CUE ENERGY RESOURCES LIMITED — Capital/Financing Update 2012

Dec 11, 2012

==> picture [264 x 82] intentionally omitted <==

A.B.N. 45 066 383 971

==> picture [575 x 28] intentionally omitted <==

----- Start of picture text -----

12 December 2012 PAGES (including this page):3
----- End of picture text -----

CUE ENERGY OVERVIEW

Company Announcements Office 10th Floor 20 Bond Street Sydney NSW 2000

Cue is an Australian based oil & gas company with projects in Australia, New Zealand, Indonesia and PNG.

THE COMPANY HAS:

• Long life production

• A strong balance sheet

• An active exploration program

CUE ENERGY DIRECTORS

Cue Increases Exploration Interests in the Taranaki Basin, New Zealand

• Geoffrey King (Chairman)

• Timothy Dibb

• Steve Koroknay

• Paul Moore

• Andrew Young

• Richard Tweedie

Attached please find Cue Energy Resources Limited release with respect to the above mentioned.

Yours faithfully

==> picture [131 x 73] intentionally omitted <==

CUE ENERGY MANAGEMENT

• Andrew Knox (CFO)

• David Whittam (Exp Man)

OFFICE

Level 21 114 William Street Melbourne Vic 3000

CONTACT DETAILS

Tel: +61 3 9670 8668 Fax: +61 3 9670 8661

EMAIL

Andrew M Knox Public Officer

mail@cuenrg.com.au

WEBSITE

www.cuenrg.com.au

LISTINGS

ASX: CUE NZX: CUE POMSOX: CUE ADR/OTCQX: CUEYY

==> picture [596 x 61] intentionally omitted <==

A.B.N. 45 066 383 971

RELEASE

(ASX: CUE; NZX: CUE; POMSOX: CUE; ADR/OTC: CUEYY)

Cue Increases Exploration Interests in the Taranaki Basin, New Zealand

Cue is pleased to advise that it has been awarded a new exploration permit in the Taranaki Basin in New Zealand’s offshore waters.

PEP 54865

Cue has been successful in a bid for a 20% interest together with Todd Exploration (80%) interest in permit PEP 54865 which lies immediately adjacent to PEP 51313 and the Maari and Manaia oil fields in the offshore Taranaki Basin of New Zealand (see map). The permit covers an area of 2,475 sq km and is for a 5 year permit term.

The award was announced by the Hon. Phil Heatley, Minister of Energy & Resources on the 11[th] December 2012. PEP 54865 was one of several areas offered by the government of New Zealand for competitive bidding.

==> picture [289 x 262] intentionally omitted <==

Figure 1 - Location of PEP 54865 in New Zealand

The permit work programme in the first 30 months consists of seismic reprocessing, geological studies and 285 sq km 3D seismic acquisition and processing.

The joint venture has the option to drill an exploration well in either the third or fourth year of the permit.

Participants in PEP 54865 are:

Cue Taranaki Pty Ltd 20% Todd Exploration Limited 80% Operator

Cue’s Comment

The award of PEP 54865 builds on Cue’s existing interests in the Taranaki Basin which include the successful Maari and Manaia oil field development and PEP 51313. The new permit contains several prospects and leads that have excellent potential for future oil and gas discoveries.

Any queries regarding the announcement should be directed to the Company on (03) 96708668 or email mail@cuenrg.com.au.

Andrew Knox Chief financial Officer

12[th] December 2012