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2 ione Financial Press Limited AS Hotline: Fax: (Z:\00. AR\00 Annual Report Backup\2016\ Yanchang\Cover\01 C_IFC.indd) 1st Proof 11th April, :40 12/04/2016 (N01) ione182 P.2

3

4 11 31 Clarendon House 2 Church Street Hamilton HM 11 Bermuda Codan Services Limited Clarendon House 2 Church Street Hamilton HM 11 Bermuda

5 3 Novus Energy Inc. Novus 4,630 Novus Novus Novus712 Flaxcombe IPL 3,8733,816 1,000 Novus Novus 3

6 Novus % % 6, Office Des Mines Nationales Et des Industries StrategiquesOMNIS

7 4, ,900 5

8 % 23,320,527 22,346,997 4% 12,728 20,429 (38%) (22,803,665) (21,385,786) 7% (38,719) (88,022) (56%) (83,000) (111,985) (26%) (2,968) (4,163) (29%) (15,030) (48,839) (69%) (92,413) (127,069) (27%) (245,818) (300,158) (18%) (4,660,561) (4,878,047) (4%) (33,812) (45,038) (25%) 116,622 (36,744) (4,526,109) (4,658,425) (3%) (37.41) (39.08) (4%) (i) (ii) Novus Novus1,414,000371,386, ,797,000 40,962,000 22,949,141,00021,530,572,0007% ,145, ,225,000 6

9 12,728,000 20,429,0007,701,000 21,385,786,00022,803,665,000 Novus 88,022,00038,719,000 Novus 111,985,00028,985,00083,000,000 7

10 29% 2,968,000Novus 48,839,00015,030,000Novus Novus 34,656,000 92,413,000Novus 300,158, ,818,000 Novus 4,660,561,000 (i) 4,659,447,000 (ii) 8,615,000 (iii)6,647,000 (iv)10,448,000 1,011,000 1,047,000 1,642,000 8

11 33,812,000 (i) Novus 30,172,000 (ii) Novus2,886,000(iii)4,630 5% 754, ,622,000 (i) Novus 5,906,000 (ii) 26,699,000(iii) 149,227,000 4,526,109,000 6,652,000 9

12 % 1,878,740 2,927,654 (36%) 17,538 19,935 (12%) 29,458 29,663 (1%) 47,848 78,543 (39%) 46,258 4,165,163 (99%) 51,418 51,418 0% 29,347 60,859 (52%) 236, ,399 13% 115, ,795 (24%) 886, ,602 54% (4,383) 18,687 (467,392) (474,057) (1%) (664,085) (928,118) (28%) (353,792) (91,060) (111,227) (18%) Novus (i)(ii) 47,848,000 10

13 26,465, % (i) (ii) (iii) Novus

14 ,138,179,000 70%51,418,000 Novus 886,690, ,602,000311,088,000 12

15 3 5% Novus 1,273,914 1,018,410 3,345,174 8,290,786 1,135,860 1,402,175 1,597,267 1,704,876 1,747,907 6,585, % 25.9% 112.2% 72.6% 80,000,000 94,088,000 Novus102,150,000569,997,000664,085, ,118, ,270, ,500,000 13

16 5% 4, ,825, ,690,000575,602, % 25.9%112.2% 72.6% NovusNovus Novus 14

17 Gold Grand Investments Limited 21% 19,331,000 24,991,0001,974,000 Novus Novus ,920,000 59,276,000 15

18 16

19 18 A. Society of Petroleum Evaluation Engineers (Calgary Chapter) Canadian Institute of Mining, Metallurgy & Petroleum (Petroleum Society) Canadian Oil and Gas Evaluation Handbook COGEH COGEH National Instrument a. 90% b. 50% Sproule Associates Limited Sproule 17

20 A. Mbbl MMcf Mboe 12, , , (1,193.5) (1,314.0) (1,412.5) (28.4) 3, , , ,209.9 Mbbl MMcf Mboe 6, , , (278.2) 1,594.0 (12.5) 6, , , Mbbl MMcf Mboe 18, , , , (1,193.5) (1,314.0) (1,412.5) (306.6) 5, , , , boe= bbl= Mboe= Mbbl= Mcf= MMcf= 18

