26 October 2018

Mosman Oil and Gas Limited

("Mosman" or the "Company")

Update on Gem International Resources Inc. (GEM)

Mosman currently owns c7.6 million shares in the TSX-V listed (but currently suspended) GEM (TSX-V: GI).

In February 2018, Mosman's Chairman, John W Barr, and two other parties were appointed as Directors of GEM.

Since that time  the new Board of GEM have secured GEM's records and have lodged all required documents with the Canadian authorities to bring GEM's records up todate. In addition GEM held a shareholders meeting to consider a number of matters that are expected to lay the foundation to be able to the relaunch GEM as a revitalised company.

The GEM Board has recently reviewed in some detail several potential transactions in order that the revitalisation may proceed and thus a final decision be made on  determining the appropriate business plan for GEM.

That task has not been easily achieved given the cash position of GEM, and the suspension of trading of its shares due to failures of the previous Board.

Mosman can now report that GEM is currently well advanced in finalising a Letter of Intent (the "LOI") with a unrelated third party that (if completed) will see GEM relisted, and revitalised. In the event that GEM is re-listed, that may allow market visibility on the value of Mosman's investment in GEM. Until then, it is not possible to quantify the current value of the shares ore recoverability of the $100k loan due from GEM. John Barr's time on GEM business has been billed to GEM and has also resulted in a reduction in time charges to Mosman.

Mosman is unable to estimate the likelihood of success at present as there remain several key conditions that require to be satisfied, however Mosman's objective remains to recover its investment and loan.

Should an LOI be agreed a futher announcement will be made.

John W Barr, Chairman, said:

"The revitalisation of GEM continues albeit in difficult circumstances.

Through the progress at GEM our aim is that in the fullness of time Mosman will be able to recover its equity investment in GEM and loan funds."

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Enquiries:

Updates on the Company's activities are regularly posted on its website www.mosmanoilandgas.com