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TSX.V: ADL

A TSX-V Listed Oil and Gas Company

Exclusively Focused on the East Mediterranean

1

Corporate Presentation October 2012

TSX.V: ADL

Forward Looking Statements

Certain statements contained in this presentation, and in certain documents incorporated by reference in

this presentation, constitute "forward-looking statements". All statements other than statements of

historical fact contained in this presentation, including, without limitation, those regarding the

Corporation's future financial position and results of operations, strategy, plans, objectives, goals and

targets, future developments in the markets where the Corporation participates or is seeking to

participate, and any statements preceded by, followed by or that include the words "believe", "expect",

"aim", "intend", "plan", "continue", "will", "may", "would", "anticipate", "estimate", "forecast", "predict",

"project", "seek", "should" or similar expressions or the negative thereof, are forward-looking statements.

These statements are not historical facts but instead represent only the Corporation's expectations,

estimates and projections regarding future events. These statements are not guarantees of future

performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore,

actual results may differ materially from what is expressed, implied or forecasted in such forward-looking

statements. Additional factors that could cause actual results, performance or achievements to differ

materially include, but are not limited to, those discussed under "Risk Factors" in the short form

prospectus to which this presentation relates. Management provides forward-looking statements because

it believes they provide useful information to readers when considering their investment objectives and

cautions readers that the information may not be appropriate for other purposes. Consequently, all of the

forward-looking statements made in this presentation are qualified by these cautionary statements and

other cautionary statements or factors contained herein, and there can be no assurance that the actual

results or developments will be realized or, even if substantially realized, that they will have the expected

consequences to, or effects on, the Corporation. These forward-looking statements are made as of the

date of this presentation and the Corporation assumes no obligation to update or revise them to reflect

subsequent information, events or circumstances or otherwise, except as required by law.

The forward-looking statements in this presentation are based on numerous assumptions regarding the

Corporation's present and future business strategies and the environment in which the Corporation will

operate in the future, including assumptions regarding expected yields, future prices, business and

operating strategies, and the Corporation's ability to operate its production facilities on a profitable basis.

Some of the risks which could affect future results and could cause results to differ materially from those

expressed in the forward-looking statements contained herein, including risks associated with the

Corporation, such as lack of revenue, risks associated with the Corporation's business, such as the

failure to obtain or maintain necessary licenses, and risks associated with the common shares of the

Corporation, such as stock market volatility.

.

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Source: USGS, Levant Basin

TSX.V: ADL

The Opportunity

East Mediterranean

• The host of the two largest worldwide gas

discoveries of this decade

• Oil could be the next natural resource headline

story for Israel

• USGS estimates Levant Basin 122TCF gas,

1.7BBbL oil*

• Noble Energy’s recent estimates on the Mesozoic

oil potential at Leviathan (gross unrisked resource)

• 210 MMBOE – 1.5BBOE

• Syrian Arc extends from Syria to Egypt and the

associated structures form the oil trend in Israel

• Regional demand for oil - Israel currently imports

230,000 BOPD

• Gazprom and Woodside bidding on Leviathan

Adira Energy

• Pure & exclusive exposure to the offshore oil and

gas discovery region, East Mediterranean

• Looking for oil where it has already been found

• Major working interest and operator of three

offshore licenses

• Three NI 51- 101 Resource Reports complete on

Gabriella, Yitzhak and Samuel licenses

• Licenses close to infrastructure, near shore, and

technically routine

• Board, Management and technical teams with

extensive knowledge of region and experience in

public company sectors

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* Source: USGS. Estimates may not be NI 5I – 101 compliant

TSX.V: ADL

Amos Lasker - Co-Chairman Over 30 years experience in founding and managing Israeli and international companies in the area of Telecommunication, high tech,

infrastructure and energy. Former President & CEO of Israel Electric Corporation (“IEC”) (2008-2011). IEC is one of largest

industrial companies in Israel – annual total revenues over US $5.5 billion and total assets of US $22.3 billion.

Jeffrey E Walter - Chief Executive Officer

Oil and Gas executive with over 30 years in the industry, 27 of which with Noble Energy, 8 years focused in East Med. Former Vice

President of Europe and Mediterranean, Noble Energy. Led team responsible for Tamar Field offshore Israel discovery - largest global

conventional gas discovery in 2009 with over 8 Tcf announced to date. Increased Noble’s offshore Eastern Mediterranean portfolio

which included the discovery of the Leviathan and Block 12 in Cyprus (increased acreage from 600,000 gross to 3,000,000 gross.

