BLACK ROCK MINING LIMITED — Capital/Financing Update 2011

Jul 24, 2011

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25 JULY 2011

ASX Announcement

LAUREL PROJECT FOOTPRINT INCREASED SIGNIFICANTLY (ASX: NSE)

HIGHLIGHTS

• New Standard awarded Seven Lakes SPA in the Canning Basin Significant additional acreage immediately adjacent to EP417

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• Increases Laurel Project footprint by approximately 87% to 1.46m gross acres

• Seven Lakes SPA prospective for gas and condensate in Laurel and Anderson formations

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• Large potential for unconventional gas resources (both tight gas and shale gas) Increasing activity in the Laurel play throughout the Fitzroy trough

• New Standard and Green Rock Energy Limited ( Green Rock ) pursuing SPA under agreed AMI New Standard 60% and Green Rock 40%, paying their own interest

New Standard Energy Limited ( New Standard ) is pleased to announce that it has been offered a Special Prospecting Authority ( SPA ) for the Seven Lakes area in the northern Canning Basin. This new acreage area is immediately adjacent to New Standard’s EP417 exploration permit (and Lawford #1 well) and extends the Company’s acreage in the emerging Laurel Project by approximately 87% to 1.46m gross acres.

Upon grant, the SPA will entitle New Standard to carry out certain exploration work, subject to various approvals, over a 6 month period. Following the initial 6 month exploration program, New Standard will have an exclusive right for an additional 6 months to exercise an attaching option to apply for an Exploration Permit over the most prospective part of the acreage.

Pursuant to an agreement entered into with Green Rock in March this year the parties agreed to jointly acquire acreage within an Area of Mutual Interest ( AMI ) within the Fitzroy Trough in the Canning Basin. Under the terms of this agreement New Standard is entitled to a 60% working interest and Green Rock a 40% working interest in any jointly pursued exploration acreage awarded within the AMI and each party will pay its share of exploration costs. The Seven Lakes SPA is the first acreage to be acquired under the terms of this AMI.

The Seven Lakes SPA is a valuable addition to New Standard’s Laurel Project and provides an expanded footprint in this exciting and emerging resource play. The Laurel Project (including the new Seven Lakes SPA) is considered by New Standard to be prospective for significant hydrocarbon resources with the primary targets being the tight sands and shales of the Laurel and Anderson formations. Significant progress is being made on this play as evidenced via recent successes announced for both the Yulleroo 2 and Valhalla 2 wells (Buru Energy) that have flowed gas to surface from the Laurel formation. Buru Energy has also announced its intention to further test these target formations with the drilling of the Ungani and Paradise prospects later this year.

These same Laurel and Anderson formations are also expected to be tested by New Standard through the deepening of the Lawford #1 well on EP417 during the next few months, subject to finalising access and contractual arrangements.

The highly prospective nature of the Laurel formation is supported by recent successful exploration results together with publicly available information, studies and reviews undertaken by experienced independent consultants with global expertise. In New Standard’s views the Laurel Project has the potential to host very substantial unconventional hydrocarbon resources – both tight gas and shale gas.

New Standard Energy Ltd. | ACN 119 323 385 Level 3, 33 Richardson St. West Perth WA 6005 | PO Box 1542. West Perth WA 6872 T: + 61 8 9481 7477 | F: +61 8 9486 7670 | www.newstandard.com.au

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The Lawford #1 well is expected to be deepened during the next few months and represents a large structural target that will test the Anderson and Laurel formations. The Lawford structure could host up to 500 BCF of gas in place within the confines of the large structural closure and important information will also be gathered to enhance the vast potential for regional unconventional resources that are not dependent on either structure or closure.

Additional information, including maps depicting the Seven Lakes SPA and EP417 acreage together with the emerging regional Laurel play, is included in Appendix 1.

New Standard Managing Director Mr Sam Willis said “The Seven Lakes SPA significantly increases our Laurel Project acreage and provides a highly prospective extension to an exciting emerging resource play of substantial potential size in the Canning Basin.”

“The Laurel play is growing quickly as evidenced by Buru Energy’s recent success at the Valhalla 2 well and significant resources are being directed into exploring and appraising the resource potential of the Laurel sands and shales.

“Our acreage will clearly benefit from these positive results and the ongoing work regionally and we expect to advance our exploration of the target formations with the planned Lawford #1 deepening during the next few months”, added Mr Willis.

“The Laurel Project now represents the second sizeable resource play in the Canning Basin for New Standard alongside the Company’s major Goldwyer Project. In light of all the activity currently planned for the next couple of years in the basin, the Laurel Project provides our shareholders with exposure to another exciting emerging project with substantial potential scale.”

