LETTER FROM THE CEO. Dear Investor,

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1 I N T E R I M R E P O R T

2 LETTER FROM THE CEO Leigh A. Hooper, CEO Dear Investor, The key events at Activa during the first half of 2013 pertaining primarily to the OSR-Halliday Unit, the company s main asset in East Texas have been previously reported and are summarised in this report. We have, however, also been busy on a number of other fronts and we also provide detail on these developments. In short on OSR-Halliday; our latest 2 wells put on production towards the end of the first half are proving to be our best to date. As well as strong initial production rates we have significantly reduced drilling time and costs so that the economics of our horizontal wells are continually improving. Our acreage has now been substantially de-risked and we are very confident of our ability to press on and produce the oil reserves from the Woodbine formation. The revenue impact of the new wells is significant: July 2013 production revenues reached a record level of EUR 600,000. We are therefore currently annualizing EUR 7 million in production revenues. For those new to Activa; the attraction of the Woodbine play is the history of conventional production (OSR-Halliday has been producing non-stop since 1962) and the ability to apply modern-day horizontal drilling and fracturing technology. It s also 80 % oil thus allowing us to benefit from the historically high oil price. The remaining 20 % comprises associated gas and liquids production. We now believe we can drill over 56 horizontal wells in the Unit targeting the Woodbine alone. We continue to estimate that OSR-Halliday holds at least 20 million BOE of economically producible primary reserves in this zone in addition to substantial secondary recovery potential. The OSR-Halliday unit has to date produced primarily from the Woodbine. Our team of geologists and technical staff also believe other horizons are prospective on our acreage and provide significant upside potential. For example, in the Dexter interval approximately 150 feet below the Woodbine, we estimate the Original Oil in place (OOIP) at over 250 million barrels. If the interval proves economically productive this could provide substantial upside to Activa s position and further inflate the value of the unit. To better understand the geology of these additional formations we signed an agreement during 2

3 the first half to participate in a new 100 square mile 3D seismic survey which will include over 75 % of our OSR acreage. We have secured extremely favourable terms to acquire the data over our acreage including a 2 mile halo around the acreage position. A word on strategy: we are working hard to grow Activa Resources on the back of our OSR-Halliday success by building a focussed portfolio of high potential prospects. We previously provided detail on two new prospects Montgomery County and Hall s Bayou, both located in Texas. In this report we provide an update on these as well as outlining a new project which we are referring to as Project X where we are planning to use our experience to develop a new vertical and horizontal drilling play. In the next 6 months we will see increased drilling activity. This will include the next wells at OSR-Halliday, initial wells at Halls Bayou and Project X and further wells at Adams Ranch. We also expect to be able to report on the pilot waterflooding operation at Gray Waterflood in Louisiana by the end of the year. I would like to emphasise our strategy with regard to managing risk and how we are funding the development of our assets. During the first half of 2013 we used a combination of cash flows and a further draw-down on our 3.75 % credit facility. This will continue to be the case as we move forward. However, after the 6th OSR-Halliday well (scheduled for October) we anticipate that further drilling there will be funded from the project cash flows. Furthermore, Adams Ranch and Gray Waterflood are both self-financing. Halls Bayou and Project X are projects where we are making small investments to prove the viability before we expand acreage positions. The initial evaluation of these new opportunities will account for a maximum 20 % of our capital expenditures. Our aim is to be opportunistic and expose the company to projects with significant upside potential but minimise our at-risk dollars. I invite you to read the details of our endeavours in the project section. Thank you. Leigh A. Hooper CEO This report is based on the Activa Resources AG consolidated financial statements prepared in accordance with IFRS and reviewed by the company s US and German auditors. 3

4 Drilling Activas first vertical well at Project X (July 2013) 6

5 KEY DEVELOPMENTS AT A GLANCE. g 2 new OSR-Halliday horizontal wells completed in H1 with best performance in field to date g First vertical well at Project X drilled g Next OSR-Halliday horizontal well to spud the coming weeks g H1 revenues EUR 2.13 million with group EBITDA of EUR 0.23 million g Record monthly revenues of EUR 600,000 in July 2013 g Funding via cash flows and 3.75 % bank facility g Further project disposal as part of strategy to focus on projects with higher growth potential A C T I V A S M A I N P R O J E C T S ARKANSAS T E X A S L OUISIANA OSR-HALLIDAY LOMA FIELD HALLS BAYOU GRAY WATERFLOOD ADAMS RANCH MONTGOMERY COUNTY HOGG-HEAVEN HIDALGO FRIO main projects other projects 5

