Melbana Energy Limited (ASX: MAY) (Melbana) is pleased to announce that it is providing eligible holders of small parcels of Melbana ordinary shares the opportunity to sell their shareholding without incurring brokerage or handling costs.

To facilitate this, the Company has established a Small Holding Share Sale Facility (Sale Facility or Facility) for holders whose shareholdings have a market value of less than $500. At the closing market price of $0.081 on the Record Date, that equates to shareholding of 6,170 shares or less (Small Holdings). The Record Date for the purposes of determining holders of Small Holdings has been set at close of trade on 17 February 2023. Shareholders with Small Holdings are not obliged to sell their shares however such shareholders will need to opt out of the Sale Facility by returning the Share Retention Form no later than 5.00pm Thursday 6th April 2023 (AEST) or their Shares will be automatically sold for them (Sale Shareholders).

Any tax consequence arising from the participation in the Sale Facility will be the responsibility of Sale Shareholders. The Company has chosen to offer this Sale Facility because as at 17 February 2023, over 2,100 of the Company's approximately 10,000 shareholders own Small Holdings. This Sale Facility will enable Melbana to substantially reduce the administrative cost of managing Small Holdings. The total number of impacted shares is 6.99 million.

In addition, it will enable investors with Small Holdings, who may find it difficult or expensive to dispose of their shares through normal means, to dispose of their Small Holdings in a cost-effective manner. A letter being dispatched to all relevant shareholders explains the Terms of the Sale Facility and the benefits to the Company. This letter will be accompanied by a Q&A Information Sheet and a personalised Share Retention Form. A copy of these are attached to this announcement

Contact:

Tel: +61 2 83 23 66 00

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