Note: The following is an English translation of the Japanese-language original.

May 14, 2024

Company Name: Japan Petroleum Exploration Co., Ltd. (JAPEX)Securities Code: 1662 (Prime Market of the Tokyo Stock Exchange)
Representative:
Michiro Yamashita, Representative Director and President
Inquiries:
Corporate Communication OfficeTEL:+81-3-6268-7110

Re-establishment of compensation limits
for Performance-linked Share-based Compensation Plan
Japan Petroleum Exploration Co., Ltd. (JAPEX) has received approval for the introduction of aperformance-linked share-based Compensation Plan called the “Board Benefit Trust (BBT) “ (hereinafter “thePlan”) for directors excluding outside directors and Executive Officers who don’t concurrently serve asDirectors (hereinafter collectively referred to as “Directors, etc.”) at the 50th Annual General Meeting ofShareholders on June 26, 2020, and the Plan has been implemented to date.
JAPEX resolved to review the Plan and re-establish the compensation limits for the Plan at the Board ofDirectors held today. Therefore, JAPEX has decided to submit a proposal for its re-establishment to the 54thOrdinary General Meeting of Shareholders held on June 26, 2024 (hereinafter “the Shareholders’ Meeting”)
as follows.
1.

Background and the Purpose of Review
JAPEX has introduced the Plan to further clarify the linkage between compensation for the Directors, etc.
and JAPEX’s corporate performance and share value, and to ensure that not only the benefits of increases
in share prices but also the risk of decrease in share prices is shared between Directors, etc. and theshareholders, in order to further motivate Directors, etc. to contribute to the improvement of the businessperformance and corporate value over the medium-to-long term. To make the Plan as an appropriate
incentive to enhance its corporate value over the medium-to-long term and to further promote value sharing
with shareholders, JAPEX has decided to review this system and submit a proposal to the Shareholders’Meeting to re-establish the compensation limit for the Plan. Specifically, considering the abovementioned
purpose, JAPEX will review the maximum number of points per fiscal year. In conjunction with the review,
taking into consideration the impact of stock price fluctuations on the number of shares to be acquired bythe Trust, JAPEX will not set an upper limit on the amount of money to be contributed to the Trust and will
determine a specific calculation method for the amount of compensation, etc. under the Plan.

2.

Reference information for the Plan
(Underlines indicate major changes from the current Plan)(1) Outline of the Plan
The Plan is a performance-linked share-based compensation plan under which JAPEX’s shares areacquired through a trust, using money contributed by JAPEX as the financial funds (hereinafter thetrust that is established based on the Plan is referred to as “the Trust”), and Directors, etc. are provided
with the JAPEX’s shares and an amount of money equivalent to the market value of the JAPEX’s shares(hereinafter referred to as “JAPEX’s Shares, etc.”) through the Trust, in accordance with the Rules on
Provision of Shares to Officers established by JAPEX. Directors, etc. shall receive the JAPEX’s Shares,etc. upon their retirement from office, in principle.
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<Structure of the Plan>(1) Establishment of Rules on
Provision of Shares to Officers(2) Entrustment of money(3) Acquisitionof shares(4) Granting of points(5) Non-exercise ofvoting rights[Trustee]Mizuho Trust & Banking Co., Ltd.
(Re-trusted to theCustody Bank of Japan, Ltd.)JAPEX’s shares

Instructions on
non-exercise of voting rights(6) Provision ofJAPEX’s Shares, etc.

Directors, etc.

