BLUE ENERGY LIMITED. — Capital/Financing Update 2013

Nov 19, 2013

20 November 2013

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ASX ANNOUNCEMENT

Stagmount 1 Exploration Well Weekly Update

Blue Energy Limited (ASX: BUL) is pleased to provide a weekly update report with respect to the drilling of the Company’s Stagmount 1 exploration well in ATP813P, Galilee Basin, Central Queensland.

Stagmount 1 is the first well in a two well program to be drilled in the permit this year.

The primary objective of the well is to increase the resource potential of the permit with the twowell program estimated to potentially add up to 500 Petajoules (PJ) of Contingent Gas Resource to the currently assessed resource base in the wholly-owned Blue Energy permit. To achieve this objective, continuous core will be obtained through the Betts Creek Beds in Stagmount 1 to assess the thickness, gas content and quality of coals within the formation.

Stagmount 1 Operations

Stagmount 1	Spud Date:15:00 hours 3 November2013
**06:00 Depth **	930 metres RT
Current Operations	Coring aheadinthe primary objectiveBetts Creek Beds
Forward Plan	Continuously core to total depth, acquire wireline logs then plug andabandonthewell.

Stagmount 1 exploration well

The Stagmount 1 exploration well is located in Blue Energy’s 100% owned ATP813P in the Galilee Basin of central Queensland. The well is situated approximately 40 kilometres north of the town of Aramac (see Figure 1).

The well is being drilled by Coe Drilling’s Rig 10 to a total depth of approximately 1,185 metres (RT). It is planned to plug and abandon the well following acquisition of the wireline logs.

ATP813P Resource Assessment

Netherland, Sewell and Associates (NSAI) have independently assessed Blue Energy’s 100% owned ATP813P as currently containing 544PJ of Contingent Gas Resource (3C), based on existing well data. The current-two well program undertaken by Blue Energy is designed to significantly add to this resource base.

Contact: John Phillips Chief Executive Officer and Managing Director Blue Energy Limited + 61 7 3270 8800

Brisbane - Level 3, 410 Queen St Brisbane QLD 4000 t (+61 7) 3270 8800 f (+61 7) 3270 8899

e info@blueenergy.com.au ABN 14 054 800 378 w www.blueenergy.com.au

Figure 1: Location of the Stagmount 1 well in ATP813P

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Competent Person Statement

The estimates of reserves and contingent resources have been provided by Mr John Hattner of Netherland, Sewell and Associates Inc. Mr Hattner is a full time employee of NSAI, has over 30 years’ of industry experience and 20 years’ of experience in reserve estimation, is a licensed geologist, and has consented to the use of the information presented herein. The estimates in the report by Mr Hattner have been prepared in accordance with the definitions and guidelines set forth in the 2007 Petroleum and Resource Management System (PRMS) approved by the Society of Petroleum Engineers (SPE).