Calima Energy : Inaugural ESG Report

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ASX: CE1

OTCQB: CLMEF

Inaugural ESG Report

Message to	About	Materiality &	Environment	Social	Governance	Performance	Advisories
Stakeholders	Calima	Scope	Data Tables

TABLE OF CONTENTS

onlyMessage to Stakeholders

About Calima

Calima - Oil & Gas Producer

Corporate Snapshot

Canada - A World Leader in Oil & Gas ESG

ESG Materiality & Scope Assessment

Climate Risk Considerations

Environment

GHG Emissions

use	Overview
Performance
Stationary Fuel Combustion
Flaring, Venting and Fugitive Emissions
Emissions Reduction Opportunities
Case Study - H2Sweet
	Case Study - Bantry Truck Displacement
Asset Retirement Obligations
	Overview
	Abandonment Programs
	Spill Prevention & Reporting
	Overview
Calima Energy	2021 Sustainability Report
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Social
Safe Operations	22
Safety is at the Heart of Calima	23
Community & Stakeholders
Farmers & Landowners	24
Indigenous Partnerships	25
Economic Contributions	26
Community Involvement	27
Governance
Board of Directors	28
ESG Committee, Policies, ESTMA	29
Disclaimers	30

ASX: CE1 | 2

Message to	About	Materiality &	Environment	Social	Governance	Performance	Advisories
Stakeholders	Calima	Scope	Data Tables

only"gas producer in central and southern Alberta with production exceeding 3,000 boe/d. Recent development activities have yielded pr duction volumes greater than 4,000 boe/d. This tremendous growth in the business has elevated the Company's potential impacts, but also our potential opportunities, for environmental performance.

MESSAGE TO STAKEHOLDERS

Calima Energy Ltd. ("Calima" or the "Company") is pleased to present the Company's inaugural environmental, social, governance (ESG) report for the year ended December 31, 2021.

2021 was a transformational year for the Company. When Calima acquired Blackspur Oil Corp. during the second quarter of 2021, the organization immediately transformed from an early stages B.C. Montney exploration company, to an active oil and natural

As we engage with our stakeholders, we are continually reminded of the societal demands of being a good corporate citizen and usethe importance operating as an environmentally responsible energy producer. We continue to seek feedback from our

stak holders, recognizing that adherence to a strong ESG program is critical to delivering consistent long-term shareholder value from our Company.

We are fortunate as an organization to operate in one of strongest oil and natural gas regulatory environments in the world. The high benchmarks set by our Canadian regulators hold oil and natural gas operators to a high standard of care and promotes responsible development. Calima's objective is always to meet or exceed all standards laid out by our regulators.

As we move forward with the development of our Canadian oil and gas assets, we recognize that we must hold ourselves accountable for the impacts that our operations have on our stakeholders. Calima believes that all actions taken to create value

	"
for our shareholders must align with the needs of all stakeholders, including our environment, our communities, our service
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providers, our governments, our capital providers, our business partners and our employees.

C lima is committed to a number of ESG initiatives aimed at reducing GHG emissions, reclaiming inactive well sites and reducing our impact to the environment. We are committed to operating safely, being a good neighbour, and a being a good corporate citizen. We are committed to establishing and maintaining strong corporate governance practices that will lead the organization to a lo g-term sustainable future.

Thank you for your continued support.

Calima Energy

2021 Sustainability Report

"All actions taken to create value for our shareholders must align with the needs of all stakeholders, including our environment, our communities, our service providers, our governments, our capital providers, our business partners and our employees"

Jordan Kevol

President & CEO

Calima Energy Ltd.

ASX: CE1 | 3

Message to	About	Materiality &	Environment	Social	Governance	Performance	Advisories
Stakeholders	Calima	Scope	Data Tables

CALIMA - OIL & GAS PRODUCER

• Conventional oil & gas producer focused on generating free cash flow from the responsible development of high-quality assets in Western Canada

• At US$100 WTI, high netback production drives

	significant operating profit
•onlyStable, low decline base production from Brooks and
	Thorsby offering significant development opportunities
	for growth
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•	Acc ss to global LNG markets supports future upside
	from Montney development in northeast British
	Columbia at Tommy Lakes

• Ample field processing and hydrocarbon handling infrastructure capable of supporting the Company's field development plan in the near term

• Robust balance sheet with net debt of approximately ersonalA$3 million and a view to free cash flow in 2022, both of

which contribute to financial flexibility for continued sset development

*Operations headquarters located in Calgary, Alberta. Corporate headquarters are located in Perth, Australia

Calima Energy	2021 Sustainability Report	ASX: CE1 | 4

Message to	About	Materiality &	Environment	Social	Governance	Performance	Advisories
Stakeholders	Calima	Scope	Data Tables

CALIMA IS A RETURNS & GROWTH-FOCUSED ENERGY PRODUCER

	with top tier assets, positive cash flow and is ESG goal orientated						5
only			CORPORATE GUIDANCE for the 9-month ending 30 Sept 2022
		WTI US$/bbl	$85	$95	$105
5.1	BROOKS & THORSBY	Average production (boe/d)	4,100	- 4,400	4,100	- 4,400	4,100	- 4,400
PROVED, DEVELOPED	Revenue (A$ million)	90 - 96	97 - 103	103	- 111
mmboe	PRODUCING RESERVES	Operating netback (A$ million)	55	- 60	61	- 66	66	- 72
		Adjusted EBITDA (A$ million)	52	- 56	57	- 62	63	- 68
			Funds flow (A$ million) (net of hedges/before capex)	39	- 44	41	- 46	44	- 50

use	24.4	BROOKS &
THORSBY			DE-RISKED ASSET BASE	GLOBAL ACCESS TO CAPITAL
	mmboe	TOTAL PROVED + PROBABLE			Brooks & Thorsby areas developed	International exposure with Canadian
	(62% Oil)	+ POSSIBLE RESERVES			since 2014 with 60 booked locations	and Australian presence
					ROBUST OPERATING NETBACKS	FREE CASH FLOW
	160.5				Low breakeven and production costs with	GENERATION
	MONTNEY			high torque to commodity prices	Starting in '22 based on capital allocation
				flexibility and increased base production
	2C CONTINGENT			SKILLED EXECUTIVE TEAM	MONTNEY LIQUIDS RICH GAS
		mmboe	RESOURCE			Management brings track record of	Development ready project at Tommy
					Western Canadian asset development	Lakes with capacity >10,000 boe/d
		(78% Gas)
1 Q2/Q3 2022 forecasted production is based on current PDP production, plus production from drilling 2 Sunburst and 2 Glauconitic wells. EBITDA is based on -US$13.50 WCS differential, 1.25 CAD/USD FX rate, 0.91 AUD / CAD fx rate, $5.00/gj AECO, average
royalty rates of 19% and operating costs and G&A assumptions based off historical financial statements.
Calima Energy	2021 Sustainability Report				ASX: CE1 | 5
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