ADX ENERGY LTD — Capital/Financing Update 2011

Feb 10, 2011

11 February 2011

TUNISIAN OPERATIONAL UPDATE Sidi Dhaher Well Drilling Preparations

ADX Energy Ltd (ASX:ADX) is pleased to report that preparations for the commencement of drilling operations on the Company’s operated well are progressing according to plan. Site preparations have been completed and all key service and supply contracts are in place.

Pre testing of rig components before assuming contractual responsibility has commenced and some repairs are being undertaken prior to mobilisation. The company continues to monitor the security situation and subject to final equipment readiness, expects to decide on rig mobilisation next week with a view to spudding the well during February as previously indicated.

As previously announced, ADX has already secured farm-outs with Gulfsands Petroleum Plc, Xstate Resources Ltd and Verus Investments Ltd which are expected to fully fund ADX’ share of drilling costs for the Sidi Dhaher well.

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. A summary of the Chorbane Permit and the Sidi Dhaher prospect is attached to this ASX release.

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 +43 (0) 1641 0189 +61 (08) 9226 2822

www.adxenergy.com.au

Chorbane Permit Summary

The ADX operated Chorbane Exploration Permit is located mainly onshore central Tunisia. The permit is relatively underexplored containing prospects and leads with multiple objectives and both oil and gas potential. Chorbane is favorably located with regard to infrastructure for both oil and gas export due to its proximity to a number of producing fields, oil and gas pipelines and the port of Sfax. Several proven petroleum systems are evidenced by fields adjacent to and on trend that produce or have tested oil, condensate and gas generated and trapped in Eocene to Jurassic age rocks.

The largest structure mapped and currently the most highly ranked prospect is the multi-reservoir Sidi Dhaher prospect. The structure has significant closure at Eocene through to the Lower Cretaceous reservoirs that provide significant resource potential. Of special interest is the large closure (+25km[2] ) at the Abiod reservoir level that is analogous to the Sidi-El Kilani field which to date has produced approximately 50 mmbls of oil from the same horizon and is on the same structural trend approximately 30 kilometers north of Sidi Dhaher prospect.

Technical work on the first prospect to be drilled, the Sidi Dhaher prospect, has identified a Direct Hydrocarbon Indicator (DHI) in the Eocene age Metlaoui Formation strata that significantly enhanced the expectation of success and upgraded the prospect to a ready to drill status. The multi-target prospect has estimated prospective resources of 175 billion cubic feet of recoverable gas at the Metlaoui level and 44 million barrels of oil for the Abiod Formation. Additional targets also exist including the Douleb and Bireno reservoir Members of the Aleg Formation that produce oil and gas in the Guebiba field immediately east of the permit.

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Maps showing Chorbane block outlines and infrastructure (left map) and Sidi Dhaher Prospect (see star symbol on right map) in relation to proven reservoir fairways inside which the DHI over Sidi Dhaher was mapped.

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Seismic lines through Sidi Dhaher prospect also showing flat spot at the shallow Eocene nummulitic limestone target. Deeper prospective targets such as the Abiod reservoir will also be penetrated.