6 OPERATIONS REPORT 5 % like-for-like decline in revenues Oil production down 6 % Activa Resources AG generated consolidated revenues of EUR 2.16 million from the production of oil and natural gas during the first half of 2013 (2012 H1: EUR 2.41 million). This equates to a net decline adjusted for asset sales of 5 % and results from a 4 month delay on completions at OSR Halliday. Total revenues comprised 81.9 % oil, 14.7 % natural gas and 3.4 % natural gas liquids. Activa s net production of oil stood at 22,049 Barrels with associated revenues down 7.5 % on 6 % lower production. Net natural gas production declined 29 % to MMCF primarily resulting from declines at Loma Field and Hidalgo Frio and the installation of a JT unit at OSR which increased NGL volumes and decreased natural gas volumes. Thanks to better natural gas pricing, natural gas revenues increased 5.7 % yoy. NGL volumes rose 26 % to 93,597 gallons, their revenues remained stable. On a BOE basis prodcution volumes totalled 43,020 BOE, representing a 16 % decrease vs. 51,430 BOE*. The ratio between oil and natural gas/ngl improved to 51 % oil / 49 % gas products. R E V E N U E S A N D P R O D U C T I O N B Y P R O J E C T I N H 1 REVENUES (in USD million) PRODUCTION (in BOE) REST 0.18 REST 2,732 HIDALGO FRIO 0.09 HIDALGO FRIO ADAMS RANCH 4, LOMA FIELD 0.17 TOTAL 2.78 TOTAL 43,020 ADAMS RANCH 5,143 LOMA FIELD 4,591 OSR-HALLIDAY 2.13 OSR-HALLIDAY 25,896 First five horizontals successful OSR-HALLIDAY, TEXAS During Q2 we completed and put the fourth and fifth OSR-Halliday horizontal wells on production. With initial daily production rates of up to 820 BOE the fourth well (96-4H) is the best well drilled to date in the field and appears to be one of the better wells in the area. Likewise the fifth horizontal well (105-5H), which recored IP rates of 600 BOED. We expected lower rates here because of a shorter lateral section. As with the previous wells, initial daily production rates clearly exceeded the targetted range of BOE. * On a like-for-like basis, adjusted for asset sale and change in conversion rates of gas products. 6

7 The latest well results again confirm that OSR-Halliday is ideally located in the Woodbine play and that our acreage has been significantly de-risked. Importantly, Activa and its partners have further optimised the drilling operations, such that the fifth well was drilled in only 21 days. This, along with other changes, has resulted in 20 % lower drilling and completion costs. Our previous 50 well assumption, based on 320 acre spacing, has been revised upwards to 56 wells. It is noteworthy that offset operators are drilling down to 160 acre spacing. This would imply significantly more well locations at OSR-Halliday (not including wells to produce reserves from other horizons). Activa continues to estimate reserves of 300,000 to 450,000 BOE per well and therefore total primary recoverable reserves from the Woodbine exceeding 20 million BOE. Drilling of the 6th horizontal well is scheduled to commence in the coming weeks. This will by funded out of cash flows and under Activa s credit facility with Texas Capital Bank. Activa is participating in a major new regional seismic survey. The initial data is expected to be available for review in Q4. Activa and its partners will move quickly to evaluate the data for additional opportunities in both the Woodbine and other horizons. Water injection programme in progress GRAY WATERFLOOD, LOUISIANA The Gray Waterflood project is a high-impact oil play which Activa controls and is operating. It is located near the Texas border in Louisiana in one of the most prolific oil producing areas of the gulf coast the initial discover of oil here was made 100 years ago. With this project we are therefore returning to a well known-reservoir to use the latest in waterflooding technology to produce an additional 1-2 million barrels of oil. The waterflooding operations commenced in December 2012 and will continue into the fourth quarter of 2013 when we expect to see initial results from this pilot project. If the pilot project is successful then Activa will implement the full waterflood programme. This project is being funded primarily from production revenues from the Stream A-3 well on the same lease, which we re-entered in 2011 and completed in a different interval than the waterflood target formation. It continues to produce approx. 12 BOD. Drilling activity continues ADAMS RANCH, TEXAS Activa has been producing oil and natural gas at Adams Ranch for several years. In the last 2 years we have been drilling new wells in the shallow Escondido formation (400ft.) in advance of pilot waterflood operations in addition to producing natural gas from the shallow Olmos formation. Current field production ranges from BOED. We drilled a further 10 wells in May 2013 to further test the oil-bearing Escondido formation. The 10 wells are producing 7-10 BO daily. Each of these long-life wells will produce approximately 3,000 barrels without waterflooding and are economic. Our plan is to use waterflooding to raise the recovery volumes per well from approx. 3,000 BO per well to 15,000 BO. 7

