Producing Reserves – Revolutionary Technology – Scalable Opportunities

Highlands Natural Resources

Corporate Update April 2018

Disclaimer

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recipient.

In addition, this presentation includes forward-looking statements that reflect the Company’s current views with respect to future events and

financial performance. These views are based on a number of assumptions and are subject to various risks. Such forward-looking

statements are not guarantees of future performances and no assurance can be given that any future events will occur, that any projections

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the Company does not undertake to revise any such forward-looking statements to reflect future events or circumstances.

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2

Portfolio Summary

3

Risk

Pote

nti

al R

etu

rn

Helios Two Montana Natural Gas and Helium Prospect

Advancing a diversified portfolio of high-potential projects

East Denver Niobrara

Shale Oil & Gas

Wells

Cash flow from East Denver supports development of upside opportunities

Highlands Corporate Update

EAST DENVER PROJECT

Overview: East Denver Niobrara Shale

(1) Map generated by Highlands Natural Resources with data from the Colorado Oil and Gas Conservation Commission

(2) Radius reflects expected 6-month production based on type curves in RPS Knowledge Reservoir Competent Persons Report dated 6 January, 2017

(3) As of March 31, 2018

6 Month Oil Prod

100,000 Bbl

50,000 Bbl

25,000 Bbl

Conoco

HNR Farm In

HNR Wells2

• Delivering production and cash flow▪ First two horizontal wells completed in October 2017

▪ Pad-based operations

▪ “Zipper-frack” completion technique

▪ 2 mile horizontal wells, 110 total stages of fracking

• Cumulative production ~190k Boe3

▪ Continuous production ongoing

▪ Light sweet crude: net pricing ~$65/Bbl

▪ Natural Gas Liquids: net pricing ~$0.70/Gal

• Access to local energy services and

infrastructure▪ 25 miles east of major industry hub Denver, CO

▪ Oil transit time to refinery < 30 minutes

▪ Gas pipeline agreement finalized

5

Acreage

East Denver Progress Update

6

Gas Purchase Agreement: monetisation of natural gas and associated liquids from the project

represents a further revenue opportunity for Highlands, adding upside potential to the assets

▪ Gas purchase agreement executed with a nearby pipeline operator

▪ First gas sales expected in H2 2018

▪ Allows Highlands to produce oil and gas continuously on current and future wells

On-going Strategy

▪ Paves the way to conclude advanced financing negotiations

▪ Highlands has received numerous term sheets from credible financing counterparties including

investment funds, service companies and established shale operators

▪ Up to 22 additional drilling locations are available on established Drilling and Spacing Units (DSU)

▪ Plan is to drill at least six additional wells on the northern DSU before proceeding to southern wells

▪ Highlands has installed conductor casing for the next six wells on the northern DSU

▪ Remaining in compliance with 16 December 2016 Farm-In Agreement operational timelines

The Wildhorse and Powell rank among the best horizontal Niobrara wells in the State of Colorado

• 5-month cumulative oil production ranks in top 3% of all horizontal Niobrara wells in Colorado1

• Efficient pad-based operations and zipper frack techniques combined with cutting edge well designs

• Producing with minimal downtime since flowback commenced in fourth quarter of 2017

• Successful operations prove Highlands’ capabilities in drilling, completions and facilities design

(1) Based on Highlands’ data and Colorado Oil and Gas Conservation Commission data as of 31 March, 2018

50,000

100,000

150,000

200,000

Oil

and

Eq

uiv

ale

nts

(B

bl)

Oil and Liquids Barrels of Oil Equivalent

(1) Approximate as of 31 March 2018, March revenues estimated based on production volume

