BLACK ROCK MINING LIMITED — Capital/Financing Update 2011

Mar 16, 2011

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17 MARCH, 2011

ASX Announcement

NEW STANDARD SUCCESSFULLY SECURES EP417 FARM-IN (ASX: NSE)

Highlights

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• Farm-in partner secured to advance shale gas and tight gas drilling on EP417 including:

  • $750,000 payment to cover majority of New Standard’s costs for deepening Lawford#1

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• Commitment to fund 27.5% of Lawford #1 deepening on a promoted basis; and

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• Commitment to fund 22.5% of the costs of a second EP417 well on a promoted basis

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• Lawford #1 well to provide attractive drill target

  • Large conventional (500Bcf+) and unconventional prospectivity for tight gas/shale gas

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• Preparations and approvals process underway for deepening in Q3, 2011

  • Majority of infrastructure in place, drill rig negotiations well advanced

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• Exciting potential evident in broader Laurel play including liquids rich gas

New Standard Energy Ltd ( New Standard ) will move to complete the drilling of the Lawford #1 well in Western Australia’s Canning Basin in Q3 of 2011 after securing a second farm-in partner to provide exploration funding for its EP417 Permit.

Green Rock Energy Ltd ( Green Rock; ASX code: GRK ) has agreed to partner New Standard in EP417 by paying $750,000 in back costs and contributing 27.5% of the costs of drilling, coring, fracture stimulation, flow testing and planned completion of the Lawford #1 well located on EP417. In return Green Rock will earn a 15% per cent interest in EP417. Green Rock has also committed to fund 22.5% of the costs of a second (but yet to be agreed) well to earn an additional 5% in EP417. More details of the farm-in agreement, including caps on promoted expenditure, can be found at Appendix One.

New Standard will retain a significant 50% working interest (previously 65%) and operatorship in the permit and the $750,000 in cash payments will cover a majority of the expected costs for New Standard’s share of the deepening of the Lawford #1 well.

The Lawford structure is very large and has the potential to host significant amounts of hydrocarbons in place. New Standard estimates that Lawford could host in excess of 500Bcf of gas in place as a conventional target. In addition, the assessment of the Laurel shales and tight sands contained within the Lawford structure (but that extend regionally beyond the structural closure at Lawford) will provide important information and upside for an unconventional play across EP417 and throughout the region. As a result the deepening of Lawford #1 will provide an exciting exposure for New Standard shareholders on multiple fronts.

New Standard Managing Director Sam Willis said the unconventional shale gas and tight gas prospectivity of the emerging Laurel play across EP417 together with the ability to revisit the drilling of Lawford #1 within the next few months provided an attractive opportunity for partners who had approached New Standard seeking short term, large scale opportunities.

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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As a result of this deal New Standard has achieved a substantial financial carry on the drilling of the very large and prospective Lawford #1 structure while keeping a 50% operated interest in the permit.

“The deal has enabled New Standard to significantly derisk the drilling, coring and fracture stimulation of the Laurel shales and tight gas sands at Lawford #1 plus retain significant exposure to exploration success,” Mr Willis said.

“This farm-in secures funding for the deepening of the Lawford #1 well. The majority of necessary access and site infrastructure is already in place and the necessary approvals are well advanced to commence drilling in the third quarter of this year. We are also currently in discussions (alongside other operators in the Canning Basin) to secure a suitable drilling rig and we hope to conclude these negotiations in the near future.”

Buru Energy Ltd ( Buru; ASX code: BRU) ) owns the remaining 35% interest in EP417 and provides a valuable ongoing partner in the drilling and testing of the Laurel play across EP417.

Exploration in the Canning Basin is set to increase significantly over the next 12 months as evidenced by Buru’s ASX release dated 3 March 2011 and the Lawford #1 deepening will add to this activity. The recent successful fracture stimulation of the Yulleroo-2 well by Buru helps to technically derisk the Laurel play somewhat and although the two wells are a significant distance apart, provides encouragement for the deepening of the Lawford #1 well. Importantly the initial results of the testing program at Yulleroo-2 released by Buru indicate a component of condensate and LPG has flowed from the well. This supports New Standard’s expectations that the Laurel play (which extends into EP417 and includes Lawford #1) could involve a liquids rich component which would add significantly to the potential economics of the emerging unconventional Laurel play.

