SYDNEY: Calima Energy Limited (ASX:CE1) has entered into a binding definitive agreement with Aldon Oils Ltd. to sell 100% of its ownership in its wholly owned Canadian subsidiary, Calima Energy Inc., the owner of the
company’s paradise field assets for a cash consideration of A$1.3 million.

The proceeds are intended to be used to fund the Company’s current 60% buyback program
and to fund the Company’s future acquisitions and working capital.

Over the last 2 years, the Company has returned A$90 million in previous distributions to shareholders in addition to the current buyback programs.