Combined figures from Powell and Wildhorse Wells

190,000+ cumulative barrels of oil equivalent

230,000+ cumulative gallons of NGL

US$3.8 million cumulative net revenue so far to Highlands1

7

East Denver Cumulative Well Performance1

WILDHORSE 10/1/2017 9,696

POWELL 10/1/2017 9,845

BISON 4-64 15-16 1/1/2017 8,671

PROSPER FARMS 4-65 4/30/2015 14,394

PROSPER FARMS 4-65 4/8/2015 11,938

SKY RANCH 4-65 9-10 3/9/2015 9,520

PROPERTY RESERVE 4 3/9/2015 8,427

STATE ELBERT 1/12/2015 7,601

GRIMM MOTOCROSS 4-6 12/2/2014 8,384

SUNSET 4-65 21-22 12/2/2014 10,441

STATE MASSIVE 12/1/2014 10,625

RESERVE 3-65 34-35 10/27/2014 9,775

STATE HARVARD 10/14/2014 11,875

STATE BLANCA 10/14/2014 10,183

RESERVE 3-65 26 10/5/2014 11,397

WATKINS 9/17/2014 7,191

WATKINS 9/17/2014 10,675

TEBO 29 8/7/2014 10,840

COTTONWOOD CREEK 4 6/29/2014 10,667

TEBO 4 5/11/2014 14,399

MURPHY FAMILY 4-64 4/20/2014 5,609

BOMHOFF 4/15/2014 13,309

WALKER 12 2/14/2014 4,637

CLINE 4-64 2 1/30/2014 6,193

YOUNGBERG 10-11 12/28/2013 3,034

WATKINS 12/8/2013 11,023

TEBO 32 12/3/2013 4,314

CONVERSE FAMILY 6 10/12/2013 2,937

ZUKOWSKI 17 9/29/2013 11,012

KROUT 14 9/16/2013 2,473

TEBO 33 9/8/2013 10,626

MURPHY FAMILY 4-64 8/17/2013 2,781

TEBO 1 6/1/2013 1,299

STATE OF COLORADO 3 5/24/2013 2,210

TEBO 3 5/3/2013 2,534

WEP 3/6/2013 2,674

GRIMM 34 1/27/2013 2,430

TEBO 29 12/5/2012 5,449

STATE OF CO 11/29/2011 2,766

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000

Evolution and Impact of Horizontal Well TechnologiesChronology of Lowry-Bombing Well Range 1

8

HNR Wells Projection2 :~10,000 bbl/thousand feet

First Generation Technology

Second Generation Technology

(1) Generated by Highlands Natural Resources with data from the Colorado Oil and Gas Conservation Commission

(2) RPS Knowledge Reservoir Competent Persons Report dated 6 January, 2017

(3) Dashed lines represent extended horizontal wells

Well Name Comp Date Cumulative 6 Mo Oil Production (Bbl per 1,000 feet of horizontal wellbore)

A Scalable Opportunity Due to Capital Deficit in DJ Basin

9

DJ Basin Niobrara Map By Sub-Field (Red = Prospective1)

(1) Red color indicates Niobrara resistivity above 50 Ohms, a key indicator of prospectivity for the Niobrara formation

(2) Approximate acreage count within the DJ Basin sub-fields outlined on the map

(3) Assumes 160 acres per well, equivalent to 8 wells per 1,280 acre DSU or 4 wells per 640 acre DSU

(4) Based on public data from IHS and COGCC

(5) Assumes $5 million average AFE per well

(6) Combined publicly disclosed 2018 DJ Basin capital budgets of NBL, APC, PDC, XOG, WLL, SRCI and EOG. NBL’s capital budget for the basin is annualized based on Q4 2017 budget.

Illustrative infill drilling opportunity

Existing development (wells and permits)

• Available well locations in DJ Basin2,3,4: ~9,600

• Capex for full development5: ~ US$48 billion

• 2018 budget of top operators6: ~US$3.6 billion

• HNR has demonstrated the ability to execute

creative development concepts with larger

operators to secure drilling opportunities

• In exchange for economic incentives and drilling

commitments, HNR can secure additional acreage

offering win-win economics for HNR and partners

Lowry Bombing

Range

Wattenberg

WattenbergExtension

Silo

Fairway

Hereford

Denver

Building Long-Term Relationships

10

Highlands works to create value with a group of industry-leading firms

Ea

st

De

nve

r P

roje

ct

Fin

an

ce

Ad

vis

ors

Te

ch

no

log

y

Raisa is a vehicle of EnCap Investments L.P. which has invested US$19.7 Bn in 240 energy companies to date

Private Operator

in

Piceance

(vertical wells)

Private Operator

in

Permian

(horizontal wells)

