CAULDRON ENERGY LIMITED — Capital/Financing Update 2012

Oct 2, 2012

3 October 2012

ABN 22 102 912 783

32 Harrogate Street West Leederville WA 6007

Expiration of Listed Options (CXUO) on 31 October 2012

The Company today mailed to optionholders a letter reminding them that the listed options, ASX: CXUO will expire on 31 October 2012.

A copy of the proforma letter is attached to this announcement.

Yours faithfully Cauldron Energy Limited

Tony Sage Executive Chairman

PO Box 1385 West Leederville WA 6901

ASX code: CXU

155,109,481 ordinary shares 12.8 M listed options 4.3M unlisted options

Board of Directors

Tony Sage Executive Chairman

Brett Smith Executive Director

Qiu Derong Non-executive Director

Claire Tolcon Company Secretary

32 Harrogate Street, West Leederville WA 6007 Ph: (+618) 9380 9555 Fax: (+618) 9380 9666 PO Box 1385, West Leederville WA 6901 Web: www.cauldronenergy.com.au

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1 October 2012

[Address] [Address] [Address] [Address]

Dear Optionholder

EXPIRATION OF LISTED OPTIONS 31 OCTOBER 2012

The Company wishes to remind you that you are the holder of [x] listed options (ASX Code: CXUO) in Cauldron Energy Limited ( Cauldron Energy ) which are exercisable on or before 31 October 2012 at $0.45 each, entitling you to [x] fully paid ordinary shares in Cauldron Energy ( Shares ).

The highest and lowest market prices of the Shares on ASX during the 3 months immediately preceding the date of this letter and the respective dates of those sales were $0.23 (highest) on 24 and 28 September 2012 and $0.11 (lowest) on 17, 19 and 25 July 2012. The latest available sale price of the Shares on ASX immediately before the date of this letter was $0.23 on 28 September 2012.

Should you wish to exercise any or all of your options, please forward your completed option exercise form to the undersigned by 31 October 2012.

Should you not exercise all or part of your options, those options not exercised will expire and will be of no further value. In accordance with ASX Listing Rules quotation of the options will end on 24 October 2012.

Yours faithfully

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Claire Tolcon Company Secretary Cauldron Energy Ltd

32 Harrogate Street, West Leederville WA 6007 PO Box 1385 West Leederville WA 6901 PHONE +61 8 9380 9555 FAX +61 8 9380 9666 www.cauldronenergy.com.au