BROOKSIDE ENERGY LIMITED — Capital/Financing Update 2012

Jan 22, 2012

==> picture [246 x 34] intentionally omitted <==

==> picture [473 x 68] intentionally omitted <==

----- Start of picture text ----- ASX AnnouncementJanuary 23, 2012----- End of picture text -----

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)

ASX Code

RFE (Fully Paid Ordinary Shares)

Mississippian Holdings Reach 73,000 Net Acres

Oklahoma based (Australian Securities Exchange listed) oil and gas exploration and production company Red Fork Energy Limited (“Red Fork” or the “Company”) is very pleased to announce that its continuing leasing initiatives have added a further 13,000 acres (an additional 22%) to its holdings in the exciting horizontal Mississippian oil and liquids rich gas play in Oklahoma.

Red Fork now holds approximately 73,000 net (select highgrade) acres in the heart of this play.

The Company now has an interest in 325 (640 acre) sections across five of the key Counties (Grant, Kay, Noble, Payne and Pawnee) in the eastern limb of the play. Red Fork’s number of controlled sections in the play has also increased (now 128 sections) as the ongoing successful leasing activities focus on infill leasing in the play.

These additional 13,000 acres (all located adjacent to or contiguous with our existing Noble County holdings) where secured through a Bureau of Land Management (“BLM”) Federal Land lease sale. Red Fork secured the leases on very favorable terms, with a 10 year term and 87.5% Net Revenue Interest.

The Company had been working on this opportunity for approximately 12 months, with the early completion of key land and title work instrumental in providing Red Fork with a significant advantage over other operators looking to secure this acreage.

Commenting on this release, Red Fork Managing Director, David Prentice said, “The successful conclusion of this transaction is another coup for our Tulsa based land department. We are very pleased to have been able to secure this strategically important acreage that is in the heart of the play adjacent to and contiguous with our Noble County development area. We are also looking forward to updating the market with further acreage increases as our leasing activities continue this year in this very exciting play.”

Yours faithfully

David Prentice Managing Director

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