CENTRAL PETROLEUM LIMITED — Capital/Financing Update 2011

Aug 28, 2011

Appendix 3B New issue announcement

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003, 24/10/2005.

Name of entity

CENTRAL PETROLEUM LIMITED

ABN

72 083 254 308

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1+Class of+securities issued or tobe issued2Number of+securities issued or tobe issued (if known) or maximumnumber which may be issued3Principal terms of the+securities(eg, if options, exercise price andexpirydate;ifpartlypaid+securities,theamountoutstanding and due dates forpayment;if+convertiblesecurities, the conversion priceand dates for conversion)	Unlisted Employee Incentive Options
	2,000,000
	Each option has an exercise price of $0.115(11.5 cents) and an expiry date of 19 August2016

• See chapter 19 for defined terms.

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Appendix 3B New issue announcement

4 Do the[+] securities rank equally in all respects from the date of No. The options are unquoted and do not rank allotment with an existing[+] class equally with an existing class of quoted of quoted[+] securities? securities. If the additional securities do not rank equally, please state: • the date from which they do A share issued on exercise of an option will rank • the extent to which they equally in all respects with shares already on issue of the date of exercise of the option, except participate for the next for entitlements which have a record date before dividend, (in the case of a the issue of the share. trust, distribution) or interest payment

• the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

5 Issue price or consideration

Nil

6 Purpose of the issue Issued pursuant to employment contracts (If issued as consideration for the acquisition of assets, clearly identify those assets) 7 Dates of entering +securities 19 August 2011. into uncertificated holdings or despatch of certificates Number +Class 8 Number and +class of all 982,298,842 Ordinary fully paid shares. +securities quoted on ASX ( including the securities in 274,310,525 Options exercisable at clause 2 if applicable) $0.16 each on or before 31 March 2014

• See chapter 19 for defined terms.

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Appendix 3B New issue announcement

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----- Start of picture text ----- Number +Class9 Number and +class of all 11,000,000 Options (various) 3/1/12+securities not quoted on ASX 200,000 Options $0.33 31/07/11( including the securities in 500,000 Options $0.30 31/08/11clause 2 if applicable) 666,666 Options $0.25 17/11/111,000,000 Options $0.25 19/1/12250,000 Options $0.25 16/2/12200,000 Options $0.25 23/2/127,500,000 Options(various) 31/3/148,366,666 Options $0.20 31/3/146,340,000 Options $0.122 31/05/15800,000 Options $0.11 31/10/15300,000 Options $0.12 12/o5/20167,646,665 Options $0.11 ….20/07/20162,000,000 Options $0.115 19/08/2016----- End of picture text -----

• 10 Dividend policy (in the case of a Not Applicable trust, distribution policy) on the increased capital (interests)

Part 2 - Bonus issue or pro rata issue

Questions 11 - 33 Not Applicable

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

34 Type of securities ( tick one )

• (a) Securities described in Part 1

• (b) All other securities

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Questions 35 to 37 - Not Applicable

Entities that have ticked box 34(b)

Questions 38 to 42 - Not Applicable

• See chapter 19 for defined terms.

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Appendix 3B New issue announcement

Quotation agreement

• 1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the[+] securities on any conditions it decides.

• 2 We warrant the following to ASX.

  • The issue of the[+] securities to be quoted complies with the law and is not for an illegal purpose.

  • There is no reason why those[+] securities should not be granted +quotation.

  • An offer of the[+] securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any[+] securities to be quoted and that no‐one has any right to return any[+] securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the[+] securities be quoted.

• If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the[+] securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• 4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before +quotation of the +securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

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(Joint Company Secretary) 26 August 2011

Print name: Bruce Elsholz

• See chapter 19 for defined terms.

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