ADX ENERGY LTD — Capital/Financing Update 2011

Jan 11, 2011

12[th] January 2011

ADX Secures Drilling Rig of Sidi Dhaher Prospect

ADX Energy LTD (ASX:ADX) is pleased to announce that it has signed a Letter of Intent (“LOI”) with Challenger Limited to provide Drilling Rig Services for the Sidi Dhaher well in the Chorbane Exploration Permit onshore Tunisia. Challenger will be providing the RIG 37 onshore drilling unit to conduct the work programme.

Subject to receiving final approvals from the Tunisian Authorities, ADX will spud the exploration well to test the Sidi Dhaher prospect during the first week of February.

As previously announced ADX has 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 large, 2,428 square km 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	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 multireservoir 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 (+25 sq km) 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 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 to the 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 showing also flat spot at the shallow Eocene nummulitic limestone target. Deeper prospective targets such as the Abiod reservoir will also be penetrated.

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