and that actual events or results may differ materially. Citadel cannot assure or guarantee you that any future results described in this presentation will be

achieved, and actual results could vary materially from those reflected in such forward-looking statements. We assume no obligation to update any forward-looking statements in order to reflect

any event or circumstance that may arise after the date of this presentation, other than as may be required by applicable law or regulation. Reserve and Resource Disclosure: Securities and

Exchange Commission (“SEC”) rules prohibit a publicly-reporting oil and gas company from including oil and gas resource estimates in its filings with the SEC, except proved, probable and possible

reserves that meet the SEC’s definition of such terms. Estimates of non-proved and non-probable reserves included herein are not based on SEC definitions and guidelines and may not meet

specific definitions of reserves or resource categories within the meaning of the SPE/SPEE/WPC Petroleum Resource Management System.

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Kern County California: Heart of California Oil

Yowlumne Area –2,800 acres

Kern Bluff Area –1,100 acres

Largest Producing County in the United States ~ 400,000 BOPD

Citadel currently has 3,900 acres in Kern County under lease

Kern County is the Heart of California Oil Production with four of the top ten oil fields in the U.S.

Midway Sunset - 3.4 Billion BarrelsKern River - 2.5 Billion BarrelsSouth Belridge - 2.0 Billion BarrelsElk Hills - 1.5 Billion Barrels

Strong service industry and infrastructure to support redevelopment opportunities

Business & Oil friendly environment

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Executive Summary

Capital Structure▪ (OTCQB: COIL) 45MM shares issued (60MM fully diluted including options & restricted shares)▪ $8.0 MM in Series A Convertible Participating Preferred Stock (Convertible at $0.20/40MM shares)▪ $1,750,000 drawn on $3MM Senior Secured Debt Facility.

Founder & CEO: Armen Nahabedian – 4th Generation Oilman▪ Extensive database & knowledge provide first-mover advantage▪ Experienced operator with boots on the ground advantage▪ United States Marine 1999 – 2003; Infantry veteran of Iraq war

CFO: Phil McPherson – 11 Years as a Small Cap E&P Analyst▪ Noted expert on California E&P companies▪ Wall Street Journal “Best on the Street” in 2011 ▪ East Carolina University 97’ – B.A. Economics

Core Asset Under Development: Kern Bluff Oil Field▪ 25MM BTU Steam Generator – Currently Steaming 10 wells▪ Producing ~100 Barrels of Oil per day. ▪ 4 Well Drilling Program ( 1 horizontal / 3 vertical) Planned for 4Q18▪ Inventory of 20 Recompletions & 400 potential development locations.

The Next Great California Independent

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Kern Bluff Oil Field: Discovered in 1944 by Shell

▪ Acquired Kern Bluff in July 2015 for $2MM in cash & 6MM shares of Common Stocko 1,100 acres & One producing well - #324 Horizontal producing ~5 BOPD

o 29 idle well bores – all candidates to be returned to production

▪ Field Estimated to hold over 100 Million Barrels of oil in place (OOIP) o 169 Vertical Wells drilled from 1950’s to 1980’s have recovered ~ 12 Million barrels or 20% of OOIP

o Similar fields in this area have achieved recovery levels exceeding 60% of OOIP

o Current well spacing equates to ~2.5 to 5.0 acres. Analogous fields down spaced to ~1.25 acre

o Over 300 New Vertical locations & 100 Horizontal locations identified

▪ August 2015 to June 2018 Spent $8.0MM in CAPEX

o Major facility Upgrade Completed in July of 2016 – Production capacity of ~500 BOPD

o Reworked 7 vertical wells and drilled 3 new vertical wells in 2016.

o Purchased and Installed 25MM BTU Steam Generator in 2018 – 1,500 Barrels of Steam per day capacity.

o Currently producing ~100 Barrels of oil per day.

o 2 Well Drilling Joint Venture in 1Q18 – JV Partner has 90% working interest until payout, 20% after.

o 1 new well 100% owned by Citadel drilled in 1Q18.

▪ Next 12 Month CAPEX $5.0 MM

o Drill 1 Horizontal Well 4Q18 ~$1MM ~ 150 BOPD

o Drill 10 New Vertical Wells ~$3MM ~300 BOPD

o Facility Expansion 2H19 ~ $1MM

o Target 20-30 producing wells and ~600+ BOPD – self fund future growth from cash flow at $60.00 oil.

