Portfolio Update

ECOFIN WATER & POWER OPPORTUNITIES PLC ("EW&PO")

Update on Lonestar Resources Limited ("Lonestar")

2014 has started strongly for EW&PO controlled Lonestar, the Australian listed US shale oil and gas producer. Following a reserve update and the announcement of sizeable acquisitions, independent appraisals now value Lonestar's Proved Reserves at US$566 million, equivalent to approximately A$0.57 per Lonestar share (net of debt).

Lonestar achieved several key milestones in 2013:

· Its independently appraised Proved Reserves rose 41% to 18.2 million BOE, and the proportion in the high margin Eagle Ford Shale Basin rose from 44% to 79%;

· Lonestar's Proved Reserves at the end of 2013 were valued by independent appraisers at US$428 million;

· The value of Lonestar's Proved Reserves per share, net of debt, rose 58% to A$0.49; and

· Lonestar's growth was entirely funded through internal sources of its expanded senior secured credit facility and cash flows.

On 24 February, 2014, Lonestar announced a series of acquisitions for US$71 million that will double its footprint in prime areas of the Eagle Ford Shale Basin. These acquisitions:

· Raise Lonestar's Eagle Ford net acreage by 130% to 23,079 acres;

· Lift Proved Reserves by 40% to 25.6 million BOE, of which 85% are in the Eagle Ford Shale Basin;

· Enhance the value of Lonestar's Proved Reserves according to independent appraisers to US$566 million, which equates to a 19% increase in the value of Lonestar's Proved Reserves per share to A$0.57 (net of debt); and

· Were funded by an expansion of Lonestar's senior secured credit facility.

Alongside these enhanced operational metrics, the acquisitions add materially to Lonestar's drilling locations and potential to increase Proved Reserves as these wells are drilled. Lonestar now has 131 engineered drilling locations, including 51 on the acquired properties, representing a drilling inventory of 7 years at Lonestar's current rate of drilling. The valuation of Proved and Probable Reserves for the group is lifted to US$678 million, equivalent to A$0.74 per Lonestar share (net of debt).

This transaction has enabled Lonestar to raise guidance for 2014 EBITDA by US$15-20 million to between US$105 million and US$125 million. Lonestar has reiterated its intention for the drilling program (expanded to between $92 million and $125 million with the acquisitions) to be covered by cash flows from operations over the course of 2014.

Lonestar has also announced that it plans to seek a secondary listing in New York to improve the liquidity

of its shares.

EW&PO is the controlling shareholder of Lonestar and will continue to evaluate its strategic options in respect to its investment in Lonestar.

Phoenix Administration Services Limited

Corporate Secretary

28 February 2014