Bachelors degree in Geology from the University of New Mexico.

Gadi Levin - Chief Financial Officer Chartered Accountant with experience in the public and private equity markets, spanning multiple jurisdictions including North America,

Europe and Israel. Bachelor of Commerce degree in Accounting and Information Systems and MBA from Bar Ilan University in Israel.

Has a Chartered Accountant Designation.

Moshe Politi - Chief Geologist 39 years of experience, specializing in the integration of multi-disciplinary aspects of geology and geophysics into viable prospects in

various environments: onshore, offshore, shallow and deep prospects, structurally complex (overthrust) and stratigraphic plays focused

in the East Mediterranean. Bachelor and Master Degrees in Geology from The Hebrew University in Jerusalem and is currently engaged

in his PhD studies in Jerusalem.

Alon Polishuk - VP of Contracts Administration and Regulations Over 5 years in Government Services of Israel. Extensive experience in project management, business development and expertise in

legal analysis and critical examination. Specializes in Law and was admitted to the Israel Bar in 2001. Holds a BA, Business (Finance)

from the Arison School of Business, as well as LLE, Radzyner School of Law, Interdisciplinary Center, Herzliya.

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Israel Corporate Team

Providing all engineering management services for Gabriella and Samuel

TSX.V: ADL

Dennis Bennie – Co-Chairman Co-Founder Adira Energy. Founder and CEO of XDL Capital; Co-founder, Former Chairman and CEO of Delrina Corporation; former

Chairperson of Canada Israel Political Affairs Committee (CJPAC).

Amos Lasker – Co-Chairman

Richard P. Crist – Independent Director Over 42 years of oil and gas experience, with broad range of managerial and technical expertise. 25 years in corporate and senior

management roles. Currently an officer of Gasco Energy. Prior, Crist held senior positions including Executive VP, Business Development

for Delek US, Executive VP, Business Development for Elk Resources. Degree as an engineer of geophysics with a minor in geology from

the Colorado School of Mines in Golden, Colo. He is a member of Society of Exploration Geophysicists and the American Association of

Petroleum Geologists and is a Certified Petroleum Geologist.

Sheldon Inwentash - Independent Director A Chartered Accountant with over 20 years experience in investment industry. Chairman and CEO of Brownstone Energy and also the

Chairman and CEO of Pinetree Capital Ltd., a Canadian investment company with a portfolio of investments primarily in the resource and

energy sectors.

Alan Friedman - Executive Vice President - Corporate Development, Director Co-Founder Adira Energy. Senior roles in resource public market sector and emerging markets covering acquisitions, disposals,

financings and investor communications. Over the decade, has managed or facilitated numerous successful transactions (IPO & RTO) on

TSX and TSX-V and financings in excess of $100m. Various roles in TSX companies, Afriore Ltd., Talon Metals Corp. and Auryx Gold

Corp (recently sold to B2 Gold in excess of $150mm).

Colin Kinley – Director 31 years international expertise in energy project management and new energy companies development. Served as a Senior Executive to

several E & P companies & oilfield service companies and is specialized in frontier resource development. Director and CEO of Manx

Energy Inc. - an Company developing Heavy Oil in Canada, Director of Excelsior Minerals and CEO of Kinley Exploration LLC, leading a

team providing professional, technical and oversight to international resource companies within the upstream sector.

Jeffrey E Walter – Director and Chief Executive Officer

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Board of Directors

TSX.V: ADL East Med Licenses and Discoveries

Tel Aviv

Ashdod

Ashkelon

Herzliya

Legend

Adira Blocks

Discovery Blocks

Gas Fields

Previous wells

TSX.V: ADL

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Levant Basin Discoveries Since 2009

Discovery Size

Tamar 10 TCF

Dalit 0.5 TCF

Leviathan 16.7 TCF Possible Deep Oil

Cyprus 5+ TCF

Tanin 1.2 TCF

Dolphin 0.6 TCF

Shimshon 0.5 TCF

Total Discoveries 34.5+ TCF

TSX.V: ADL

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The Syrian Arc East Mediterranean Production

