SARGENT RANCH UPDATE!ASX Announcement | 30 JULY 2014

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Titan Energy Ltd (ASX: TTE) (Titan or the Company) is pleased to provide an update on its Sargent

Ranch Project in Texas.

KEY PERMIT HIGHLIGHTS

! Poole-3 operations commenced July 29 (US Time) ! Unique low cost option to return well to commercial production ! Significant assessed Contingent Resources of oil & natural gas

As of 07:00 Hrs on July 29 (US Time), operations commenced on the Poole-3 well with the re-entry

procedure anticipated to take a total of 5 days. Upon successful test results, the Joint Venture will then proceed with reinstating the existing gas systems and arranging the necessary agreements

required to establish commercial production.

Project Operator, Arcadia Operating Company LLC has recently appointed a highly experienced

Operations Manager to oversee the re-entry procedure. The Baker Hughes Coiled Tubing Unit will follow a specialised workover programme, performing a sand cleanout and conditioning of the wellbore, before running a gravel pack completion assembly.

In April 2014, Titan reached an agreement with Magnolia Petroleum Company (Formerly Magnolia Energy LLC) to swap 50% of its interest in the Sargent Ranch project, for 50% of their interest in the existing infrastructure. Magnolia Petroleum Company’s participation in the project brings with it

production equipment which will assist in commercialising the project following a successful workover. The companies have now finalised the Joint Operating and Participating Agreements in preparation to bring the Poole-3 well back to commercial production.

Titan has since sold 12.5% of its Working Interest (WI) for a cash payment of $125,000. Titan’s 37.5% share of the Pool #3 re-entry AFE is US$168,750.

Titan holds a 37.5% non-operating W.I on the 337 acre Sargent Ranch, located in Brazoria/Matagorda County approximately 5km west of Allen Dome. The Company completed the lease acquisition of the Sargent Ranch Oil and Gas field in 2013, which contains two shut-in wells

previously drilled by Esenjay Petroleum and Santos Ltd in 2002 and 2003 respectively. Titan identified the potential of the Sargent Ranch field as a low cost investment and has been working towards bringing the Poole-3 back to production.

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ABN 53 109 213 470 Postal Address PO Box 198 West Perth 6872 Western Australia

www.titanenergy.com.au !

SARGENT RANCH CONTINGENT RESOURCES | NET TO TITAN

Net Contingent Resources

Asset Interest Unit Net Contingent Resources Evaluator

(Evaluation Date)

Estimation Method

1C 2C 3C Texas

Sargent Ranch (Poole Wells)

37.5% MMbbl (Oil) 0.069 0.095 0.180

ERC LLC (2014)

Deterministic

Sargent Ranch (Poole Wells)

37.5% MMboe (Oil Equivalent) 0.356 0.491 0.705

ERC LLC (2014)

Deterministic

Coiled Tubing Unit rigging up for re-entry of the Poole-3 well at Sargent Ranch.

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ABN 53 109 213 470 Postal Address PO Box 198 West Perth 6872 Western Australia

www.titanenergy.com.au !

For further information please contact:!

Darren Levy Chairman T: +61 8 9322 6955 M: +61 418 558 485 E: info@titanenergy.com.au

John McKnight Titan Energy Inc 5120 Woodway Drive, Suite 9020 Houston, Texas 77056 M: +1-832-236-7053 E: jmcknight@titanenergy.com.au

Qualified Petroleum Reserves and Resources Evaluators.

Information in this announcement pertaining to Petroleum Reserves, and Resource Evaluations has been disclosed in announcements previously released on the 7 July 2014, titled “Titan Energy USA Update”. The Company is not aware of any new information or data that materially affects the information included in previous announcements, and that all the material assumptions and technical parameters underpinning the estimates in the previous announcements continue to apply and have not materially changed. Energy Recovery Concepts LLC has provided independent evaluations of hydrocarbon reserves and or resources through discussions with Management and Field Engineers of Titan. Mr Richard Pomrenke, Manager of ERC has consented to the inclusion of the information in the form and context in which it appears.

Mr Pomrenke is a petroleum engineer with 48 years experience in the upstream oil & gas industry. His experience includes work with Pan American Petroleum, Amoco International, Occidental of Libya, MCO Resources, BHP Billiton, Regent Oil & Gas, and BP Amoco. He has extensive experience with mature oil, gas and gas-condensate developments particularly in salt dome environments. Mr Pomrenke is a member of the Society of Petroleum Engineers and has also specialized in innovative well completions. He is also skilled in reservoir and resource evaluation, field development planning and integrated project reviews.