8 Early in the year, Activa applied with the State of Texas for a water injection permit for the initial pilot well. Due to increased regulatory oversight and activity at the Railroad Commission this process is expected to take up to 12 months (vs 90 days in prior years). While we are waiting for the waterflooding permits we will continue to build up oil production by drilling a further 20 wells in the coming six months. Like Gray Waterflood, we are funding the development of the Adams Ranch field primarily with cash flows from the field s production. NEW PROJECT INITIATIVE As reported during the second half of 2012, Activa has embarked on a New Project Initiative with multiple projects in development. These will provide Activa with opportunities to participate in new drilling prospects to expedite growth. They include: New play with vertical and horizontal potential PROJECT X Given Activa s success at OSR Halliday, whereby new technologies in the form of horizontal drilling and multi-stage fracing has proven effective in a tight conventional reservoir, Activa is currently evaluating several projects for similar type opportunity on varying scales. Project X is the first of these opportunities with both vertical and horizontal drilling potential that we are describing here for the first time. The name Project X is a working title. We will not be publishing name, location details and reserve potential until we have finished securing our full acreage position. Activa has leased approximately 1,600 acres and recently drilled the initial vertical evaluation well. The well was drilled and thorough reservoir analyis work was performed including a whole core evaluation and full complement of logs. The initial review has been positive confirmed Activa s pre-drill assumptions. The well will be fracked and completed in the coming weeks. If the completion is successful, Activa will move forward with the project development which could initially contain 12 horizontal or up to 40 vertical well locations. Activa owns a 100 % working interest in the project. Drilling to begin in 2014 Q1 HALLS BAYOU, TEXAS In 2012 Activa entered into a Joint Development Agreement with Aurora Resources, a private oil and gas company in order to expose Activa to additional high potential oil and gas prospects. In return for 50 % of each project Activa has agreed to provide technical and marketing support for the projects. Aurora has contributed the leased acreage, seismic data and initial geological work. Activa has completed its geological and geophysical review of the initial project, Halls Bayou in Brazoria County, Texas, one of 4 clearly defined prospects on the 1,200 acres contributed by Aurora in an area on trend with Activa s Loma Field project in Galveston County, Texas. Activa has almost finalised putting a consortium of industry partners together which will allow the first well to spud in January Activa well retain an approximate 20 % working interest with a significant carry of this interest. 8

9 Natural gas potential for when prices recover 4,300 acres leased MONTGOMERY COUNTY PROJECT, TEXAS The Montgomery County prospect is a higher-risk internally generated drilling prospect with reserve potential of 475 BCF natural gas and 12.8 million barrels of condensate and equal liquids. The project is directly on strike and prospective in the same formations as the recently announced Wildcat Midway-Navarro Liquids play developed by Halcon Resources. Activa has put an acreage position together totalling 4,300 acres and reprocessed and interpreted seismic data with expansion potential to over 20,000 acres. Activa has completed its technical work on the project. Marketing and drilling activity will commence when natural gas prices have recovered. 12 % of revenues in H1 OTHER PROJECTS Activa continues to produce oil and gas at Loma Field, Hidalgo Frio and other non-core projects. These projects accounted for 12 % of Activa s revenues in the first half of Development potential remains at Loma Field, where a second natural gas well will be drilled when US natural gas prices have recovered. The lease is held by production from the SE2 well, one of Activa s best wells since it came on line in 2008, which continues to produce after a 4 to 1 payout since going on production. Asset sale raises USD 0.6 million SALE OF NON-CORE ASSETS Activa has sold certain non-core assets with the aim of creating a more focussed portfolio of high potential oil and gas prospects. Further to the previously reported sale of Big Mule in 2011 for USD 100,000 and the so-called Bright Properties for USD in 2012 Activa sold its interest in the CERF/4 Counties prospect for USD 575,000 during the first half of In total Activa has sold non-core assets raising to date approx. USD 1 million. P R O D U C T I O N R E V E N U E S USD million H H H H H H H *Record revenues expected in