TSX.V: ADL

East Mediterranean Syrian Arc Ridge SSW NNE

Top

Zohar

(* Not Deep Enough)

Yam-2

~800 BOPD

Yam Yafo-1

~800 BOPD

P Gabriella-1 Delta-1

NDE*

P Yitzhak-1

Shemen Gabriella Yitzhak

P Gabriella - 1

Delta -1

P Yitzhak -1

Yam Yafo-1

Gabriella & Yitzhak Structures

TSX.V: ADL

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East Mediterranean Syrian Arc Ridge Southern Northern

Dip lines across Syrian Arc deformation zone

• Underexplored potential

• Additional anticlinal ridges

• Repeatable success possible

TSX.V: ADL

*Currently Israel Imports 99% of Consumption Mainly from Azerbaijan and others

Oct 22, 2012: Brent $111.55 or $26 million each day not including transportation and other fees

Israel’s Oil Importation*

Source: Ministry of Energy and Water Resources

Avg. 238,000 BOPD

TSX.V: ADL

Israel’s Oil Trend

Project Best Estimate Gross*

Yam Hadera Modiin

133 mmbo

Yitzhak Adira

79 mmbo

Gabriella Adira

110 mmbo

Shemen Shemen

270 mmbo

Samuel Adira

66 mmbo

TOTAL 658 mmbo

*Public disclosures

TSX.V: ADL

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NI 51- 101 Compliant Resource Report Netherland Sewell & Associates, Inc

Hydrocarbon Classification Best Estimate Gross

Oil Contingent (2C) (1)

Jurassic (44°- 47° API) 110.1 MMBO

Condensate

Prospective p50 (2)

Miocene 7.0 MMBO

Talme Yafe 4.7 MMBO

Gevar’Am 5.7 MMBO

Gas

Contingent (2C)

Jurassic 110.1 BCF

Prospective p50

Miocene 257.1 BCF

Talme Yafe 174.7 BCF

Gevar’Am 209.3 BCF

Gabriella

(1)Contingent Resources : Those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable because of one or more contingencies.

(2) Prospective Resources: There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.

The full report entitled “ Estimates of Unrisked Contingent and Prospective Resources to the Adira Energy Ltd. Interest in Discoveries and Prospects located in Block 387 (Gabriella) Offshore Israel “ is located on SEDAR

Notes: MMBO = Millions of Barrels of Oil, BCF = Billion Cubic Feet of Gas

TSX.V: ADL


Oil

Prospective p50 (1)

Jurassic 79.1 MMBO

Condensate

Prospective p50

Gevar’Am 12.4 MMBO

Talme Yafe 13.2 MMBO

Gas

Prospective p50

Talme Yafe 486.7 BCF

Gevar’Am 457.4 BCF

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Yitzhak


(1)Prospective Resources: There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.

The full report entitled “Estimates of Unrisked Prospective Resources to the Adira Energy Ltd. Interest in Certain Prospective Reservoirs located in Block 380 (Yitzhak) Offshore Israel “ is located on SEDAR

TSX.V: ADL

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Samuel

(1)Prospective Resources: There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.

The full report entitled “Estimates of Unrisked Prospective Resources to the Adira Energy Ltd. Interest in Certain Oil Prospects located in Block 388 (SAMUEL) Offshore Israel “ is located on SEDAR


Oil

Prospective p50 (1)

Talme Yafe 32.6 MMBO

Upper Jurassic Reef 31.1 MMBO

Upper Jurassic Structural 0.63 MMBO

Barnea Formation – Jurassic Structural 1.50 MMBO

Gas

Prospective p50

Talme Yafe 32.6 BCF

Upper Jurassic Reef 31.1 BCF

Upper Jurassic Structural 0.63 BCF

Barnea Formation – Jurassic Structural 1.50 BCF


TSX.V: ADL

Target: Oil Jurassic fractured carbonates

Target: Gas Cretaceous limestone and sands

Miocene stratigraphic

Target: Condensate Cretaceous limestone and sands

Miocene stratigraphic

Exploration: 587 Km2 Dual Azimuth 3D completed Jan 2011 by Adira

(WesternGeco), Processing completed by CGG Veritas

Prior Drilling: Yam Yafo-1 Well: Drilled in 90’s to 5,823m tested 800 bopd (440 API)