Trust administrator[Beneficiary]
Directors, etc. who have retired
and satisfy the beneficiary
requirements(1) JAPEX will establish the Rules on Provision of Shares to Officers within the scope of the framework approved inthis proposal.
(2) JAPEX will entrust money within the scope approved in this proposal.
(3) The Trust will acquire JAPEX’s shares through the stock market on which JAPEX’s shares are listed, or by way ofsubscribing to a disposition of JAPEX’s treasury shares, using the money entrusted as in (2) above as the funds.
(4) JAPEX will grant points to Directors, etc. in accordance with the Rules on Provision of Shares to Officers.
(5) The Trust will not exercise voting rights of JAPEX’s shares held in the Trust in accordance with the instructions ofthe trust administrator, who is independent from JAPEX.
(6) The Trust will provide those individuals who retire from office as Directors, etc. and fulfill the beneficiary eligibility
requirements stipulated in the Rules on Provision of Shares to Officers (hereinafter referred to as the“Beneficiaries”) with JAPEX’s shares, according to the number of points granted to the relevant Beneficiary.
However, if a Director, etc. fulfills the requirements stipulated in the Rules on Provision of Shares to Officers,
JAPEX will provide the Director, etc. with money equivalent to the market price of JAPEX’s shares, for a certain
proportion of the number of granted points.
(2) Persons eligible for the PlanDirectors (excluding Outside Directors) and Executive Officers who do not concurrently serve asDirectors.
(3) Trust period
From August 2020 until the termination of the Trust. (With regard to the trust period, we shall not
set a specific date for the termination of the Trust, and the Trust will continue as long as the Plancontinues. The Plan will terminate upon the delisting of JAPEX’s shares or abolition of the Rules on
Provision of Shares to Officers, or in certain other cases.)(4) Trust amount (amount of compensation, etc.)
JAPEX has introduced the Plan for the three fiscal years from the fiscal year ended March 31, 2021
2 / 5Acquisition of beneficiary rights[Trustor]
JAPEX