10 RESERVE REPORT 3.60 million BOE proven reserves In March 2013 Activa published new reserve estimates pertaining to its portfolio of oil and gas assets. PV10: USD 89.1 million Activa Resources 1P (proven) reserves amounted to 3.60 million BOE at 1 January 2013 (vs million BOE in prior year). Activa accomplished a net increase in proven oil reserves year over year (+1.3%) vs. a decline in proven natural gas reserves (-14%). Their value increased 16 % y-o-y to USD 89.1 million (PV10). This increase was achieved in addition to replacing approx. USD 6.3 million of production revenues during The increase resulted primarily from a further shift of reserves from natural gas to oil in accordance with Activa s strategy of recent years. It also reflects the superior pricing environment of oil relative to natural gas and an improved oil price outlook (Nymex strip) as well as improving cost ratios at OSR-Halliday. The higher valuation of Activa s oil reserves resulting from the drilling activity at OSR Halliday and Adams Ranch more than compensated for the estimates for natural gas reserves at Adams, Hidalgo Frio and Loma Field which were negatively affected by price. 2P reserves (proven and probable) at the end of 2012 amount to 6.69 million BOE (-3 %). The value of Activa s 2P reserves increased 12 % from USD million to USD million (PV10). The reserve estimates were prepared internally with the support of Sojen Consulting, LLC, independent third party engineers based in Austin, Texas. Drilling Activas first vertical well at Project X (July 2013)

11 FINANCIAL REPORT I. CONSOLIDATED INCOME STATEMENT Revenues marginally lower adjusted for asset sales Overhead costs higher after new hires Oil hedge generates immaterial loss EBITDA of EUR 0.23 million Activa Resources AG generated consolidated revenues of EUR 2.13 million from the production of oil and natural gas during the first half of 2013 (2012 H1: EUR 2.41 million). This decrease results from asset disposals and 5 % lower oil and gas production revenues. These figures also reflect the fact that our new OSR-Halliday wells came on production 4 months later than anticipated. The total direct costs of oil and gas operations comprising production taxes and lease operating expenses amounted to EUR 0.74 million vs. EUR 0.65 million in H In percentage of revenue terms, direct prodcution costs increased from 26.6 % to 34.7 %. Productions costs increased primarily at OSR due to increased infrastructure expense to accommodate new wells as well as higher costs at the Gray Waterflood for the pilot injection program. Depreciation expenses declined from EUR 0.99 million to EUR 0.70 million and comprise almost entirely expenses for depreciation, depletion and accretion (DD&A) non-cash expenses charged to adjust capitalised costs for proportional production of Activa s oil and gas reserves. Expenses for impairments, project abandonments or dry hole costs amounted to EUR 8,700 vs EUR 0.18 million in H Activa s overhead costs increased to EUR 1.17 million (vs. EUR 0.87 million). These comprise personnel expenses (EUR 0.63 million vs. EUR 0.48 million) and other operating expenses (EUR 0.54 million vs. EUR 0.39 million). The increase in personnel expenses is primarily attributable to two new technical staff who joined Activa during During the first half Activa had in place a costless collar hedge with a floor and cap of USD 80 and USD 106 respectively on 50 BOPD. The hedge position generated a net cash loss of USD 6k (vs. USD 22k in the same period of 2012). Currently 22 % of our oil production is hedged. None of Activa s natural gas production is hedged. Profits before interest, taxes and depreciation expenses (EBITDA) amounted to EUR 0.23 million (EUR 1.03 million in the first half of 2012). Interest expenses rose marginally from EUR 0.28 million to EUR 0.31 million. A net loss of EUR 0.78 million (EUR 0.24 million in 2012) was recorded. II. CONSOLIDATED BALANCE SHEET Total assets EUR million No bond conversions in H1 The group balance sheet total was unchanged at EUR million (from EUR million) at June 30. Fixed assets (comprising almost entirely capitalised expenditures in Activa s oil and gas projects) rose to EUR million vs. EUR million. There were no conversions of the 8 % Activa Resources AG convertible bond 2011/2014 during the first half of Paid-in capital therefore remained unchanged vs year-end 11