Drilling: Shallow water 127 to 220 meters. Floater

Operator: Adira 15% WI plus 15% back-in option from Modi’in Energy at

cost, plus ~10% ORRI and management fees, combined

Partners: Brownstone Energy 15%, Modi’in Energy 70%

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Gabriella Structure- Depth

Gabriella License (96,371 Acres)

3D seismic survey

COMPLETE

Processing & interpretation

COMPLETE

Resource Report

COMPLETE

Procurement of long lead items and rig

contract

IN PROGRESS

Spud well

Q4/12- Q3/13

2C (Best Estimate) Contingent Oil (Jurassic): 110.1 MMBO

Yam Yafo-1

P-Gabriella 1

TSX.V: ADL

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Faults and Fracture Orientation at Jurassic Target Horizons

Gabriella Structure

TSX.V: ADL

Target: Oil Mid Jurassic , Zohar- Fractured Carbonates

Target: Gas Cretaceous Talme Yafe carbonates and sands

Target: Condensate Cretaceous Talme Yafe carbonates and sands

Exploration: 129 Km2 3D completed by Adira (WesternGeco), processing

completed by CGG Veritas

Prior Drilling: Delta-1 Well drilled (off structure) in 1970’s to 4,423m,TD in

Upper Jurassic. Oil encountered in Mid Jurassic (Yam

Yaffo1 and Yam 2- Gabriella/Shemen) Zohar formation tested

for oil in Yam Yafo-1 (4,890m – 4,995m) and Yam-2 Well

(5,315m) interesting & significant structural high

Drilling: Shallow water 93 to167 meters. Floater

Co-Operator: Adira 60% WI, up to 4.5% ORRI from AGR & Ellomay

Partners: Brownstone Energy 15%, AGR 5%, Ellomay 20%

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p50 (Best Estimate) Prospective Oil (Jurassic): 79.1 MMBO

Yitzhak Structure- Depth

Yitzhak License (31,689 Acres)

3D seismic survey

COMPLETE


COMPLETE

Resource Report

COMPLETE


contract

IN PROGRESS

Spud well

Q4/12- Q3/13

TSX.V: ADL

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p50 (Best Estimate) Prospective Oil (Jurassic): 65.8 MMBO

Samuel License (89,205 Acres)

3D seismic survey

COMPLETE


COMPLETE

Resource Report

COMPLETE


contract

IN PROGRESS

Spud well

Q2/13

Target: Oil Lower Cretaceous Carbonates at 2,850m

Target: Gas Plio/Pleistocene, Oligo/Miocene, Turbidites, Canyon Filled

Sands: 2,000m

Exploration: 122 Km2 3D OBC (ARIS Nefterazvedka)

Processing: IOX-CXT

Prior Drilling: Yam-2 Well immediately west tested oil in Jurassic, Ashdod

oil field in Jurassic, Heletz oil field in Lower Cretaceous of

Jurassic

Drilling: Shallow water 27 to 34 meters

Operator: Adira GeoGlobal (Adira Lead) 41.25% WI

Partners: Brownstone Energy 6.75%, Pinetree Capital 10%,

GeoGlobal Resources 42%

Samuel Structure- Depth

TSX.V: ADL

Adira License Summary

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License Best

Estimate

Adira

WI Partners Other Terms Spud Date

Est. Dry

Hole Costs

(100%)

Gabriella 110.1 MMBO

(Contingent)

15% Modiin Energy 70%

Brownstone Energy

15%

Options to purchase

15% from Modiin, at

cost, post discovery

~10% ORRI and

management fees

Q2 2013 $96m

Samuel 65.8 MMBO

(Prospective)

41.25% Geoglobal Resources

Inc 42%

Brownstone Energy

6.25%

Pinetree Capital 10%

1.5% ORRI from

partners other than

GGR

Q2 2013 $45m

Yitzhak 79.1 MMBO

(Prospective)

