Samson Oil & Gas Enters into Letter of Intent with Respect to Foreman Butte Project

Samson Oil and Gas Limited (ASX: SSN and OTC: SSNYY) has executed a
non-binding letter of intent to sell its Foreman Butte Project, which
comprises substantially all of its assets, to Firehawk Oil and Gas LLC
for US$41.5 million. The parties have agreed to a 21-day exclusivity
period during which the buyer will conduct customary due diligence on
the properties with a view to executing a definitive agreement at or
prior to its expiration. The effective date of the transaction would be
January 1^st 2018.

Samson and Firehawk, a private equity funded exploration and production
company, expect to close the sale by 1 March 2018. Firehawk has already
conducted an extensive technical and financial analysis of the Project.

The transaction is subject to the approval of Samson’s shareholders,
which will be sought at a shareholder meeting to be called as soon as
practicable.

When completed, the transaction would allow the Company’s current debt
facility with Mutual of Omaha Bank to be repaid in full along with its
other liabilities, including the Company’s hedge book.

The Company would expect to emerge from this transaction with a cash
balance of approximately US$12 million. The residual cash calculation of
US$12 million is only an internal estimate, has not been audited and is
subject to change. However, it would represent a net cash asset value of
US$0.73 per ADS or A$0.0045 per ordinary share (assuming a 0.8 exchange
rate to the A$).

The Foreman Butte Project was acquired for $16 million in January 2016.
Upon its acquisition, the Company recognized a gain on bargain purchase
of $10.8 million. After allowing for capital expenditures, depreciation
and the release of associated provisions for asset retirement, the
Company would expect to record a profit of approximately US$10.0 million
on the proposed US$41.5 million sale, before transactional expenses and
associated costs.

Samson’s Ordinary Shares are traded on the Australian Securities
Exchange under the symbol "SSN." Samson's American Depository Shares
(ADSs) are traded on the OTC Markets under the symbol "SSNYY." Each ADS
represents 200 fully paid Ordinary Shares of Samson. Samson has a total
of 3,283 million ordinary shares issued and outstanding, which would be
the equivalent of 16.5 million ADSs. Accordingly, based on the OTC Pink
closing price of US$0.15 per ADS on January 19th, 2018, the Company has
a current market capitalization of approximately US$2.6 million.
Correspondingly, based on the ASX closing price of A$0.002 for ordinary
shares, on January 19^th, 2018, the Company has a current
market capitalization of approximately A$6.5 million.

SAMSON OIL & GAS LIMITED

TERRY BARR
Managing Director

Statements made in this press release that are not historical facts may
be forward-looking statements, including but not limited to statements
using words like “may,” “believe,” “expect,” “anticipate,” “should” or
“will.” Actual results may differ materially from those projected in any
forward-looking statement. There are a number of important factors that
could cause actual results to differ materially from those anticipated
or estimated by any forward-looking information, including the risks
that the anticipated sales transaction will not close or that the
purchase price will be materially reduced on account of potential
liabilities uncovered during due diligence as well as uncertainties
inherent in estimating the methods, timing and results of exploration
activities. A description of the risks and uncertainties that are
generally attendant to Samson and its industry, as well as other factors
that could affect Samson’s financial results, are included in the
prospectus and prospectus supplement for its recent Rights Offering as
well as the Company's report to the U.S. Securities and Exchange
Commission on Form 10-K, which are available at www.sec.gov/edgar/searchedgar/webusers.htm.

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