21 B ,271 bbl 3,610 mcf C ,178 38,812 98,508 98,508 83,000 83,000 19

22 52 50 SH Yanchang International (Canada) LimitedYC Canada Novus Energy Inc.Novus YC Canada Novus 2,400,000 2,880, (CFA) SWIFTTRADE 20

23

24 51 OFSCap Oil and Gas Asset Clearing House OFSCapOil and Gas Asset Clearing House Walker Energy International LLC Walker Global Energy, LLC ACN Worldwide ODMOBM 22

25 YC Canada Novus 23

26 ,320,527 22,346,997 19,354,899 7,572, ,210 (4,642,731) (4,621,681) 78,108 (75,468) (138,823) 116,622 (36,744) (25,274) (1,785) (5,465) (4,526,109) (4,658,425) 52,834 (77,253) (144,288) (4,544,205) (4,634,817) 30,920 (77,656) (149,335) 18,096 (23,608) 21, ,047 (4,526,109) (4,658,425) 52,834 (77,253) (144,288) 24

27 2,071,260 7,272,376 9,346,385 9,303,904 9,193,510 1,273,914 1,018,410 1,007, , ,528 3,345,174 8,290,786 10,353,741 10,279,527 9,410,038 (1,135,860) (1,402,175) (481,831) (491,922) (358,251) (461,407) (302,701) (85,560) (84,881) (85,425) (1,597,267) (1,704,876) (567,391) (576,803) (443,676) 1,747,907 6,585,910 9,786,350 9,702,724 8,966,

28 6,454,818,000 (1) 74% 38% (2) 63%16% 5% 5%

29 86(2)

30 41 XV

31 300, % 600, % 300,000230,00070,000 70, ,300,000( 358,825,000)5% 0.4(33 ( 90% ,062,500 29

32 ,496,729, % 1 6,496,729, % 2 897,062, % 2 897,062, % 1 6,496,729, ,062, % 46,800, ,300, ,825, ,062, % 897,062,500 5% 30

33 41 (1) 18,000,000,00021,403,800,000 (2) (a) (b) (c) A

34 %

35 14 1. A A (a) (b) 3.10(1) 3.10(2) 33

36 3.13 (i) (ii) (iii) (iv) (3) 34

37 14 (i) (ii) (iii)(iv) 35

38 36

39 B.1.2(c)(ii) 37

40 5/5 4/5 1/1 1/1 1/5 3/5 2/5 5/5 0/5 5/5 3/3 1/1 5/5 3/3 1/1 4/5 3/3 1/1 1/1 4/5 2,112,000 1,900,000212,

41 42 43 (1) ( )(21) 74(3) (2) [email protected] 39

42 (3) (2) 40

43 ( (4) 41

44

45 P

46 8 23,320,527 22,346, ,728 20,429 23,333,255 22,367,426 (22,803,665) (21,385,786) (38,719) (88,022) (83,000) (111,985) (2,968) (4,163) (15,030) (48,839) (92,413) (127,069) (245,818) (300,158) 9 (4,660,561) (4,878,047) (27,942,174) (26,944,069) 10 (4,608,919) (4,576,643) 13 (33,812) (45,038) (4,642,731) (4,621,681) ,622 (36,744) (4,526,109) (4,658,425) (306,046) (142,179) (306,046) (142,179) (4,832,155) (4,800,604) (4,544,205) (4,634,817) 18,096 (23,608) (4,526,109) (4,658,425) (4,843,969) (4,773,595) 11,814 (27,009) (4,832,155) (4,800,604) 16 (37.41) (39.08) 44

47 17 1,878,740 2,927, ,538 19, ,458 29, ,848 78, ,258 4,165, ,418 51,418 2,071,260 7,272, ,347 60, , , , , ,687 5,681 2, , ,602 1,273,914 1,018,410 3,345,174 8,290, , ,911 1,392,055 6,236,050 1,634,966 6,478, , ,949 1,747,907 6,585,910 45

