Note: The following is an English translation of the Japanese-language originalApril 28, 2022
Company Name:Japan Petroleum Exploration Co., Ltd. (JAPEX)Securities Code:

1662 (Prime Market of the Tokyo Stock Exchange)

Representative:

FUJITA Masahiro, Representative Director and President

Inquiries:

Corporate Communication OfficeTEL:+81-3-6268-7110

Notice of Financial Forecasts Revision,
Recognition of Non-operating Income, and Reversal of Deferred Tax Assets

Japan Petroleum Exploration Co., Ltd. (JAPEX) hereby revised its consolidated financial forecasts for
FY2022/3 disclosed on February 9, 2022, based on our recent business trends and performance. We also
recognized non-operating income and reversal of deferred tax assets for FY2022/3.
1. Financial Forecasts Revision(1) Revision to consolidated forecasts for FY2022/3 (April 1, 2021 - March 31, 2022)

Profitattributableto owners ofparent

Net income
per share

31,972(39,029)(687.28)

19,80943,674(30,988)(545.64)

13,391

3,641

11,702

8,041

5.7

22.5

36.6

-

240,078

4,192

10,001(2,725)Net sales

OperatingprofitOrdinary
profit(Millions of yen)

(Millions of yen)

(Millions of yen)Previous forecasts (A)235,749

16,168

Revised forecasts (B)249,140

Difference in amount (B - A)
Rate of change (%)(Reference) FY 2021/3(Millions of yen)

(Yen)

(47.73)

Note: FY=Fiscal Year (FY2022/3, for instance, means 12 months ending March 31, 2022)(2) Reasons of revision
Compared to the previous forecasts on February 9, 2022, net sales and operating profit are expected to increase,mainly due to increase in crude oil price and electricity spot market price.
Ordinary profit is expected to increase mainly due to an increase in foreign exchange gains, referring in 2.
Net loss attributable to owners of parent is expected to narrow due to the recordings as follows: (1)extraordinary gains disclosed in "Notice Regarding Dissolution of a Subsidiary, Waiver of Claims, and Posting ofExtraordinary Income (gain on debt forgiveness)" on March 22, 2022, (2) extraordinary losses disclosed in "NoticeRegarding Completion of liquidation of a subsidiary and recording of extraordinary losses" on the same date, (3)extraordinary losses related to the Fukushima earthquake on March 16, 2022, and (4) extraordinary losses
related to the reversal of deferred tax assets referring in 3.
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(3) Reference[Crude Oil Price (CIF)](USD/bbl)

Previous

RevisedAverage from April to December 2021 (actual)70.28 Average from April 2021 to March 2022(actual)

January to March 2022 (forecast)

70.00[Exchange Rate]

73.28(JPY/USD)

Previous

RevisedAverage from April to December 2021 (actual)109.96 Average from April 2021 to March 2022(actual) 111.20

January to March 2022 (forecast)110.00Note) The aforementioned forecasts are based on the current available information and the actual performances and other results
may differ materially due to various factors in the future.

2. Recognition of Non-Operating Income
We already recorded a foreign exchange gain of 5.1 billion yen in the first nine months of the fiscal year ending
March 31, 2022. In addition, due to the recent change in exchange rates, we expect to record a foreign exchange
gain of 4.9 billion yen in the fourth quarter of the fiscal year ending March 31, 2022. As a result, we expect torecord a foreign exchange gain of 10 billion yen in non-operating income for the fiscal year ending March 31,2022.
3. Reversal of Deferred Tax Assets
In order to respond quickly and flexibly to changes regarding our business environment such as the furtheracceleration of global decarbonization, we formulated and disclosed the mid- to long-term strategy "JAPEXManagement Plan 2022-2030" on March 28, 2022, with the basic policy to improve profitability and build abusiness foundation for 2030 and beyond.
Based on a careful consideration of the future collectability of deferred tax assets in light of the medium- tolong-term crude oil price and cash flow outlook in the management plan, we have decided to reverse
approximately 7.5 billion yen of deferred tax assets and to report in income taxes-deferred in both the nonconsolidated and consolidated financial results for the fourth quarter of the fiscal year ending March 31, 2022.
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