ADX ENERGY LTD — Capital/Financing Update 2011

Jul 17, 2011

18 July 2011

ADX awarded exploration permit offshore Italy

ADX Energy Ltd ( ASX:ADX ) is pleased to announce that the award process for the offshore exploration permit d 364 C.R-.AX in Italian waters has been completed (see map below). The adjacent permit d 363 C.R-.AX is under application by ADX.

The awarded permit is contiguous to ADX’s offshore Tunisian Kerkouane permit which contains the Dougga gas condensate discovery and the Lambouka gas discovery. ADX is the operator of the permit and holds a 100% interest.

Previous exploration work within the Pantelleria and Kerkouane permits has identified a number of prospects and leads as well as prospective hydrocarbon fairways which have previously remained undetected. Recently acquired geophysical data has confirmed this interpretation.

These highly prospective fairways trend into the offshore areas covered by the new permit. The permit has not seen modern seismic techniques but success in the area has attracted the recent interest of majors such as Shell and Repsol.

High prospectivity combined with the excellent fiscal terms in Italy represents ADX’s ongoing strategy of focusing its resources on core areas which offer proven prospectivity, materiality and potential for quick commercialization.

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For further details please contact:

Wolfgang Zimmer Ian Tchacos Managing Director Chairman +43 (0)1 6410 189 +61 (0)8 9226 2822 www.adxenergy.com.au

Technical Background

The two Italian offshore blocks ( Figure 1 ) are situated in the so called “Terravecchia Foredeep” in front of the Tunisian Atlas thrust front, a geological sub-province of the extensive Italian foredeep and foreland area. This prolific hydrocarbon province hosts a large number of Italy’s oil and gas fields, starting in the Northern Italian Po valley, continuing along the entire Adriatic Sea and through onshore and offshore Sicily into northern Tunisia. For a number of reasons more related to the vicinity of an international boundary than petroleum geology, very little seismic and drilling activity has been undertaken in the past in the areas close to the international border with Tunisia. With recent discoveries made by Edison and ENI in offshore Sicily and the very recent large land – grab by Shell and Repsol in blocks adjacent to the ADX acreage in both Italy and Tunisia, activity levels in the area are likely to increase significantly. ADX is now in a very favorable position since it now holds contiguous licenses across the international boundary in both Tunisian and Italian waters.

Shell and ADX have already acquired approximately 2000 Km[2] leading edge PGSGeostreamer technology 3D seismic surveys in their respective Tunisian and Italian licenses. As a result, ADX has now identified a number of large drillable prospects in its’ Kerkouane block on a geological trend which continues into the offshore Sicily area in Italy. This trend contains large thrust related anticline prospects such as the ones identified in ADX’s Kerkouane block next to the ADX operated Dougga gas condensate discovery ( Figure 2 ), already proven to be successful by the Nilde oil field ( Figure 3 ). Nilde has produced approximately 25 mmbbls of light oil from a high productivity reservoir. The encouraging results from Lambouka-1 also in terms of a high quality reservoir intersection in a similar interval, have further enhanced the prospectivity of the area.

In addition to this already proven play, the foredeep has the potential to contain Pliocene gas fields in front of the thrust nappes in analogy to the recently made multi Tcf Panda, Cassioppea and Argo discoveries offshore Southern Sicily. The northern part of the block is on trend with the complex billion barrel Val d’Agri/Tempa Rossa oil fields of the Southern Apennine thrust belts. These plays require modern 2D and 3D seismic data, which until very recently was not available in the area.

ADX will now start the evaluation of the license with seismic data purchases, seismic acquisition and dependent on further studies, the drilling of a first well.

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----- Start of picture text ----- D 363 CR-AXD 364 CR-AXTUNISIA ITALY----- End of picture text -----

Figure 1 Regional setting in the oil and gas rich foreland area. ADX licenses in red.

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----- Start of picture text ----- NW Lead Dougga West Prospect Dougga Field SEKerkouane-Tunisia 3D seismic section----- End of picture text -----

Figure 2 3D seismic section through ADX – Tunisian Kerkouane license.

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----- Start of picture text ----- NW Nilde Field SE----- End of picture text -----

Figure 3 Geological cross section through the ADX - Italian license and application area. Source: Unmig/P. Casero.