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Kern Bluff Oil Field: CAPEX Timeline vs Oil Prices

Purchased Kern Bluff$2MM + 6MM shares

Built New Production Facilities - $3MM

Drilled 3 New Wells$1MM

Drilled 3 New Wells $1MM

Purchased 25MM BTU Steam Generator $1MM

Return to Production 7 Idle Wells $1MM

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Facility Upgrade Complete:

Capable of processing 500 barrels of oil per day

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Installation of Steam Generator:

25MM BTU Generator – Steam 50 wells per Year

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Thermal Recovery Methods

• Cyclic Steaming also called Huff & Puff (Method to be deployed by Citadel)• Phase I inject 5,000 to 10,000 barrels of steam into reservoir (5 – 10 days)• Let steam soak and permeate the rock (5-10 days)

• Phase II – Return pump and begin production• Continue production for 180+ days then repeat

as reservoir cools.

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Kern Bluff Geology: Five Stacked Oil Zones

Chanac – Transition - 1st, 2nd & 3rd Benches of the Santa Margarita

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Field Development Program

Map of Kern Bluff proper ~ 320 acres - location of current development

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New Vertical Well Production Profile:

Average EUR of 70,000 BOE

5,000 to 10,000 Barrels of Steam

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Return to Production (RTP) Production Profile

Average EUR of 29,000 BOE

5,000 - 10,000 Barrels of Steam

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Economic Profile: 300% ROI

Economics for Vertical, Horizontal & RTP’s at $60.00 Oil Deck

Cost Assumptions Cost Assumptions Cost Assumptions

Net Wel l Cost $250,000 Net Wel l Cost $1,000,000 Net Wel l Cost $75,000

LOE per Boe $25.00 LOE per Boe $25.00 LOE per Boe $25.00

Working Interest 100% Working Interest 100.0% Working Interest 100%

Royalty 23% Royalty 23% Royalty 23%

Severence Tax 2% Severence Tax 2% Severence Tax 2%

Performance Assumptions Performance Assumptions Performance Assumptions

30-Day IP Rate (Boepd) 50 30-Day IP Rate (Boepd) 150 30-Day IP Rate (Boepd) 20

10,000 BOS Annualy 25,000$ 30,000 BOS Annualy 75,000$ 5,000 BOS Twice a Year 25,000$

1st Year Production 9,117 1st Year Production 24,864 1st Year Production 4,505

Economics Economics Economics

Payout (Months) 11.0 Payout (Months) 12.0 Payout (Months) 6.0

EUR (Bbls ) 53,910 EUR (Bbls ) 224,062 EUR (Bbls ) 22,626

PV-10 PUD Wel l $810,886 PV-10 PUD Wel l $3,051,010 PV-10 PUD Wel l $347,534

PV-10 PUD Wel l per Bbl $15.04 PV-10 PUD Wel l per Bbl $13.62 PV-10 PUD Wel l per Bbl $15.36

Ful l Field Potentia l ~300 wells Ful l Field Potentia l ~100 wells Ful l Field Potentia l ~20 wells

Kern Bluff Vertical Kern Bluff Horizontal Kern Bluff - Recomplete

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Investment Summary: Don’t Miss a Good Downturn

Commodity Price Cycle Has Bottomed▪ Citadel able to buy a distressed asset while other companies forced to sell

▪ Low Risk Exploitation

▪ Potentially 20MM to 40MM Barrels Recoverable

▪ Full Field Potential of ~5,000 BOPD

▪ Phase I Facility Upgrade Complete

▪ Purchased/Installed Steam Generator - Steam capacity to grow to over 50 producing wells ~ 1,000 BOPD in production

▪ Pure play on California Oil & Higher Oil Prices

▪ California Oil Currently Trading at a $2.00 -$3.00 per Barrel Premium to WTI

▪ Significant Backing from Private Equity Energy Investor – Long Term View

The Best Place to Find Oil – Is where it has already been found

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Don’t Miss a Good Downturn

World Headquarters:417 31st St. Unit ANewport Beach, CA 92663949-612-8040Phil McPherson, CFOpjm@citadelexploration.comwww.citadelexploration.comOTCQB: COIL

Kern Bluff Field Office:8850 Paladino Dr. Bakersfield, CA 93308805-910-5369Armen Nahabedian, President / CEOarmennahabedian@gmail.com