48 31 467, , , , ,118 1,135,860 1,402, , , , , , , ,701 1,597,267 1,704,876 3,345,174 8,290, ,054 (383,765) 2,209,314 6,888,611 46

49 i ii iii iv v 162,911 6,639,269 3,156 17, ,259 2,285,265 8,526 1, ,549 9,483, ,674 9,786,350 (4,634,817) (4,634,817) (23,608) (4,658,425) (138,778) (138,778) (3,401) (142,179) (138,778) (4,634,817) (4,773,595) (27,009) (4,800,604) (6,280) (6,280) 383, , ,041 (63,202) (63,202) (63,202) 80,000 1,524,564 (319,839) 1,204,725 1,284,725 1,316 1, ,880 7,646 (7,646) 242,911 8,163,833 3,156 (121,578) 385,259 2,285,265 16,172 2,857 (4,498,914) 6,236, ,949 6,585,910 (4,544,205) (4,544,205) 18,096 (4,526,109) (299,764) (299,764) (6,282) (306,046) (299,764) (4,544,205) (4,843,969) 11,814 (4,832,155) (5,810) (5,810) (i) (6,400,773) 6,400,773 (26) (26) (12) (38) 5,727 (5,727) 242,911 1,763,060 6,403,929 (421,342) 385,259 2,285,265 21,899 2,831 (9,048,846) 1,392, ,941 1,747,907 47

50 (i) (i)6,400,773,000 (ii)1,763,060,000 1,763,060,000 6,400,773,000 (ii) (iii) Madagascar Energy International Limited 7%385,000,000 93% 259,000 (iv) 10% 50% (v) 2,778,000 3,329,0002,816,000 1,449,00038,000 1,880,000 48

51 (4,642,731) (4,621,681) (10,847) (11,373) , , (1,047) 19 (1,011) (1,099) (1,642) (2,144) 8,615 2, , , , ,138,179 4,517, ,072 (38) 1,880 6,647 (15,156) 15,898 (28,265) 37 (1,420) 13 33,812 45, , ,367 (45,675) (103,155) 28,320 (33,570) 3,339 (15,841) 95, ,894 (2,830) (5,168) 391, ,527 10,847 11,373 (36,411) (49,083) 366, , (1,643,492) (5,986) (35,974) (210,509) (650,127) 2,126 (216,495) (2,327,467) 49

52 490,044 1,191,665 (30,172) (36,367) (624,295) (1,180,734) 358,825 1,600,000 (2,905) (3,140) 191,497 1,571, ,359 (240,226) 575, ,460 (30,271) (32,632) 886, , , ,602 50

53

54 a b

55

56

57

58

59

60 3. (a) ( 622 ) (b)

61 3. (b) 1 (c) 59

62 3. (c) 60

63 3. (c) (i) (ii) 39 (d) (i) (ii) 2 (iii) 5 61

64 3. (d)

65 3. (e) (f) 63

66 3. (g) 64

67 3. (h) 20% 30% 20% 20% 30% 50 65

68 3. (i) (j) (k) 66

69 3. (l) 67

70 3. (m) 68

71 3. (n) (i) (ii) (iii) (o) 69

72 3. (p) 70

73 3. (p) (q) 71

74 3. (r) 72

75 3. (r) 30 73

76 3. (r) 74

77 3. (r) (i) 75

78 3. (r) (ii) 76

79 3. (r) (s) 77

80 3. (s) (t) 78

81 3. (u) (v) (w) (a) (i) (ii) (iii) 79

82 3. (w) (b) (i) (ii) (iii) (iv) (v) (vi) (a) (vii) (a)(i) (viii) (a) (b) (c) 80

83 3. (x) (y) 81

84 4. 3 (a) (b) (c) (i) (ii) (iii) 82

85 4. (c) (d) 16 (e) 47,848,000 78,543,000 26,465, ,924, (f) 83

86 4. (g) Canadian Oil and Gas Evaluation Handbook COGEH (h) (i) 84

87 5. (a) , , ,346 16, , ,602 1,136, , ,687 1,136, , , , , , , , ,227 1,466,230 1,433, ,383 1,470,613 1,433,696 85

