CULLEN RESOURCES LIMITED — Capital/Financing Update 2012

Feb 19, 2012

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ABN 46 006 045 790

www.cullenresources.com.au

ASX Symbol: CUL

ASX ANNOUNCEMENT 20 February 2012

CANNING BASIN COAL PROJECT JV – PLANS FOR FOLLOW - UP DRILLING

In July 2010, Cullen Resources Limited (ASX Code: CUL) (Cullen) and Advaita Power Resources Pte Ltd (Advaita), formed a Joint Venture to explore Cullen’s extensive tenement package in the Canning Basin for coal (ASX release of 15-7-2010).

During its first field season of exploration in 2011, Advaita completed a reconnaissance drilling programme of 23 drill holes for 4,246 metres, comprising six RC drill holes for 778 metres and 17 rotary mud drill holes for 3,468 metres. This drilling programme discovered coal in four of 23 holes drilled, with coal seam intersections ranging from 0.19 to 0.55m thick at relatively shallow depths ranging from 40190 metres. These thermal coal seam intersections are within a block of tenements, centred about 150km east of Derby (see Figure).

Advaita has now developed a forward work programme and associated budget for the 2012 field season which will focus on-going exploration drilling around these indications of coal from the 2011 preliminary drilling.

To accommodate this plan, Cullen and Advaita have agreed to exclude E04/1933 , E04/1836 and application E04/1838, that comprise a lower priority tenement block near and south of the Fitzroy River valley, from the Joint Venture, and to vary the terms. The key terms are now as follows:

• 1. The Joint Venture will be for coal rights only, with Cullen retaining all other mineral rights; 
     

• 1. Advaita commits to spend a minimum of $1,000,000 before October 31st 2013 to earn a 75% interest (to include ~$550,000 spent to date); 
     

• 1. Thereafter, Advaita to sole fund a further $2.0M on exploration and maintaining tenements in good standing; and,
• 1. Thereafter, Cullen can contribute at 25%, or take a 20% Free Carried Interest to Decision To Mine based on a Bankable Feasibility Study.

Unit 4, 7 Hardy Street South Perth | Western Australia 6151 Telephone: +61 8 9474 5511 | Facsimile: +61 8 9474 5588 E-mail: cullen@cullenresources.com.au Website: www.cullenresources.com.au

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Dr. Chris Ringrose, Managing Director, +61 8 9474 5511

Advaita - a private, Singapore-based, energy-focused, investment company with various equity and exploration interests for coal in Indonesia, and Australia.

ATTRIBUTION - Competent Person Statement

The information in this report that relates to Exploration Results is based on information compiled by Dr. Chris Ringrose, Managing Director, Cullen Resources Limited who is a Member of the Australian Institute of Mining and Metallurgy. Dr. Ringrose is a full time employee of Cullen Resources Limited. He has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration, and to the activity which has been undertaken, to qualify as a Competent Person as defined by the 2004 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr. Ringrose consents to the report being issued in the form and context in which it appears

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