BROOKSIDE ENERGY LIMITED — Capital/Financing Update 2011

Jan 26, 2011

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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

Contact

David Prentice Managing Director david.prentice@redforkenergy.com.au

Website

www.redforkenergy.com.au

Directors

Michael Fry (Chairman) David Prentice (Managing Director) Perry Gilstrap (Director Operations) Bruce Miller (Director Resources) Steve Miller (Non-Executive Director)

Red Fork Expands Mississippian Oil Acreage

•  Total holdings in the exciting new horizontal Mississippian project (“the Big River project”) increased by 50% to approximately 18,000 acres

•  Red Fork also now controls eleven sections within the Noble County portion of its Big River Project area

•  Noble County area will be the focus for initial development of the Big River project with the ability to drill more than 20 horizontal wells in these controlled sections alone

•  Company continuing to aggressively pursue additional high grade acreage within the Big River project area with a target of between 35,000 and 50,000 acres

ASX Code

RFE (Fully Paid Ordinary Shares)

Oklahoma based (Australian Securities Exchange listed) oil and gas exploration and production company Red Fork Energy Limited (“Red Fork” or the “Company”) is pleased to announce that it has significantly expanded its acreage position in the exciting horizontal Mississippian oil and liquids rich gas play in North West Oklahoma.

The Company now holds approximately 18,000 acres within its defined Big River project area. The Company has taken a 100% Working Interest in leases with a three year term and Net Revenue Interests of 81.25%.

Importantly, Red Fork now controls eleven (640 acre) sections in the Noble County portion of the Big River project. This area will be the focus for our initial horizontal drilling and development and control of these sections gives the Company the ability to propose and operate more than 20 wells in this area alone.

Continues…

The Company is also continuing to aggressively lease in the play, high grading sections within our preferred areas using data from more than one thousand previously drilled vertical wells as reservoir control. The Company is targeting a total acreage position of between 35,000 and 50,000 acres (50 to 75 sections) in the play.

Yours faithfully, David Prentice Managing Director

www.redforkenergy.com.au

Forward Looking Statements

This announcement contains “forward-looking statements”. Such forward-looking statements include, without limitation: estimates of future earnings, the sensitivity of earnings to oil & gas prices and foreign exchange rate movements; estimates of future oil & gas production and sales; estimates of future cash flows, the sensitivity of cash flows to oil & gas prices and foreign exchange rate movements; statements regarding future debt repayments; estimates of future capital expenditures; estimates of reserves and statements regarding future exploration results and the replacement of reserves; and where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to oil and gas price volatility, currency fluctuations, increased production costs and variances in reserves or recovery rates from those assumed in the company’s plans, as well as political and operational risks in the countries and states in which we operate or sell product to, and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s Annual Reports, as well as the Company’s other filings. The Company does not undertake any obligation to release publicly any revisions to any “forward looking statement” to reflect events or circumstances after the date of this release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

www.redforkenergy.com.au