RE:shorts are stubbornSCENARIO ANALYSIS Source: Capital IQ, and Haywood Securities 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 0 2 4 6 8 10 12 14 16 Feb 21 Mar 21 Apr 21 May 21 Jun 21 Jul 21 Aug 21 Sep 21 Oct 21 Nov 21 Dec 21 Jan 22 Feb 22 Reconnaissance Energy Africa Ltd. (RECO-V) Price History (C$) Volume (M) 50-Day MA 200-Day MA KEY RISKS • Exploration/Commerciality risk. A sole driver of our resource value is attributable to the prospective resource potential of the Company’s newly discovered Kavango Basin. The exploration and appraisal of this resource is at an early stage and will require substantial amounts of capital and resources to develop and move to commercialization. Failure to prove the presence of hydrocarbons or commerciality could very likely result in significant share price deterioration. • Environmental opposition to hydrocarbon development and public acceptance. ReconAfrica primary’s activities involve the exploration and potential extraction of fossil fuels in Namibia and Botswana. As such, public opposition may obstruct the Company’s ability to deliver on its planned activities which could negatively affect the share price. Examples of opposition include but are not limited to environmental and social group opposed to petroleum extraction, and land and water use issues. TARGET PRICE ReconAfrica is an early-stage resource exploration resource play. As such, we focus on our total risked NAV, which includes our upside estimate of the best prospective resource potential in the Kavango Basin. In arriving at our 12-month target price of $14.00/share, we have risked this upside potential by an ~36% chance of commercialization.