Infinity Energy : Final Results for the 12 months ended 31 December 2015

640a9767-379a-47b0-93da-7f8bc31d33f3.pdf Infinity Energy S.A.

("Infinity Energy" or the "Company")

Final Results for the 12 months ended 31 December 2015

The Directors of Infinity Energy are pleased to announce the audited results of the Company for the year ended 31 December 2015.

The audited annual accounts for the year ended 31 December 2015 will shortly be sent to shareholders and will also be available on the Company's website at http://www.infinityenergy.eu.

For further information, please contact:

Infinity Energy S.A.

Gerwyn Williams Tel: [phone]

Bruce Vandenberg Tel: [phone]

Nomad

Cairn Financial Advisers LLP Sandy Jamieson

James Caithie

Tel: [phone]

Broker

WH Ireland Limited

Paul Shackleton / Nick Prowting Tel: [phone]

CHAIRMAN'S STATEMENT

Infinity Energy became an Investing Company under the AIM Rules on 17 February 2012. On 18 March 2014, shareholders approved the new investing policy which is to make investments and acquisitions, either through the issues of securities or for cash, in quoted and non-quoted companies and their securities, in the commodities sector with an emphasis on oil and gas service sectors. Such investments include the provision of financing by way of farm-ins, earn-ins, loans, equity or other forms of financing and investments in and to companies in these sectors.

John Killer 1 June 2016

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DIRECTORS' REPORT ON THE FINANCIAL STATEMENTS

The Directors are pleased to submit their annual management report and financial statements for the year ended 31 December 2015.

For the purpose of filing with AIM, financial statements have been prepared and presented using International Financial Reporting Standards ('IFRS') as adopted by the European Union. The Company has elected, as allowed under Luxembourg law, to produce financial statements using IFRS only and these are available at the registered office and the Trade Registrar in Luxembourg.

Principal activity

The principal activity of the Company during the year under review was to make investments and acquisitions, either through the issues of securities or for cash, in quoted and non- quoted companies and their securities, in the commodities sector with an emphasis on oil and gas and oil and gas service sectors. Such investments include the provision of financing by way of farm-ins, earn-ins, loans, equity or other forms of financing and investments in and to companies in these sectors.

Investing Policy

The Board notes the UK government's policy for self sufficiency in energy and that it is looking increasingly to shale gas to displace imported gas. The Board is firmly of the view that tremendous opportunities exist in this area and consequently intends focusing the bulk of its investing activities in on-shore UK oil and gas opportunities. Target investments will include a variety of investing and acquisition activities in private companies which hold interests in petroleum exploration development licences ("PEDLS"). The Company will seek to co-invest with such companies in exchange for an economic interest. As noted above, such co-investments include the provision of financing by way of farm-ins, earn-ins, loans, equity and other forms of financing and investments. As it is highly likely that UK gas prices will reduce if large scale onshore gas production is successful, the Company will also consider investments in associated infrastructure that may include electrical generation from gas. Electricity prices are expected to rise due to a shortage of generating capacity in the UK caused by high emission stations closing in 2015. As new nuclear stations will take time to bring online, a viable short term solution would be modular gas fired generating stations that can be built quickly. Investments in such infrastructure will support the investment strategy as, in the face of falling gas prices, onshore producers are likely to be in a competitive position vis a vis imports and offshore gas producers.

The Board expects that such investments might typically represent in excess of 80% of the Company's portfolio at times and in certain circumstances may be represented by a single investment. The Board recognises the inherent risks of such investments but believes that these offer Shareholders significant upside potential.

In order to offset some of the risk as well as to provide the Company with access to working capital, the Board intends investing part of its portfolio in large, stable diversified quoted oil and gas and commodities companies. Shareholders should be aware however, that such investments may only represent a small portion of the Company's portfolio at any point in time.

It is expected that returns to Shareholders would be initially in the form of capital appreciation but the Directors will consider the payment of dividends if and when the Company has sufficient cash resources and distributable reserves.

Review of business

The Company is an Investing Company as defined by AIM Rules.

On 1 June 2015 in accordance with Article 100 of the Luxembourg Companies Law, the Shareholders of the Company resolved that it will continue to provide financial support to the Company following the notification from the Board of Directors that the Company had lost half of the corporate capital as at 31 December 2014. It was resolved by the Shareholders that the Company will not be put into dissolution.

During the period, the Company was extended a loan facility of GBP (£) 300,000 by Gerwyn Llewellyn Williams a Director/Shareholder of the Company. The terms of this loan and the basis on which it has been advanced are disclosed in the notes to these financial statements.

The Company temporarily suspended trading on AIM on 15 October 2015 as it had entered discussions about the possible acquisition of 50% interests in 9 UK PEDL licences located in South Wales which were owned by Eden Energy Limited, a company domiciled in Australia. The proposed transaction potentially would have resulted in a reverse takeover under AIM rules; as a consequence, trading in the Company's ordinary shares was suspended pending the publication of an admission document by the Company or an announcement that the proposed transaction was not proceeding. On 22 December 2015, the Company announced that discussions with Eden Energy Limited had been terminated. Trading of the Company's shares resumed on AIM on 22 December 2015.

Total operating costs for the period amounted to GBP (£) 191,910 (2014: GBP (£) 162,781). The Group losses for the year were GBP (£) 189,058 (2014 loss: GBP (£) 160,062).

Post Balance Sheet events

On 22 February 2016, Gerwyn Llewellyn Williams, a Director/Shareholder of the Company, increased the level of the loan facility afforded to the Company from GBP (£) 300,000 to GBP (£) 400,000. The terms of the revised loan and the basis on which it has been advanced are disclosed on the notes to these financial statements.

STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 December 2015 (Expressed in GBP (£))	2015	2014
Notes	GBP (£)	GBP (£)
Income Interest	5	5,218	5,236
Total Net Income	5,218	5,236
Expenses
Directors Remuneration	6	(43,000)	(36,000)
Administrative expenses	7	(129,360)	(115,901)
Interest and financial charges	8	(19,550)	(10,880)
Total Operating Expenses	(191,910)	(162,781)
Loss before taxation	(186,692)	(157,545)
Income tax	9	(2,366)	(2,517)
Total comprehensive loss	(189,058)	(160,062)

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Basic loss per share 10 (0.0005) (0.0005) The accompanying notes 1 to 16 form an integral part of these financial statements.

STATEMENT OF FINANCIAL POSTION As at 31 December 2015
(Expressed in GBP (£)) ASSETS	Notes	2015 2014 GBP (£) GBP (£)
Non-current assets Financial assets at fair value through profit and loss	11	202,554 197,336
Total non-current assets	202,554 197,336
Current assets Other receivables	- -
Cash and cash equivalent	38,554 177,386
Total current assets	38,554 177,386
Total assets	241,108 374,722
EQUITY AND LIABILITIES Capital and reserves Share capital	12	486,719 486,719
Share premium	12	182,483 182,483
Accumulated losses	(916,310) (727,252)
Shareholders' equity	(247,108) (58,050)
Current liabilities Trade and other payables	13	78,216 65,772
Provisions for other liabilities and charges	110,000 67,000
Total current liabilities	188,216 132,772
Non-current liabilities Convertible loan	14	300,000 300,000
300,000 300,000
Total equity and liabilities	241,108 374,722

The accompanying notes 1 to 16 form an integral part of these financial statements.