BROOKSIDE ENERGY LIMITED — Capital/Financing Update 2007

Dec 10, 2007

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11 December 2007

Manager Announcements Company Announcements Office Australian Stock Exchange Limited th 4 Floor, 20 Bridge Street Sydney NSW 2000

Red Fork Energy Limited ACN 108 787 720 Level 2, 79 Hay Street Subiaco Western Australia 6008 PO Box 1424 West Perth WA 6872

Telephone +61 8 9200 4470 Facsimile +61 8 9200 4471 www.redforkenergy.com.au

Dear Sir,

REDFORK #3-29 INTERSECTS GOOD SHOWS OF GAS

The Directors of Red Fork Energy Limited (“Red Fork or the Company”) are pleased to announce that the, Redfork #3-29 Well, reached target depth of approximately 1,341 feet at 2.30pm Central Time on 9 December, 2007.

A full suite of logs have been completed and production casing has been run and cemented. This well confirmed the presence of all of the known coals (within the Company’s 100% owned Osage Project) with good shows of gas in at least three zones, the Dawson Coal, the Oswego Limestone and the Redfork Sand. These zones are all expected to be productive as well as the other known coals.

The Company is now proceeding with completion procedures on this well (as designed) and we expect to have the well completed and tied-in to our production infrastructure during the March quarter of 2008.

Equipment is now being moved on location ahead of the spudding of the Redfork #529 Well later this week. These two wells (the Redfork #3-29 and the Redfork #5-29 ) are the first two of four wells to be drilled in the current program.

Background

Red Fork currently has approximately 37,000 acres (leased or committed to lease) in Oklahoma (targeting 50,000 acres from its on-going leasing campaign) with long lease terms and high net revenue interests. The company has established a very strong technical team based in its office in Tulsa (with access to experienced drilling contractors and service companies with demonstrated successful track-records) and has built and acquired significant pipeline, compression and gathering infrastructure.

Yours faithfully,

David Prentice Executive Director

For further information please contact: David Prentice, RedFork Energy Limited, Tel: (08) 9200 4470 RedFork Energy website: www.redforkenergy.com.au