ADX ENERGY LTD — Capital/Financing Update 2011

Aug 29, 2011

30 August 2011

ADX: Sidi Dhaher-1 Well – Operations Update #1

Activities since spud at 06:00 pm GMT, Friday 26 August 2011.

Please note ASX Release of 29 August 2011 incorrectly stated spud at 07:00 am GMT, Saturday 27 August 2011.

Successfully drilled the 16” hole section to a depth of 652 meters.

The current operation is preparing to RIH.

Weekly Operations Forecast:

Forecast operations during the coming week are as follows:

• Drill 16’’ hole to approximately 812 meters depth

• Run 13-3/8’’ casing and perform cement job

The Sidi Dhaher well is targeting an Eocene reservoir with estimated prospective resources of 175 billion cubic feet (5 billion m³) of recoverable gas and a Cretaceous reservoir with estimated prospective resources of 44 million barrels (5.9 million tons) of oil. Additional targets exist in the deeper Douleb and Bireno reservoirs that produce oil and gas in the Guebiba-El Hajeb field immediately east of the Chorbane permit.

Participant interests in the Sidi Dhaher -1 well will be as follows;

ADX Energy Ltd	40%	Operator
Gulfsands Petroleum Plc	40%	*
XState Resources Ltd	10%	*(ASX code: XST)
Verus Investments Limited	10%	*(ASX code: VIL)

Note: The respective participant interests in the Sidi Dhaher well and the Chorbane Permit are based on the completion of all farmin obligations.

For further details please contact :

Wolfgang Zimmer	Ian Tchacos
Managing Director	Chairman
+61 (08) 9226 2822	+61 (08) 9226 2822
www.adxenergy.com.au