BROOKSIDE ENERGY LIMITED — Capital/Financing Update 2007

Dec 6, 2007

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7 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,

HIGHLIGHTS

• Redfork #3-29 well spudded

• Four wells to be drilled over coming 6 weeks

• Drilling schedule confirmed for the first quarter of 2008

The Directors of Red Fork Energy Limited (“Red Fork” or the “Company”) are pleased to announce that equipment was moved on location today ahead of spudding of the Redfork #3-29 well tomorrow. This well will be drilled to a total depth of approximately 1,500 feet and will test all potential pay zones, including all of the known coals that occur within the Company’s 100% owned Osage project.

The well is expected to reach total depth early next week and the Company will then complete a full suite of logs, including Dual Induction, Compensated Density-Neutron and Micro Log. Casing will be set through all potentially productive intervals and cemented so that each zone can be isolated for testing.

Red Fork has contracted to drill a further three wells over the balance of this month and into early January. Drilling of these additional wells ( Redfork #5-29, Redfork #120 and the Redfork #1-18 ) will commence immediately following completion of Redfork #3-29 . The Redfork #5-29 will test all of the coals within the Osage project, and Redfork #1-18 and #1-20 will test deeper conventional oil and gas zones as well as the shallower coals.

In addition, Red Fork has reached agreement with one of its preferred drilling contractors on its drilling schedule for the first quarter of 2008. The Company is looking to develop its lease holdings with staged programs of between 6 and 10 wells to be drilled and completed at a time over the course of 2008. The first of these programs is expected to be completed during the March quarter.

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.

Following the previously announced A$10 million placement, Red Fork is now fully funded to pursue the ongoing development of its rapidly growing coal bed methane, shale gas, and conventional oil and gas holdings in Oklahoma, in the United States.

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