Galilee Energy Ltd. provided the following production operations update on the Glenaras multi well pilot ("Pilot"). Overall performance at the Pilot has been as planned. There are currently 15 wells online, with 1 of the older wells awaiting a workover.

Despite this, given the inherent pump redundancy that now exists across the Pilot and from adjacent wells, water production is still around 30,000 BWPD with a gas rate around 90 Mscfd. Recently collected reservoir pressure data indicates that the Pilot is currently performing better than ever in its history. The pressure sink is now growing faster than it has previously and the Pilot is beginning to expand the volume of coal below the estimated desorption pressure.

Glenaras 14L, which is currently being used as an important observation well, has recorded its lowest pressure since commencement of the Pilot. This confirms that the R3 seam, in the central region of the Pilot, is within the critical desorption window. Additionally, the vertical production wells surrounding the laterals are also rapidly approaching the critical desorption pressure window.

The more distal Rodney Creek 8 well has also displayed a strong decline in reservoir pressure, which is evidence of the significant area that is being impacted by the current Pilot production. The clear message from this pressure data is that the new wells are performing as expected, with the resultant pressure reduction currently on trend to see an increasing area of coal below desorption pressure, which should result in larger volumes of desorbed gas in the coming months. The irrigation trials continue to successfully handle the large volumes of water being produced by the Pilot.

Currently the crops being grown are a combination of forage sorghum, barley and a small amount of lucerne. Good yields are still being recorded across the different irrigation areas. These results are very encouraging for the long-term water handling aspects of the Project.