88 5. (b) (i) (ii) ,641,0008,557,000 86

89 5. (b) (iii) ,275,000 87

90 5. (b) % 357, , , , , , , ,406 91, , , ,792 1,167, ,825 1,526,051 1,466, , , , , , , , , ,227 1,506,056 1,506,056 1,433,696 (c) (i) (ii) (i) (ii) (iii)

91 5. (c) (35) 18,687 2 (4,348) % 9.79% 37% 89

92 5. (c) 353, , ,597,267 1,704,876 1,747,907 6,585, % 25.9% 7. (a) (b) 90

93 7. 371, ,425 22,949,141 21,530,572 23,320,527 22,346,997 (40,962) 247, , ,225 67, ,022 12,728 20,429 1,011 1,099 1,047 1,420 (6,647) 15,156 (196,072) (4,138,179) (4,517,062) (26,465) (207,924) (828) (493,975) (24,794) (49,711) (4,608,919) (4,576,643) (33,812) (45,038) (4,642,731) (4,621,681) 116,622 (36,744) (4,526,109) (4,658,425) 91

94 7. 1,767,708 7,066,731 1,001, ,511 2,769,067 8,044, , ,544 3,345,174 8,290, ,116 1,145, , ,889 1,235,055 1,701, ,212 3,448 1,597,267 1,704,876 1,405 1,301 5,675 5, ,224 6, , , , ,806 8,615 2,371 8,615 2, , ,072 4,138,179 4,517,602 4,138,179 4,517,602 26, ,924 26, , , ,975 * 137, ,459 38,978 71, , ,927 * 92

95 7. 371, ,425 1,673,468 2,760,396 22,949,141 21,530, , ,231 9,363 4,109, ,320,527 22,346,997 2,071,260 7,272,376 22,949,141,000 21,530,572,000 14,886,296,000 15,725,800,000 10% 10% A 8,757,103 9,993,683 B 6,129,193 5,732,117 93

96 8. 371, ,425 22,949,141 21,530,572 23,320,527 22,346,997 10,847 11,373 1,828 3, ,134 12,728 20, (6,647) 15, ,011 1, , ,420 1,642 2,144 (8,615) (2,371) (196,072) 21 (4,138,179) (4,517,062) 20 (26,465) (207,924) 18 (828) 17 (493,975) 10,448 25,563 (4,660,561) (4,878,047) 94

97 10. 1,900 1, ,803,665 21,385, , , ,561 12,764 57,240 42,

98 ,789 3,383 2,789 3, ,289 5, ,813 5,610 96

99 11. 1,000, ,500,001 3,000, ,000,001 3,500, , , (a) 97

100 12. (b) 11 4,950 7, ,968 7,945 1,000,001 1,500, ,500,001 2,000, ,000,001 2,500,

101 13. 30,172 36, , ,886 3,205 33,812 45, (a) 25% 27% 25.95% 26,699 25,837 5,906 13, (149,227) (2,168) (116,622) 36,744 99

102 14. (b) % % % % % (39,689) 95,416 (558,206) (4,140,252) (4,642,731) (6,549) (16.5) 23, (150,716) (27.0) (828,050) (20.0) (961,461) (20.7) 6, , , , , (5,379) (5.6) (143,992) (25.8) 144 (149,227) (3.2) 5, , , (138,086) (24.7) 144 (116,622) (2.5) % % % % % (43,883) (105,832) 239,287 (4,711,253) (4,621,681) (7,241) (16.5) (26,458) (25.0) 62, (942,250) (20.0) (913,854) (19.8) 2, , (5,604) (2.3) 941, , (3) (51,901) (49.1) 6, (45,343) (1.0) 4, , (902) (2.1) (26,064) (24.6) 63, ,