The following table outlines the paying interests in the Lawford #1 deepening program and the permit interests in EP417 following the completion of the program:

Equity Participant	Paying Equity in Lawford #1	Permit Equity Post Lawford #1
New Standard	37.5%	50.0%
Buru Energy	35.0%	35.0%
Green Rock	27.5%	15.0%

In addition to the EP417 farm-in, New Standard and Green Rock have executed an agreement to jointly pursue additional new exploration opportunities within an Area of Mutual Interest ( AMI ). The parties will focus on areas that are prospective for unconventional hydrocarbons within the agreed AMI. Under the terms of the agreement, New Standard will own 60% equity and operatorship in areas arising from the AMI while Green Rock will own 40%. If applicable, further information on any additional areas arising from this AMI will be provided in due course.

-ENDS-

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

For further information, please contact:

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Sam Willis Managing Director Ph: + 61 8 9481 7477

email: swillis@newstandard.com.au

Cameron Morse

Ph: + 61 8 9386 1233 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.

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 $2.1m (including pre-paid exploration costs in the US) and 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 Western Australia’s Canning Basin

• 100% operated interest in application areas 1/09-0, 2/09-0 and 5/09-0 in the Canning Basin

65% operated interest in EP417 in the Canning Basin (diluting to 50%)

• 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 10% equity interest (18m 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

APPENDIX ONE – ADDITIONAL INFORMATION

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EP 417 Farm-in Agreement

Green Rock will earn a 15% equity interest in all hydrocarbon rights across EP417 in return for the following:

1. Payment of $750,000 in back costs to New Standard on the following terms: o $300,000 upon successful completion of Tranche 1 of Green Rock’s capital raising; o $250,000 upon securing a drilling rig for the drilling of Lawford #1 well; and

   • $200,000 upon commencement of drilling the Lawford #1 well

2. Committing to funding 27.5% of the costs of the following:

   • Completing the drilling and coring of Lawford #1 to a revised total depth of approximately 2,600 metres; and

   • Fraccing and testing of the Lawford #1 well.

   • This funding will be subject to a cap of $4 million on total costs following which any additional expenditure will be payable 15% by Green Rock.

In addition to the above, Green Rock commits to drilling a second well on EP417 (location and timing to be agreed but targeted for 2012) to earn an additional 5% equity interest (ie increase from 15% to 20%) in EP417 through committing to funding 22.5% of the following costs:

• Drilling and coring a second well (at a location and time to be agreed); and

• Fraccing and testing of the second well drilled.

• This funding will be subject to a cap of $10 million on total costs following which any additional expenditure will be payable 20% by Green Rock

EP417 and Lawford #1 Background

EP417 is located in the Gregory sub-basin of the Fitzroy trough within the broader Canning Basin of North Western Australia some 200km south-east of Fitzroy Crossing. The permit covers an area of 785,000 acres and New Standard retains a 50% operated interest in the permit following the deepening of the Lawford #1 well pursuant to the terms of this farm-in.

The Lawford #1 well was partially drilled in 2008 and is currently temporarily suspended at a depth of 1,325 metres. The joint venture intends to revisit the well in Q3 of 2011 to deepen the well to approximately 2,600 metres and core sections of the tight gas sands and shales of the laurel section – a rich regional source rock in the Fitzroy Trough. The intention is to undertake detailed analysis of the cored intervals to gain an understanding of the prospectivity of the various zones. Subsequent fracture stimulation of the most attractive intervals will be considered if appropriate and will be timed to coincide with the availability of fraccing crews that may also be employed on nearby wells.

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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Lawford is a very large anticlinal structure with 4 way dip closure covering an aerial extent of approximately 9,000 acres showing approximately 250 metres vertical relief. New Standard considers the potential gas in place to be in excess of 500 Bcf for the conventional structure with additional upside for unconventional resources in the region.

Figure 1: Lawford structure and seismic cross section through Lawford showing the Lawford #1 location

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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.

The deepening of Lawford #1 well will target the lower Anderson formation and Laurel shales and tight gas sands. This is the same formation targeted by Buru Energy’s Yulleroo-2 well which based on information released by Buru was successfully fracture stimulated and flow tested in late 2010 resulting in gas, condensate and LPGs flowing to surface.

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.

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