DT Ultravert

Parent

Wells

Impaired

Child Wells

Completed

Without

DTU

12

Enhanced

Child Wells

Completed

With DTU

Ph

as

e 1

Ph

as

e 2

DTU

Deployed

Site Development Overview Performance Comparison

DTU achieved an average

15% production increase

compared to child wells

completed without DTU

Child with DTU

Parent well1

Child without DTU1

(1) Averaged across dataset to maintain host operator’s confidentiality

Successful DT Ultravert Deployment: Horizontal Permian Wells

Days On Production

Pro

du

ctio

n (

Bb

l)

XX

XX

XX

XX

X

Market Demand for a Solution to Well Bashing

• In August 2017, a federal jury ruled

in favor of two Oklahoma operators

• Victims of well bashing

• Bashed parent well was an aging

vertical with moderate production

• Damages of US$220,000 awarded

• Bashing ruled as:

“Subsurface Trespass”

and

“Creating Private Nuisance”

• Precedent set by the Oklahoma case:▪ May extend to tens of thousands of

wellbores located nearby permits

▪ Legitimizes claims from potentially

thousands of existing victims of bashing

13

DT Ultravert Marketing Update

• Highlands attended North American

Petroleum Exposition (NAPE) in February

as a prominent sponsor

• DT Ultravert, a technology demonstrated to

mitigate against well bashing, introduced to

broader industry through hundreds of in-

person conversations

• Highlands has 4 allowed and numerous

additional pending patents for DTU

technology

• Discussions centered on past deployments

of DT Ultravert in horizontal and vertical

wells in the Permian and Piceance Basins

• Highlands positioned for potential U.S

investors and strategic partners as an

emerging opportunity with core production

and unique shale technology

14

Helios 2

Helios 2 Overview

(1) Map generated by Highlands Natural Resources with data from the Colorado Oil and Gas Conservation Commission

(2) RPS Knowledge Reservoir Competent Persons Report dated 6 January, 2017

(3) Zedi Solutions Sample Analysis Report dated 25 January 2017

Locator Map with Nearby Production1

• P50 NPV10 of U.S.$ 341 million2

• 221,973 acres leased in Montana

• Multi-stage evaluation and

commercialization process

▪ Helios 5-52 16-22 stimulated with water

and foam-based stimulation deployed

into three stages

▪ Two stages opened for production

testing and data gathering on Dec 5th

▪ Gas production peaked at 216 Mcfpd

▪ Stage #3 currently undergoing clay

hydration treatment to potentially

generate significant permeability

• Confirmed helium presence of

0.31% to 0.33%3

HNR acreage

Oil wells Natural gas wells

16

Dry well

HNR Helios 2 Operations

Helios 2 Location

17

Gas Flaring from Helios Well 5-52 16-22

Helios Two Location Overview

Night Operations at Helios Two

Corporate Overview

(1) P50 NPV 10 from RPS Knowledge Reservoir Competent Persons Report dated 6 January 2017(2) Unrisked NPV 10 of from RPS Knowledge Reservoir Competent Persons Report dated 6 January 2017(3) NPV10 from RPS Knowledge Reservoir Independent Opinion Report dated 6 January 2017

DT Ultravert3

• 4 US patents allowed,

additional pending

• Fed. court judgment

• Successful deployment

• Calfrac license

• NPV10: US$78-$135M

Helios Two2

• Commercial testing

• Methane and helium

discovery

• 221,973 acres leased

• NPV10: US$341M

East Denver Project1

• ~190K Boe cumulative

• Up to 22 more wells

• Midstream agreement

• Advanced financing

negotiations

• NPV10: up to US$125M

Leveraging significant 3rd party funding to advance key projects

18

Exposing shareholders to a diverse portfolio of high potential resource projects

Highlands Natural Resources Rober t Pr ice

Pres ident & CEO

+1 (0 ) 303 322 1066

rober t .p r i ce@high landsnr.com

El isabeth Cowel l

R e d l e a f C o m m u n i c a t i o n s

e c @ r e d l e a f p r . c o m

Contacts

N i c h o l a s Tu l l o c h

C a n t o r F i t z g e r a l d

N i c k . Tu l l o c h @ c a n t o r . c o . u k

D a v i d P o r t e r

C a n t o r F i t z g e r a l d

d p o r t e r @ c a n t o r . c o . u k