103 (4,544,205) (4,634,817) 12,145,573 11,860,

104 ,684 3,488 1,976 2,569 38, , , ,444,833 2,446,324 2,311 3, ,034 68, ,015 (69) (69) 21 10,338 10,338 (3,428) (95) (101) (92) (23) (139,993) (1,202) (144,934) 133,256 5,704 6,729 3, ,982, ,773 3,237, ,636 98,508 36, ,851 (84) (355) (87) (526) ,809 (5,809) (7,668) (392) (865) (178) (68) (492,641) (6,443) (508,255) 125,695 11,174 8,413 2, ,588, ,629 2,866,545 9,524 1,168 1, ,374 4, , , ,634 (5) (5) (253) (31) (30) (15) (4) (2,174) (2,507) 13,571 1,651 2, , ,496 4, , , ,324 (20) (144) (75) (239) 493, ,975 (825) (104) (226) (60) (58) (59,478) (60,751) 16,810 2,370 3,628 1, , , ,885 8,804 4,785 1,526 1,625, ,629 1,878, ,685 4,053 4,417 2, ,691, ,773 2,927,

105 17. 4(g) 1.5% 10% 493,975,000( ) 18 10%(10%) 2% 55,583,0001,588, ,457 21,497 (494) (524) (828) (1,123) (516) 18,012 20,457 18,012 20, ,538 19,935 18,012 20,

106 , , ,000( ) ,099 1,099 (535) 29,663 1,011 (1,216) 29,458 1,011,000 1,099,000 (i) (ii) (iii) 104

107 19. 20,158 21, ,690 8,646 2,500 8, % 10% 5.5% 10% 9,300 8,

108 19. 3,881 3,881 4,187 4,187 9,938 9,938 2,152 2,152 9,300 9,300 15,333 14,125 29,458 4,118 4,118 4,224 4,224 10,495 10,495 2,246 2,246 8,580 8,580 14,944 14,719 29,

109 ,120 (7,351) 285,769 (16,442) 269, ,924 (698) 207,226 26,465 (12,212) 221,479 47,848 78,

110 20. 26,465, % 207,924,

111 20. 5% 21.2% ,341,671 4, ,229 44,357 (2,905) 17 (10,338) (3,627) 12,439,284 38,812 (8,615) 17 (325) (10,598) 12,458,558 3,757,059 4,517,062 8,274,121 4,138,179 12,412,300 46,258 4,165,

112 21. (i) (ii) (iii) )2) 3) 4,138,179,

113 21. 4,517,062,

114 , ,072 (196,072) (196,072) Gold Grand Investments LimitedGold Grand Gold GrandGold Grand 196,072,

115 23. 51,418 51,418 51,418 51,418 19,3% 19.4% 5% 113

116 % 16, ,553 (243) (125) (34) (125)

117 , , , , ,399 2,025, , , ,148 3,902 34, ,346 16, , ,

118 28. (35) 18, (4,348) (4,383) 18,687 1, WTI-NYMEX WTI-NYMEX ,361, ,972,

119 ,000, ,000,000 2,000,000 2,000, ,145,573 8,145, , ,911 4,000,000 80, ,145,573 12,145, , ,911 1,600,000, ,000,000, % 1% 117

120 30. (i) (ii) (iii) ,557,304684,557,304 10%5.6% 5.6% , , ,099 79,706 65, , , , , , , , , , ,319 2,873,000 3,129,

121 32. a 94, ,664 b 569, , , , % % (a) 80,000,000 94,088, ,000, ,664,000 (b) Novus Energy Inc.Novus 110,000,00092,150, ,197,000109,050,000728,454,00015,000,000 10,000,00055,800,000Novus 1.0% 3.5% 0.5% 2.5% 2.0% 4.5% 1.75% 3.75%2.0% 4.5% 1.5% 3.0% 0.5% 1.125% 0.2% 0.45% % 1.75% 0.75% 2.75% 2%2.75% 1.75%0.6875% 0.25% 2.00% 200,000,000Novus Novus

