ADX ENERGY LTD — Capital/Financing Update 2008

Aug 27, 2008

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ASX Release 28 August 2008

Capital Raising

The Board is pleased to announce that the Company has reached agreement to place up to 22,222,222 ordinary fully paid shares at an issue price of 9 cents per share to raise proceeds of up to A$2.0 million from sophisticated investors as defined under the Corporations Act.

The purpose of the fund raising is to enable the completion of the acquisition of the Pantelleria Permit offshore Italy and working capital.

The completion of these acquisitions will enable AuDAX to commence exploration of both the Pantelleria Permit and adjoining offshore Kerkouane Permit in Tunisia.

Pantelleria

Previous exploratory work on Pantelleria has identified several leads and prospects. The most promising prospect can now be matured by AuDAX to a drill ready status over the next few months. In addition to the technical work, AuDAX will have to complete the required permit administration, receive environmental approvals for offshore drilling and complete the tendering process for an offshore rig. AuDAX has engaged a drilling management consultant to prepare for this high impact exploration and appraisal drilling campaign.

Kerkouane

Meanwhile AuDAX has identified a large number of prospects and leads in the adjoining Kerkouane Permit and confirmed a gas condensate field appraisal project. The total P50 unrisked recoverable resource potential in the permit could exceed one billion barrels of oil equivalent. AuDAX has engaged a drilling management consultant to prepare for a high impact exploration and appraisal drilling campaign next year and continues to evaluate the remaining prospects and leads inventory.

The Permit has a two (2) year exploration period to 22 February 2010. Acquisition of 400km 2D seismic and spudding of one well is required in the two year period.

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Included in the Kerkouane permit is the Dougga gas condensate discovery that was made by Shell in 1981 which lies immediately northwest of the abandoned Tazerka oilfield, also discovered by Shell in the early 1980s.

AuDAX is the contractor under the permit and operates on behalf of Enterprise Tunisienne d’Activités Petrolieres (“ETAP”) and Kairiki.

For further details please contact:

Gary Roper Wolfgang Zimmer Chairman Managing Director 61 (8) 9328 4622 43 (0) 676 358 1214

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Offshore Tunisian and Italian permit map

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