CUE ENERGY RESOURCES LIMITED — Capital/Financing Update 2012

Feb 16, 2012

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Cue Energy Resources Limited

A.B.N. 45 066 383 971

Level 21 114 William Street Melbourne Victoria 3000 Australia

Telephone: (03) 9670 8668 Facsimile: (03) 9670 8661 Email: mail@cuenrg.com.au Website: www.cuenrg.com.au

TO : Company Announcements Office 10th Floor 20 Bond Street Sydney NSW 2000 DATE : 17 February 2012 FROM : Andrew Knox

PAGES (including this page): 3

RE : Naga Utara-1 Well, Mahakam Hilir PSC, Indonesia

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

Yours faithfully

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Andrew M Knox Public Officer

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Cue Energy Resources Limited

A.B.N. 45 066 383 971

RELEASE

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

- Naga Utara 1 Well, Mahakam Hilir PSC, Indonesia

Cue Energy Resources Ltd is pleased to provide the following update on the drilling status of Naga Utara-1. The well is located within the Mahakam Hilir PSC in the Kutei Basin, Indonesia. The well operator is SPC Mahakam Hilir PTE Ltd (SPC).

It is proposed to drill to a total depth of 5500 ft Measured Depth (MD).

As of 16[th] February 2012 the well is at 4887 ft MD. While plugging the high-pressure gas zone between 4780 ft MD and the current total depth, the well flowed gas, resulting in 5 to 8 metre flares over seven days. A cement plug was set between TD and 4230 ft MD.

A shallower cement plug is being set to 3300 ft MD before the hole is side-tracked to repenetrate the high-pressure gas zone between 4780 ft MD and 4887 ft MD and continue to TD. All the equipment required for the sidetrack has been procured and is on site. The well will no longer need to be suspended, as the sidetrack will be drilled immediately.

The participants and their respective interests in the PSC are:

SPC Mahakam Hilir Pte Ltd ( Operator ) 60% Cue Mahakam Hilir Pty Ltd 40%

Cue will continue to release reports of well progress on a weekly basis.

Any queries regarding the announcement should be directed to the Company on (03) 9670 8668 or email mail@cuenrg.com.au

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Mark Paton Chief Executive Officer

16[th] February 2012

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----- Start of picture text ----- Figure 1 - Location of Mahakam Hilir PSC, Indonesia----- End of picture text -----