12 20 % y-o-y increase in debt at EUR 5.20 million. At the time of writing the outstanding amount of the convertible bond amounts to EUR 2.39 million. Total equity amounts to EUR 2.91 million. Activa has used its 3.75 % credit facility with Texas Capital Bank in order to fund a portion of the latest OSR-Halliday wells. Activas total financial debt increased from EUR 8.18 million at June 30, 2012 to EUR 9.82 million at June 30, SIGNIFICANT EVENTS AFTER JUNE 30 There were no significant events after June 30. OUTLOOK The successful development of the OSR-Halliday field in East Texas is already a milestone in Activa s history. Our aim is to now build on that success by creating a larger portfolio of projects with both vertical and horizontal drilling potential in order to generate stronger growth at Activa. We have outlined the projects in this report with which we seek to achieve that goal. As a result of the new OSR-Halliday wells our 2013 revenues will be materially stronger than H1. Our revenues already exceeded EUR 600,000 in July and August, double the levels during Q1. We expect 2013 to be the third consecutive year of growth at Activa with annual revenues increasing approx. 15 % y-o-y. This figure is subject to well performance in Q4 (including the new Project X well) and changes in the USD exchange rate and oil and gas prices. With that, we will have generated 80 % growth within three years in addition to 117 % growth in proven oil reserves. EBITDA and cash flow will also substantially improve during the second half of 2013, leading to full year growth rates that exceed revenue growth. With OSR-Halliday and the other project initiatives outlined in this report Activa is positioned to achieve higher growth rates in the coming years. We will be actively drilling in the coming months. 12

13 Drilling Activas first vertical well at Project X (July 2013) 14

14 C O N S O L I D A T E D I N C O M E S T A T E M E N T (Euro) JUN 30, 2013 JUN 30, 2012 SALES REVENUES 2,129,557 2,414,324 OTHER OPERATING INCOME 3, ,781 2,133,026 2,553,105 OPERATING EXPENSE COST OF PRODUCTION -739, ,853 PERSONNEL EXPENSES -631, ,262 DEPRECIATION -694, ,459 OTHER OPERATING EXPENSES -537, ,722-2,602,645-2,515,296 OPERATING RESULT -469,619 37,809 FINANCIAL RESULT -308, ,800 PROFIT/LOSS BEFORE TAXES -777, ,991 TAXES ON INCOME AND EARNINGS NET PROFIT/LOSS -778, ,991 RESULT PER SHARE (UNDILUTED) RESULT PER SHARE (DILUTED)) C O N S O L I D A T E D B A L A N C E S H E E T (Euro) A S S E T S JUN 30, 2013 JUN 30, 2012 FIXED ASSETS MINING RIGHTS, DRILLING AND DEVELOPMENT COSTS 12,817,576 11,211,318 PROPERTY AND EQUIPMENT 58,197 77,341 12,875,773 11,288,659 ACCOUNTS RECEIVABLE 1,582,994 1,597,831 SECURITIES 1 1 LIQUID ASSETS 69,819 1,390,704 1,652,814 2,988,536 TOTAL ASSETS 14,528,587 14,277,195 L I A B I L I T I E S SHAREHOLDER S EQUITY CAPITAL STOCK 5,203,833 5,178,833 CAPITAL RESERVES -1,512, ,989 ANNUAL PROFIT/LOSS -778, ,991 2,912,976 4,552,853 LONG-TERM LIABILITIES FINANCIAL DEBT 9,820,618 8,181,900 SHORT-TERM LIABILITIES ACCOUNTS PAYABLE 888, ,525 PROVISIONS 503, ,539 OTHER SHORT-TERM LIABILITIES 402, ,378 1,794,993 1,542,442 TOTAL LIABILITIES 14,528,587 14,277,195 14

15 GENERAL INFORMATION REGISTERED OFFICE Hessenring Bad Homburg Germany Tel Fax MANAGEMENT BOARD Leigh A. Hooper, Samerberg, Germany SUPERVISORY BOARD Walter Blumenthal (Chairman), Bad Homburg, Germany Axel Vedder, Bad Homburg, Germany Dr. Gerd Escher, Gelsenkirchen, Germany SENIOR PERSONNEL John W. Hayes, President, Activa Resources, LLC, San Antonio, Texas Douglas Coyle, Chief Geologist, Activa Resources, LLC, San Antonio, Texas AUDITORS Mittreu GmbH, Königstein im Taunus, Germany Padget Stratemann & Co, LLP, San Antonio, Texas INVESTOR RELATIONS GFEI AG, Frankfurt ATTORNEYS BEITEN BURKHARDT Rechtsanwaltsgesellschaft mbh, Frankfurt, Germany WEBSITE 15