Remuneration Report (Audited) Dear Shareholders, On behalf of the Board of Directors I am pleased to present to you the Karoon Energy Ltd Remuneration Report for the financial year ended 30 June 2021. In the midst of an on‑going global pandemic it has been a year in which a range of challenges have been encountered and managed head‑on by the team at Karoon who have all worked very well together across multiple countries. The team has successfully advanced the strategic plan, including, importantly, making the very significant transition from an exploration led company to a significant production entity, thus building enterprise value and a future growth platform for shareholders. The COVID‑19 pandemic has affected different parts of the world in varying degrees with Brazil impacted significantly. In this environment Karoon has focussed on protecting and assisting its workforce whilst at the same time doing everything possible to keep moving forward by achieving the various elements of our strategic plan. In this regard, good progress has been made. Over the 2021 financial year, the following significant strategic and operational milestones have been achieved: • Acqustioof Baúna – after successfully agreeing adjusted consideration terms; • Commencing safe and reliable production operations – Karoon successfully transitioned to Operator of Baúna and transformed into one of the largest oil producers on the ASX; • Baúna workover campaign – decision taken to proceed with the workover of 4 wells in BM‑S‑40 and the contracting of the Maersk Developer drilling rig for the workover campaign and the Patola development and for the potential drilling of a control well on the Neon light oil discovery; • Patola Development – FID being taken to proceed with the development of the Patola discovery and, in connection with this, Karoon entering into: » an integrated Engineering, Procurement, Construction and Installation (iEPCItm) contract with TechnipFMC; and » a US$160 million reserve‑based, non‑recourse, syndicated facility agreement; • Leadership – Dr Julian Fowles being appointed as Chief Executive Officer and Managing Director following the retirement of the founding Managing Director, Mr Robert Hosking; • Board succession – long serving non‑executive directors (‘NED’s),Mr Geoff Atkins and Mr José Coutinho Barbosa retiring on 27 November 2020; • NED appointment – Mr Peter Botten AC, CBE commencing as an independent non‑executive director on 1 October 2020; • Organisational restructure – the creation of a Brazil Business Unit and the restructure of the management team to enhance and deepen executive capability. During the 2021 financial year Karoon continued to maintain conservative remuneration settings. In this regard, it is noted that: • senior executive base salaries remained unchanged; • base Board fees remained unchanged (with minor changes made to committee fees to reflect the structural change of one less Board committee being in place necessitating a re‑ordering of committee responsibilities); • from 1 July 2020 to 31 October 2020, the Board and key management personnel (‘KMP’) in Australia took a 20% reduction in fees and salary to help preserve capital given the serious COVID‑19 uncertainties; • based on the significant operational progress detailed above, and achieving Karoon’s strategic targets set at the beginning of the 2021 financial year, 61.5% of the possible Short‑Term Incentive (‘STI’) outcome vested (subject to the satisfaction of a 12 month employment retention period); • given the company’s share price out‑performance relative to the requisite peer group and with a 34.6% absolute total shareholder return, the Long Term Incentive (‘LTI’) hurdles were satisfied and 100% of the possible LTI outcome as judged over the previous three years was achieved; and • no Board discretion was exercised in connection with the STI and LTI outcomes set out above and, over the past 5 years, this financial year is the first in respect of which LTIs have vested to executives. Karoon Energy Ltd 51 Annual Report 2021