CUE ENERGY RESOURCES LIMITED — Capital/Financing Update 2012

Jan 10, 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 : 11 January 2012 PAGES (including this page): 2 FROM : Andrew Knox RE : Naga Utara – 1 Well, Mahakam Hilir PSC, Indonesia Update

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 advise that the Naga Utara-1 well was spudded on 5[th] January, 2012. 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 and is expected to take approximately 30 days to complete including production testing as required.

As of 10[th] January 2012 the well is at 223 ft measured depth. The 20 inch casing is currently being set. Forthcoming operations will be to complete setting the casing, cement in place and drill the 17 ½ inch hole section.

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) 96708668 or email mail@cuenrg.com.au

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Mark Paton Chief Executive Officer

11[th] January 2012