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2015-11-18

Interfox Resources: Interim report July - September 2015

· Test finalized in August show the weathered crust mainly should
contain oil, and thus 71-1 is an oil field

· Based on the test results and increased understanding of the
reservoir, company internal assessments indicate that the weathered
crust may contain 97-277 mmbbl of recoverable light oil

· Directed share issue executed in September 2015 raising SEK 22.4
million at a price of SEK 3.20 per share, resulting in an issue of
7,000,000 new shares in the Company

· Charles Liu nominated to the Board of Directors, elected in
October

Important events after the end of the period

· An EGM on October 21 elected Mr. Charles Liu as a new Board member
and issued shares as additional payment for the project

· Ongoing negotiations with Asian investors proceed according to
plan

Financial Summary January - September 2015

· Net revenue during the period January - September 2015 amounted to
SEK 32 (0) thousand

· EBIT for the period January - September amounted to SEK -3 318
(-10 413) thousand

· Cash flow from operating activities SEK -3 318 (-10 471) thousand
· Cash at the end of the period amounted to SEK 11 135 (1 867)
thousand

Financial Summary July - September 2015

· Net revenue during the period July - September 2015 amounted to
SEK 0

· EBIT for the period July - September amounted to SEK -1 476
thousand

· Cash flow from operating activities SEK -1 476 thousand
· Cash at the end of the period amounted to SEK 11 135 thousand
Financial development

Revenue amounted to SEK 32 (0) thousand. The Company reported an
operating result of

SEK -5 287 (-10 754) thousand for the period January - September 2015.
The Company held SEK 11 135 (1 867) thousand in cash at the end of
the period.

Cash flow from operating activities for the period was SEK -3 317 (-14
834) thousand and current assets and accounts receivable at the end
of the period amounted to SEK 62 926 (2 258) thousand.

Investments are made into the local project company OOO
Bakcharneftegaz, in which Interfox at the end of the period via the
fully owned subsidiary Mezhlisa Resources Cyprus Ltd ("Mezhlisa") had
a registered ownership of 25.42 percent. However further investments
made into BNG now entitles the Company to register a further
ownership onto Mezhlisa so that Mezhlisa shall have an ownership of
38.61% in BNG. Such registration is under way.

The total number of shares in Interfox Resources AB (publ) at the end
of the period is 51 362 638. On October 21, an Extra General Meeting
of shareholders decided to issue a further 2 446 693 shares to the
Far East and Pacific Investments Inc. according to agreement as
additional payment for the purchase of Mezhlisa Resources Cyprus Ltd,
which holds the project in Tomsk. After registration with the Swedish
Company Office on October 27, 2015, the total number of shares in the
Company is 53 809 331. All shares are of the same kind.

Overview of operations

During the first three quarters of the year, the Company continued the
exploration program in the Tomsk region, license 71-1
Elley-Igayskoye. The license is held in the local project company OOO
Bakcharneftegaz in which the Company has the right to attain a 74
percent ownership against investing in total USD 12.4 million. The
exploration program covers the re-entry of one old well, Phase 1, and
the drilling of a new exploration well, Phase 2.

The purpose of the exploration program is to prove as much reserves as
possible and then exit the project to a larger company, more suited
for the development phase. The initial phase in proving the contents
of the asset was to attain a registration of resources under Russian
C3 standard. An application for registration was approved as per
1.1.2015 according to the following:

- Gas 16 470 million m3

- Condensate 2 831 000/1 775 000 metric tonnes geological/extractable
resources

This corresponds to 131.9 mmboe geological resources or 123.2 mmboe
extractable resources (conversion rate used: 1 thousand m3gas = 6.60;
1 metric tonne condensate = 8.18).

Substantial amounts of hydrocarbons were observed during the testing
of the well. Furthermore, amounts of pebbles and rock fragments were
received, coming from the reservoir, which indicates the presence of
a collector, a hydrocarbon reservoir, characterized by absolute
permeability, exceeding 100 mD.

The location of the new well can be affected by these new discoveries
and the subsequent analyses currently being done, so the Company
decided, in collaboration with authorities, to perform drilling with
start from the first quarter 2016.

Interfox Resources' exit strategy is based on a sale of the value in
the ground and a holding of 74% of the shares of BNG. The new well
that the Company intends to drill during the first half of 2016 is
for the purpose of registering as much as possible of C1 & C2
reserves.

The Company had samples of both gas and condensate from well #4 taken
for analysis during the spring. The results from these analyses were
delivered to the Company from the geochemical institute OAO
TomskNIPIneft. The results show that 71-1 contains both gas and
condensate of the highest commercial quality. The gas consist of
89.22% methane. This is a very good result and the gas corresponds
well to the gas Russia exports to both the EU and to Asia.

