CENTRAL PETROLEUM LIMITED — Capital/Financing Update 2012

Jun 11, 2012

==> picture [585 x 94] intentionally omitted <==

ASX ANNOUNCEMENT & MEDIA RELEASE

ASX CODE: CTP

12 June 2012

OPERATIONS UPDATE

Central Petroleum Limited (“Central”) advises that the Kintore bypass road, “Kelly Highway”, along with the improvements to the existing Surprise access road and Surprise location were completed 6 June 2012. There were delays in completion of work because of the extended travel time necessary to access a water bore as there was no accessible water near where the road was being built.

Central has also purchased and set up a 20 man camp on the Surprise 1REH location. It was determined, given the continuing operations planned by Central, that it was more economical to purchase a camp instead of paying the high costs of leasing one.

Furthermore, down hole plugs were pulled and down hole gauges set on the Surprise 1REH on 5 May 2012. Our Completion and Production Engineers were dispatched to Alice Springs on 9 June 2012 in preparation for the start of the Extended Production Test (EPT). Our current schedule, upon final approval from the Northern Territory Department of Resources (NTDOR), is to begin flowing the well in late June 2012. We will coordinate operations of the EPT with our seismic data collection to avoid seismic interference.

A Crude Oil Sale and Purchase Agreement is close to being finalised and the term of the initial contract is to be determined by the length of the EPT approved by the NTDOR. The oil from Surprise will be transported to its sales destination via road train.

Ends

Company enquiries, please contact:

Richard Cottee CEO +61 8 9474 1444

Media enquiries, please contact:

Ron Cameron, Director, Mercury Consulting +61 2 8256 3308

General Disclaimer and explanation of terms:

As new information comes to hand from data processing and new drilling and seismic information, preliminary results may be modified. Exploration or testing programmes which may be referred to in this announcement or report have not been necessarily been approved by relevant authorities or Joint Venture partners and accordingly constitute a proposal only unless and until approved. All exploration is subject to contingent factors including but not limited to weather, availability of crews and equipment, funding, access rights and joint venture relationships.

This document may contain forward-looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of Central. These risks, uncertainties and assumptions include (but are not limited to) commodity prices, currency fluctuations, economic and financial market conditions in various countries and regions, environmental risks and legislative, fiscal or regulatory developments, political risks, project delay or advancement, approvals and cost estimates. Actual values, results or events may be materially different to those expressed or implied in this document. Given these uncertainties, readers are cautioned not to place reliance on forward looking statements. Any forward looking statement in this document is valid only at the date of issue of this document. Subject to any continuing obligations under applicable law and the ASX Listing Rules, or any other Listing Rules or Financial Regulators’ rules, Central, 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. Sentences and phrases are forward looking statements when they include any tense from present to future or similar inflection words, such as (but not limited to) "believe," "estimate," "anticipate," "plan," "predict," "may," "hope," "can," "will," "should," "expect," "intend," "is designed to," "with the intent," "potential," the negative of these words or such other variations thereon or comparable terminology, may indicate forward looking statements.