60% Brownstone Energy

15%

AGR 5%

Ellomay 20%

Up to 4.5% ORRI

from AGR & Ellomay

Q3 2013 $96m

TSX.V: ADL

The Oil Potential

• Oil is the Next Resource Headline for Israel

– Market immediately available

• Upside Potential Along Trend

• Government Supportive

– Security of supply

– Daily importation approximately $25 million/day

• Funds going to other countries

– Internal production reduces dependency and costs

– State additionally benefits through tax and royalty to producers

• Risks Minimized

– Projects are not technically challenging and close to shore

– Much of the internal infrastructure already in place

• Pipelines and refining capacity

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TSX.V: ADL

22

Capital Structure, August 20, 2012

Shares Issued & Outstanding 180.8M

Warrants 97.4M

ESOP 18.0 M

Fully Diluted Shares 292.2M

Financings to Date Proceeds

Sept 2009 8.0m units at $0.25 (half warrant at $0.50 expired) $2.5M USD

Nov 2010 27.5m units at $0.40 (half warrant at $0.55)

Warrants expire December 2013 $11M USD

Feb 2011 10.5m shares at $0.62 $6.5M CAN

Aug 2012 79m units at $0.14 (full warrant at $0.20)

Warrants expire August 2015 $11.1M CAN

Adira Energy TSX.V: ADL (OCTBB, US: ADENF, Frankfurt: AORLB8)

Holdings

Management + Board 30%

Institutional 40%

Retail 30%

Analyst Coverage

Cormark Securities

Clarus Securities

GMP Securities

TSX.V: ADL

Appendices

23

TSX.V: ADL

Capitalizing on Undiscovered Potential: Levant Basin

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TSX.V: ADL

Brownstone Energy Inc (Formerly Brownstone Ventures) (Gabriella, Yitzhak, Samuel)

A Canadian-based, TSX-V listed, energy-focused company with direct interests in oil and gas assets around the world. Brownstone has

the right, subject to certain conditions, to earn a 15% Working Interest in Adira’s offshore blocks for three years.

Pinetree Capital Ltd (Samuel)

A Canadian-based, TSX listed diversified investment, financial advisory and merchant banking firm focused on investing in early stage

resource companies. 10% Working Interest in the Samuel block.

GeoGlobal Resources Inc (Samuel)

AMEX listed, Canadian- based resource and operating company engaged in the exploration and development of petroleum and natural

gas reserves internationally. 42% Working Interest in the Samuel block.

Ellomay Oil and Gas 2011 LP (Yitzhak)

Israeli public company whose shares are listed on the NYSE Amex stock exchange, which focuses its business in the energy and

infrastructure sectors worldwide. Assets include ten photovoltaic plants in Italy with an aggregated capacity of approximately 11 MW

and holdings in Dorad, Israel's largest private power plant. 20% Working Interest in the Yitzhak block

AGR Group ASA (Yitzhak)

Headquartered in Norway with operations and offices in Europe, Middle East, Commonwealth of Independent States (Russia,

Azerbaijan and Kazakhstan), Asia Pacific and Americas, is a leading provider of essential services and technologies to the international

petroleum industry. AGR operates in the areas of construction and managing of drilling programs, exploration, development, production

and project maintenance. 5% Working Interest in the Yitzhak block

Modi’in Energy Limited Partnership (Gabriella)

Tel Aviv- based oil and gas investment group. farmed-in 70% interest in the Gabriella License. Adira has a back-in option from Modi’in

of 15% of the Modi’in working interest at cost, for a period of six months after a discovery.

Adira operating royalty from Modi’in of 4.25%

Combined (ORRI ) royalty of 4.5%, increases to 10.5% after cost recover

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License Partners

TSX.V: ADL

26

Joe Oliver, Canadian Minister of Natural Resources Uzi Landau, Israeli Minister of Energy and Water Resources

Minister Visit, Israel Office

June 2012 August 2012

TSX.V: ADL

Corporate Office:

Canada

120 Adelaide Street West, Suite 1204

Toronto, Ontario

M5H 1T1

Israel Office:

12 Abba Hillel Silver, 12th Floor

Ramat Gan, 52506

Canada:

Alan Friedman

Exec. Vice President, Corporate Development

+1 416 250 1955

Julia Maxwell

Manager, Investor Relations

[email protected]

+1 416 361 2211

Israel:

Gadi Levin

Chief Financial Officer

+972 (0) 3 373 0166

www.adiraenergy.com

[email protected]

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Contact Information

http://www.adiraenergy.com/

corporate presentation - tmxmoneythe colorado school of mines in golden, colo. he is a member of...

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