The condensate also was of the highest quality, the one that is most
valuable in the market, with a freezing point of -60C; no Sulphur;
low density = 708 kg/m3; low viscosity and the absence of solid
elements.

On August 17 2015, the Company announced results of further tests,
done in addition to the test results of gas and condensate that were
published 2015-06-08. The further test included tests both of the
pebbles that constitute large parts of the weathered crust and of a
darker fluid, expected to contain oil.

The presence of pebbles is of significant importance, as it gives
close to an absolute permeability.

The analysis of the pebbles indicate that the weathered crust contains
mainly oil. The dark fluid that was tested turned out to be a mix of
condensate (90%) and oil (10%). The geologists assume that the large
portion of condensate is caused by the very high gas pressure above
the weathered crust, forcing condensate down in the weathered crust
while the samples were taken. The test results of the combined
liquids rule out that the oil is of other quality than a light oil
with a low content of sulphur.

Based on these new test results and the increased understanding of the
reservoir these have given, the Company's geologists have estimated
that the weathered crust alone may contain 13-37 million metric tons
(97-277 mmbbl) of recoverable light oil, calculated according to
Russian standards.

In addition have recently performed new studies of old Soviet data
from well #2 shown significant quantities of light oil on 4020 m,
4080 m and 4120 m, with a density of 0.8227-0.8192.

Organization

At the Extra General Meeting of shareholders 21 October 2015 (the
"AGM"), the Board was added with Mr. Charles Liu, to add to the
previously elected board consisting of Max Renard, Anders Thorsell
and Jonathan Collins. Max Renard has been elected Chairman of the
Board of Directors by the Board, and Charles Liu was elected vice
Chairman. Peter Klimt is the CEO for the Company.

Significant events after the reporting period

On an Extra General Meeting of shareholders (the "EGM") on 21 October
2015 it was decided to elect Mr. Charles Liu to the Board of
directors. The Board then consists of Max Renard, Anders Thorsell,
Jonathan Collins and Charles Liu. At the Board meeting following the
EGM, the Board re-elected Max Renard as Chairman of the Company and
elected Charles Liu as vice Chairman.

Mr. Liu Yang Sheng (Charles Liu) is the founder of HAO Capital, a
private equity firm investing in growth companies in China with USD
980 million under management. Mr. Liu also served on the Board of
Directors of Applied Materials Inc., one of the first Chinese
nationals to serve on the Board of Directors of a Fortune 500
company, and chaired its Investment Committee, which led over USD 1
billion in acquisitions. Born in Taiwan, Mr. Liu graduated from
Princeton University with a B.A in Economics in 1972 and attended the
Juris Doctor Program of New York University School of Law. He
relinquished his Taiwan passport and U.S. Permanent Residency in 1975
to adopt the nationality and passport of the People's Republic of
China. Prior to forming HAO Capital, Mr. Liu was the Head of China of
Lazard Asia from 1992-1999. From 1975 to 1991, he served in various
capacities in the United Nations system of organizations, principally
as negotiation secretary on economic matters and development projects
in the developing countries.

The EGM furthermore decided to complete a directed share issue, with
deviation from the shareholder's pre-emptive rights. The right to
subscribe for the shares was given to the Far East and Pacific
Investments Inc. ("FEPI") in accordance with the agreement concluded
between the company and FEPI in November 2013 regarding the
acquisition of Mezhlisa Resources Cyprus Ltd ("Mezhlisa"). Payment
for the shares was made by offsetting the debt to FEPI of SEK 7 829
417.60 which was an additional payment to FEPI for the acquisition.
The issued amount of shares was 2 446 693, at a subscription price of
SEK 3.20 whereby the share capital was increased with SEK 2 446 693.

Other information

About Interfox Resources
Interfox Resources AB is an exploration company that seek to identify
license properties with potential to become significant oil and gas
assets. The Company's operations currently involve the development of
the Company's first asset, license 71-1 "Elley-Igayskoye". The
strategy is to confirm oil and gas reserves and prepare for a sale to
or a deep cooperation with a strategic partner.

Risks
Among the risks relating to the company and the industry are that the
company's operations are subject to all of the risks and
uncertainties associated with exploration, acquisition, development,
production and sale of oil and gas. All oil and gas reserves and
resources contain a degree of uncertainty. In many cases, exploration
activities never get to development and production. The company's
potential inability to retain and expand its reserves would have a
material adverse effect on the company's business, results and
financial position. The company may also suffer accidents and damage
to facilities, the environment and staff, and natural disasters. Any
major incident could have an adverse effect on the company's ability
to produce oil and gas...

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