Melbana Energy Limited signed a binding definitive farmout agreement with respect to its Block 9 Production Sharing Contract (Block 9 PSC) in Cuba. The deal will see the Alameda (140 million bbl target) and Zapato (95 million bbl target) prospects drilled by November 2019; a third well by July 2020, and it means MAY will be fully carried for 100% of all activities and costs for remainder of term of Block 9 PSC (20+ years). The binding agreement is with Anhui Modestinner Energy Co. Ltd. (AMEC), a wholly owned and guaranteed subsidiary of Anhui Guangda Mining Investment Co. Ltd. (AGMI), and follows on from the Letter of Intent signed by Melbana and AGMI. Under the terms of the deal, AMEC will fully fund all costs associated with the Block 9 PSC from 1 January 2019, including the drilling of at least three wells. The first two of these wells will be drilled by November 2019 on Melbanas preferred exploration targets Alameda and Zapato. In the event of a discovery, the third well may be either an appraisal well on Alameda or Zapato or, if no discovery, an exploration well on the Piedra prospect. In all cases, the third well will be drilled prior to July 2020. AMEC is also responsible for providing any required guarantees and will provide Melbana with 12.5% of any Profit Oil. In the event of a development, Melbana will recoup its Block 9 back costs (approx. USD 3.5 million) over time from the Cost Oil in proportion to its relative spend versus AMEC. The Alameda Prospect is currently the ranked exploration target in Block 9 PSC. Alameda is a large structure located in the western part of Block 9 and is in a similar structural position to the Varadero field, approximately 35km away. The proposed Alameda-1 well which will test a combined exploration potential of over 2.5 billion barrels Oil-in-Place and 140 million barrels of recoverable oil on a 100% unrisked, best estimate basis and 279 million recoverable barrels aggregate high side potential. The primary objective at Alameda ranges in depth from approximately 3,000 to 3,700 metres. The presence of oil in the Alameda structure is supported by the Marti-5 well drilled within the prospect closure in a down flank position nearly 30 years ago and which recovered 24 API oil and had numerous oil shows extending over a 850 metre gross interval from the lower sheet section.