CENTRAL PETROLEUM LIMITED — Capital/Financing Update 2011

Jun 2, 2011

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ASX ANNOUNCEMENT

ASX CODE: CTP

3 June 2011

TO: The Manager, Company Announcements ASX Limited

CONTACT: John Heugh +61 8 9474 1444

Cancellation of Bond Subscription Agreement

Central Petroleum Limited (ASX: CTP ) (“ Company ”) advises that the Bond Subscription Agreement between the Company and Asia Convertible Bond Opportunities, LLC (“ ACBO ”) has been terminated.

An ancillary share lending agreement between ACBO and MPS Staff Super Pty Limited will automatically terminate following the termination of the Bond Subscription Agreement.

As previously announced, the Company entered into the Bond Subscription Agreement in November 2007 and has drawn down on these bonds to raise funds for its exploration and development programmes.

The Company has since reviewed its current and forecast cash flow position, its need for significant funding and its ability to raise funds. The Company now considers that the Bond Subscription Agreement is no longer in the Company's best interests and has elected to exercise its right to terminate it.

John Heugh

Managing Director Central Petroleum Limited

For further information contact: John Heugh Tel: +61 8 9474 1444 or Ray Beatty Corporate Writers Tel: +613 9224 5272, M: +61 409 174 565

General Disclaimer/Legal Notice:

The ASX Limited and none of its employees take any responsibility for the content of this document. The Company does not give investment advice and any interested investors should seek independent advice. Any forward looking statement in this document is valid only as at the date of issue of this document. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of the Company. Subject to any continuing obligations under applicable law and the ASX Listing Rules, or any other Listing Rules or Financial Regulators’ rules, the Company, its agents, directors, officers, employees, advisors and consultants do not undertake any obligation to update or revise any information or any of the forward looking statements in this document if events, conditions or circumstances change or that unexpected occurrences happen to affect such a statement.

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