to the fiscal year ended March 31, 2023 (hereinafter, such three-fiscal-year period is referred to as the“Initial Period,” while the Initial Period and each five consecutive fiscal year period following the Initial
Period are respectively referred to as the “Applicable Period”), as well as each Applicable Period that
follows. With respect to the Initial Period, JAPEX has contributed 141 million yen to the Trust as funds
for the acquisition of JAPEX’s shares to provide Directors, etc. with JAPEX’s shares, etc. under the Plan,and established the Trust, the beneficiaries of which are Directors, etc. who satisfy the requirements.
The Trust acquired 77,600 shares of JAPEX’s stock for the Initial Period, using money entrusted by
JAPEX as the source of funds.
Furthermore, after the expiration of the Initial Period, in principle, for each Applicable Period, JAPEX
will reasonably estimate the number of shares necessary to provide benefits to Directors, etc. and makeadditional contributions to the Trust of the funds deemed necessary for the Trust to acquire the sharesin advance under the Plan. However, in the case that such additional contributions are made, if JAPEX’sshares (excluding the number of the JAPEX’s shares that have not yet been provided to Directors, etc.
equivalent to points granted to them for each Applicable Period up to the immediately preceding
Applicable Period) and money remain in the Trust (such shares and money are collectively referred toas the “Remaining Shares, etc.”), JAPEX will use Remaining Shares, etc. to fund the benefits under thePlan in subsequent Applicable Period, and calculate the amount of the additional contribution after
taking into account the Remaining shares, etc.
Moreover, JAPEX shall disclose information in a timely and appropriate manner, in the event of adecision to make additional contributions.
(5) Acquisition method of JAPEX’s shares and number of shares to be acquired by the Trust
The Trust shall acquire the JAPEX’s shares through the stock market on which JAPEX’s shares arelisted, or by way of subscribing to a disposition of JAPEX’s treasury shares, using the money contributedin accordance with (4) above as the funds.
Since the maximum number of points to be granted to Directors, etc. is 45,400 points per fiscal year
as described in (6) below, the maximum number of JAPEX’s shares to be acquired by the Trust for eachApplicable Period is 227,000 shares.
The details of the acquisition of JAPEX’s shares by the Trust shall be disclosed in a timely andappropriate manner.
(6) Calculation method of the number of JAPEX’s Shares, etc. to be provided to Directors, etc.
Based on the Rules on Provision of Shares to Officers, JAPEX shall grant Directors, etc. a specifiednumber of points determined after having given consideration to factors related to the respective fiscalyears, such as their positions and business performance of JAPEX. The total number of points granted
to Directors, etc. per fiscal year shall be limited to 45,400 points (including 18,300 points for Directors).
This was decided based on a comprehensive consideration of the current level of officer compensation,
as well as trends and future prospects, etc. for the number of Directors, etc., and was judged to beappropriate.
Each point granted to the Directors, etc. shall be converted into one common share of JAPEX at thetime of the provision of JAPEX’s Shares, etc., as explained in (7) below (provided, however, in the casewhere JAPEX’s shares become the subject of a share split, allotment of shares without contribution, orconsolidation of shares, etc. after this proposal is approved, the limit on the number of points,accumulated number of points granted, or the conversion rate shall be adjusted in a reasonable manner,in proportion to the relevant ratio, etc.).
The number of shares equivalent to the maximum number of points granted to Directors, etc. per
fiscal year (45,400 shares), as a percentage of the total number of issued shares (as of March 31, 2024;
excluding treasury shares) is approximately 0.09%.
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The number of points for Directors, etc. to be used as the basis for the provision of JAPEX’s Shares,etc. described in (7) below shall be the accumulated points granted to Directors, etc. by the time of theirretirement from office, in principle (hereinafter referred to as the “Number of Points Held” for the points
calculated in this manner).
(7) Provision of the JAPEX’s Shares, etc.
If a Director, etc. retires from office and fulfills the beneficiary requirements stipulated in the Rules
on Provision of Shares to Officers, the Director, etc. may receive the provision of JAPEX’s shares fromthe Trust after his/her retirement from office, in accordance with the Number of Points Held as
explained in (6) above, in principle, by completion of the prescribed procedures to become a beneficiary.
However, if the requirements stipulated in the Rules on Provision of Shares to Officers are fulfilled, aDirector, etc. can receive monetary provisions equivalent to the market value of JAPEX’s shares, in placeof provision of JAPEX’s shares, for a certain proportion. In this case, the Trust may sell JAPEX’s sharesin order to make the monetary provisions.
Even Directors, etc. who have been granted points may not acquire all or part of the right to receive
benefits if any of the matters stipulated in the Directors' Share Benefit Regulations arise.
(8) Exercising voting rights
Voting rights of JAPEX’s shares held in the Trust shall not be exercised, without exception, at theinstruction of the trust administrator. This is intended to ensure that the exercise of voting rights ofJAPEX’s shares held in the Trust is neutral with respect to the management of JAPEX.
(9) Handling of dividends
The dividends of JAPEX’s shares held in the Trust shall be received by the Trust, and shall be usedprimarily for acquisition of JAPEX’s shares, or for trust fees to the trustee pertaining to the Trust. Uponany termination of the Trust, any dividends, etc. remaining in the Trust shall be provided to the Directors,etc. in office at that point in time in a proportionate manner, depending on the number of points
respectively held.
(10) Handling of the termination of the Trust
The Trust will terminate in cases such as the delisting of JAPEX’s shares or abolition of the Rules
on Provision of Shares to Officers.
With regard to JAPEX’s shares among the residual assets of the Trust at the time of termination ofthe Trust, JAPEX plans to acquire all such shares without consideration, and cancel them by resolutionof the Board of Directors. Of the residual assets of the Trust at the time of termination of the Trust, thebalance of said money excluding money provided to Directors, etc. in accordance with (9) above, will be
provided to JAPEX.

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[Outline of the Trust](1) Name:(2) Trustor:(3) Trustee:(4) Beneficiaries:(5) Trust administrator:(6) Type of trust:(7) Date of conclusion of trust agreement:(8) Date of entrustment of money:(9) Period of trust:

Board Benefit Trust (BBT)
Japan Petroleum Exploration Co., Ltd. (JAPEX)
Mizuho Trust & Banking Co., Ltd.
(Re-Trustee: Custody Bank of Japan, Ltd.)
Directors, etc. who have retired and satisfy the beneficiary
requirements stipulated in the Rules on Provision of Shares toOfficers
Planned to call for the selection of a third-party with no vested
interest in JAPEX
Money trust other than cash trust (third-party beneficiary trust)August 25, 2020
August 25, 2020
From August 25, 2020 until termination of the trust(The trust will continue, without a specific termination date, as longas the Plan continues.)###5 / 5