Borealis Exploration Limited Interim Management Report for the Three Months Ended 31 December 2015 -

Expected Future Development of Borealis’s Business and Economic Results

Borealis intends to continue an 80% focus of its management time and 90% focus of its financial resources on commercializing the Chorus Motors and WheelTug technologies with the balance of its time and financial resources focused primarily on its other technology companies, including Avto Metals plc, Power Chips plc, Cool Chips plc, and, to a lesser extent, on certain of its other companies. Each of these technologies has successfully undergone tests in the nine months ended 31 December 2015 and, subject to receipt of additional funds, will undergo further testing and development in fiscal 2016 with a view toward commercialization in fiscal 2017.

Segment Reporting

The projects of the Borealis family of companies are all in development stage and, as such, no segment, division, subsidiary or other component has earned any revenue whatsoever.

Related Party Transactions

For the period ended 31 December 2015, there were no related party transactions that substantially influenced the economic results of Borealis or the Borealis family of companies. Nor were there any changes in related party transactions, which were mentioned in the consolidated annual report of Borealis for the year ended 31 March 2015 that could significantly affect the economic results of Borealis and its consolidated group in the nine months ended 31 December 2015.

Financial Position

Borealis did not have sufficient financing and facilities available for the foreseeable future as at 31 December 2015 and there have been no material changes in financial arrangements since the beginning of the financial year 2016 (i.e., 1 April 2015).

As at the date of this interim management statement, there have been no material events, transactions or changes regarding the financial position of Borealis other than those outlined in this interim management statement. Furthermore, the Board of Directors is not aware of any material events, transactions or changes regarding the financial position of Borealis, which have occurred since 1 April 2015 up to and including 15 February 2016, which is the date of publication of this report.

Borealis Statement

According to my best knowledge, this Interim Report for the nine months ended 31 December 2015 provides a true and fair view of the financial situation, business activities and the economic results of Borealis and of its consolidated group for the past nine months and about the prospects of the future development of the financial situation, business activities and the economic results of Borealis and of its consolidated group.

Borealis Exploration Limited

/s/ Dr. Rodney T. Cox

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By: Dr. Rodney T. Cox

Title: Chief Executive Officer and Chairman of the Board