BURU ENERGY LIMITED — Capital/Financing Update 2012

Jul 18, 2012

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Buru Energy Limited ABN 71 130 651 437 Level 2, 97 William Street Perth, Western Australia 6000 PO Box 7794, Perth Cloisters Square WA 6850 Ph: 61-8 9215 1800 Fax: 61-8 9215 1899 www.buruenergy.com

ASX ANNOUNCEMENT (ASX: BRU) 19 July 2012 Weekly Drilling Progress Report - Yulleroo-3

Buru Energy Limited (“ Buru ” or “ Company ”) provides the following weekly update on the drilling operations at the Yulleroo-3 well as at 06:00hrs, 19 July 2012 (AWST).

Yulleroo-3 is the third well in the Buru – Mitsubishi Corporation (“ MC ”) 2012 Joint Exploration Program. The well is located in exploration permit EP 391 some 80 kilometres to the east of Broome. Buru and MC each have a 50% interest in this well and in EP 391, with MC contributing 80% of the cost of the well under the terms of its farm-in agreement with Buru.

Since the last progress report, wireline logs have been acquired and the current operation is preparing to attempt to obtain pressure and fluid samples from the Laurel Formation gas sands.

The wireline logs, together with the mud log gas shows and gas wetness/balance ratios, have confirmed the presence of an extensive gas charged section from approximately 2,130 metres measured depth to the current total depth of 3,578 metres. This section adds some 1,110 metres of gas charged section above the previously interpreted top of the gas sands in Yulleroo-1. There is also good stratigraphic correlation with the gas charged section in Yulleroo-1 which is some 2km away, but two additional sand packages are present which add significantly to the interpreted gas charged reservoir section in the well. The good stratigraphic correlation gives confidence in the continuity of the reservoir section across the greater Yulleroo structure and hence the volumes of gas in the structure.

Gas wetness ratios and inferred pressure data also indicate that there is a strong possibility that the Yulleroo accumulation is part of a broader basin centred gas accumulation in the Yulleroo area.

Given the encouraging results of the well to date it has also been agreed to deepen the well to a revised total depth of 3,800 metres from the original target total depth of 3,600 metres. The deepening operation is subject to maintaining stable hole conditions. Once final total depth is reached and the newly drilled hole has been logged and evaluated, 7” casing will be run and cemented.

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Eric Streitberg, Buru’s Executive Director, commented on the results to date:

• “We are extremely encouraged by the results of the well to date. The extensive gas charged section and the lateral continuity of the sand packages indicates that the Yulleroo accumulation is a very significant gas field. The potential for the Yulleroo structure to be part of a much larger basin centred gas accumulation is also very encouraging for both the Yulleroo area, and for the basin generally, and the consideration of the location of the next well on the structure will take into account this potential.”

In accordance with its policy of releasing weekly drilling progress reports, the Company expects to issue a further drilling progress report on 26 July 2012, subject to any material events occurring in the meantime.

Further information on the Company is available at: www.buruenergy.com

For inquiries please contact:

Eric Streitberg Executive Director Telephone +61 8 9215 1800 Freecall 1800 337 330 Email ericstreitberg@buruenergy.com

LOCATION MAPS

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Yulleroo-3 Regional location map

Yulleroo-3 Detailed location map

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YULLEROO-3

PERMIT

WELL LOCATION

BURU’S INTEREST

DATE OF PROGRESS REPORT

PROPOSED TOTAL DEPTH

CURRENT DEPTH

SPUD DATE

DAYS SINCE SPUD

CURRENT TARGET FORMATION

OPERATIONS SINCE LAST PROGRESS REPORT

HYDROCARBON INDICATIONS

FORWARD OPERATIONS

The Yulleroo-3 well is located in exploration permit EP 391 some 80 kms east of Broome. Maps showing the location of the well are set out on the previous page.

Latitude: 17[0] 50’ 59.39” S Easting: 488510m Longitude: 122[0] 53’ 20.59” E Northing: 8026425m

Buru Energy Limited holds a 50% interest in the well

06:00hrs, 19 July 2012 (AWST)

3,800 (revised from original TD of 3,600 metres)

3,578 metres

25 May 2012

55 days

The Yulleroo-3 well is targeting the Upper and Lower Laurel gas sands encountered in the Yulleroo-1 and 2 wells.

Since the last progress report, wireline logs have been acquired. The current operation is preparing to attempt to obtain pressure and fluid samples from the Laurel Formation gas sands.

The wireline logs, together with the mud log gas shows and gas wetness/balance ratios, have confirmed the presence of an extensive gas charged section from approximately 2,130 metres measured depth to the current total depth of 3,578 metres. This section adds some 1,110 metres of gas charged section above the previously interpreted top of the gas sands in Yulleroo-1. There is also good stratigraphic correlation with the gas charged section in Yulleroo-1 which is some 2km away, but two additional sand packages are present which add significantly to the interpreted gas charged reservoir section in the well. The good stratigraphic correlation gives confidence in the continuity of the reservoir section across the greater Yulleroo structure and hence the volumes of gas in the structure. Gas wetness ratios and inferred pressure data also indicate that there is a strong possibility that the Yulleroo accumulation is part of a broader basin centred gas accumulation in the Yulleroo area.

Given the encouraging results of the well to date it has been agreed to deepen the well to a revised total depth of 3,800 metres from the original target total depth of 3,600 metres. The deepening operation is subject to maintaining stable hole conditions. Once final total depth is reached and the newly drilled hole has been logged and evaluated, 7” casing will be run and cemented.

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