122 33. 46,300,000 5% ,000,000 1,000, %(a)(b) (c) (d) (e) 5 5% 9.76% 120

123 ,430 5, , , (392) 353,792 3,986 1,409 5,395 9 (1,276) 229 (1,047) 2,710 1,638 4,

124 % 37% 1.30% 1.30% 9.76% 9.79% i) 5% 1,638,000 ii) 2,710,

125 33. 1,600,000, ,000,0001,000,000 4,000,000, % 1,600,000 1,216, ,041 1,216, ,466 (1,222,425) 4,000,000,

126 , , ,342 (3,623) (5,168) (1,936) (616) 13 2,886 3,205 (18,286) (5,797) 91, ,227 25,700,000144,000,000 26,100,000174,000, %2% Novus 124

127 35. 7,627 1,846 2,807 73,280 85, ,364 (26,807) (128,292) (1,080) 41, , , (51,981) 4,886 (3,563) (2,978) 1,028 2,071 (902) (2,168) 63,202 63,202 (62,300) (62,300) (13,273) (46) (40) (1,663) (36) 1,507 7, (2,318) (8,713) 273,753 1,800 3,003 19,636 4,850 (28,863) (124,166) 41, , (99,203) 1,382 (6,617) (3,037) 508 (43,260) 1,000 (149,227) 9, (991) (4,265) 1,424 5,481 (48,247) (104) (107) (1,057) (753) 4,760 21,201 (6,866) (31,173) 135,450 1,696 4,278 11,962 1,226 (24,586) (150,490) 37,019 16,

128 , , ,450,0001,643,492,000 Novus NovusNovus Viking 17 1,646, ,173 2,446, ,229 65, , ,592 4,938 4,938 (113,956) (113,956) (641,146) (641,146) (9,915) (9,915) 34 (103,261) (103,261) 35 91,832 (207,725) (115,893) 9 1,052, ,448 1,644,912 (1,420) 1,643,

129 37. 1,643,492 (1,643,492) (1,643,492) (i) 44,092,000 (ii) Novus 816,425, ,821,000 (iii) Novus (iv) 22,391,044,0004,630,566,000 (v) 112,592, ,592,

130 38. 6,512 8,985 6,362 12,886 12,874 21,871 1,311 2,608 2,110 6, ,467 9, ,331,000 24,991,000 1,974,

131 ,315 7, ,345 7,260 2,358,345 2,557,372 14A 129

132 42. Dolaway Group Limited Madagascar Petroleum International Limited 1, Madagascar Energy International Limited 1, ,000,000 25,500,000 35,000, Metro City Group Limited ,000, Yanchang International (Canada) Limited 238,022, Novus 131,671, Madagascar Energy and Petroleum Investments Limited 2,000,

133 42. 30% 30% 18,267 (23,799) 95,363 88,125 30% 30% (34) 54 17,578 18, , , , ,862 (513,105) (530,325) (23,421) (30,495) 222, ,626 95,363 88,

134 42. 22,949,141 21,530,572 (22,803,665) (21,385,786) (84,586) (224,115) 42,623 (55,530) 18,267 (23,799) 60,890 (79,329) (12,148) (6,818) (5,207) (2,923) (17,355) (9,741) 30,475 (62,348) 13,060 (26,722) 43,535 (89,070) (5,810) (6,280) 137,119 83,166 (5,563) (8,960) (105,036) (130,796) 26,520 (56,590) 132

135 42. 4,166 9, , ,408 (75,076) (49,803) 41,014 43,601 17,578 18, (291) (64) (79) 126 (34) 54 (113) 180 (2,508) (1,119) (1,075) (479) (3,583) (1,598) (2,587) (993) (1,109) (425) (3,696) (1,418) 27,011 (1,707) (33,352) (93,195) (63) 40,413 (6,404) (54,489) 133

136 43. 1,380,657 6,173, ,380,734 6,174,089 1, , , , ,815 1,955,441 6,418, , ,911 1,039,255 5,861,831 1,282,166 6,104, , ,089 4,051 3,073 4, , , , , ,162 1,955,441 6,418, ,224 (69,347) 1,635,958 6,104,

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