ADX ENERGY LTD — Capital/Financing Update 2011

Aug 24, 2011

25 August 2011

ADX: Sidi Dhaher Spud imminent

ADX Energy Ltd ( ASX:ADX ) is pleased to provide the following update on progress with preparations for drilling of the Sidi Dhaher well on the Chorbane licence, onshore Tunisia.

With the timely arrival of the choke line on the rig site and subsequent successful compliance testing, minor outstanding preparatory work should be finalized within the next few days. That also includes the expected arrival of the last critical spare items. ADX has now also mobilized well services such as mud-logging, mud engineering and cementing. The drilling contractor is also in the process of incorporating recommendations given by local authorities and the Labor Unions.

A pre spud meeting for the Sidi Dhaher-1 exploration well is planned for Friday 26[th] August.

Once the rig is fully commissioned and accepted as being compliant to spud by ADX, the drilling contractor will be on contractual day rate.

The Sidi Dhaher prospect is located in the 2,428km[2] large Chorbane Exploration Permit onshore central Tunisia near the port city of Sfax. It is surrounded by several producing oil fields and extensive oil and gas infrastructure.

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