-ENDS-

For further information, please contact:

Sam Willis Cameron Morse Managing Director Ph: + 61 8 9481 7477 Ph: + 61 8 9386 1233 email: swillis@newstandard.com.au email: cameron.morse@fd.com

Competent Person: The information in this announcement is based on information reviewed by Dr Mark Hagan (BSc Hons, PhD) who is a Petroleum Geologist and Geophysicist with more than 35 years experience in the industry. Dr Hagan is Technical Director of New Standard Energy and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

New Standard Energy Ltd. | ACN 119 323 385 Level 3, 33 Richardson St. West Perth WA 6005 | PO Box 1542. West Perth WA 6872 T: + 61 8 9481 7477 | F: +61 8 9486 7670 | www.newstandard.com.au

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APPENDIX 1 LAUREL PROJECT: ADDITIONAL INFORMATION AND MAPS

Laurel Shales and Tight Gas Sand Background

The Laurel formation is a sequence of tight sands, shales and siltstones of lower carboniferous age deposited in marginal marine environments. This is significant for the formation as a regional source rock. The Laurel formation is up to 1,000 metres thick in parts and extends over the majority of the Fitzroy Trough and as such it has the potential to contain significant volumes of hydrocarbons.

Other wells in the Fitzroy Trough have intersected similar sections of gassy tight sands and shales in the Laurel formation. This formation will become the focus of increasing exploration efforts over the next few years as it has the potential to be a major resource play for gas and associated liquids.

The following positive evidence regarding the potential of the Lower Anderson-Laurel tight gas play is also worth noting:

• The Valhalla 2 well flowing gas to surface from interbedded tight gas sands without reservoir stimulation

• The Yulleroo-1 and 2 wells have flowed gas to surface from interbedded tight gas sands indicating generation and migration of hydrocarbons within the Fitzroy Trough.

• Oil and gas shows while drilling the Anderson and Laurel Formations in several other wells in the Fitzroy Trough indicate consistent hydrocarbon generation within the Fitzroy Trough area with hydrocarbon storage capacity and gas content.

• Average core porosity measurements are on par with commercially successful tight sand reservoirs in North America.

• Clastic reservoir facies encased within interbedded shales provide the potential source of hydrocarbons and an effective regional seal.

Significant exploration activity including the drilling and appraisal of numerous wells is scheduled to be undertaken on this emerging play in 2011 and 2012.

New Standard Energy Ltd. | ACN 119 323 385 Level 3, 33 Richardson St. West Perth WA 6005 | PO Box 1542. West Perth WA 6872 T: + 61 8 9481 7477 | F: +61 8 9486 7670 | www.newstandard.com.au

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Figure 1: The Laurel Project including the new Seven Lakes SPA, EP417 and various prospective targets

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Figure 2: The large regional extent of the Laurel play and the current/planned exploration activity

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New Standard Energy Ltd. | ACN 119 323 385 Level 3, 33 Richardson St. West Perth WA 6005 | PO Box 1542. West Perth WA 6872 T: + 61 8 9481 7477 | F: +61 8 9486 7670 | www.newstandard.com.au

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Figure 3: The regional Laurel play illustrating the large scale of the prospective resources being pursued in the region

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About New Standard : New Standard Energy is an aggressive hydrocarbon developer with a mandate to explore for oil and gas. Its exploration and drilling program is active, well funded and extensive. The company’s exploration program is underpinned and complemented by targeted corporate activity to take advantage of opportunities and to build an extensive pipeline of exploration projects.

New Standard’s board has extensive technical and commercial experience in the oil and gas sector.

New Standard currently has cash resources of approximately $4.0m (including pre-paid exploration costs in the US) with this cash position to be further supplemented by EP417 farm-in payments and income being generated from the Colorado County Project in Texas. The Company is aggressively progressing its oil and gas exploration portfolio focused on the Canning Basin in Western Australia and the onshore Gulf Coast region in Texas including:

• 100% operated interest in EP’s 443, 450, 451, 456 in the Canning Basin subject to ConocoPhillips farm-in

• 100% operated interest in EPA’s 1/09-0, 2/09-0 and 5/09-0 in the Canning Basin subject to ConocoPhillips farm-in 65% operated interest in EP417 in the Canning Basin (diluting to 50%)

• 60% operated interest in 7 Lakes SPA in the Canning Basin

• 100% operated interest in the Merlinleigh project, onshore Carnarvon Basin Western Australia

• 32.5% working interest in the Colorado County Project, onshore Texas USA

• 38.5% working interest in the Moeller Project, onshore Texas USA

• 36% working interest in the Wharton County Project, onshore Texas USA

• 32.5% interest in a license for 1,000 square miles of 3D seismic data

The company is pursuing conventional hydrocarbons in the United States and conventional hydrocarbons and shale gas in Australia. In addition to the above New Standard has indirect exposure to a broad acreage position in the Canning Basin through a liquid 8.2% equity interest (15m shares) in listed Canning Basin explorer Buru Energy Ltd (ASX: BRU) and is actively assessing other opportunities to complement and expand its portfolio.

New Standard Energy Ltd. | ACN 119 323 385 Level 3, 33 Richardson St. West Perth WA 6005 | PO Box 1542. West Perth WA 6872 T: + 61 8 9481 7477 | F: +61 8 9486 7670 | www.newstandard.com.au