CYCLIQ GROUP LTD — Capital/Financing Update 2008

Sep 8, 2008

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9 September 2008

Companies Announcements Office ASX Limited 20 Bridge Street SYDNEY NSW 2000

By E-Lodgement

PLACEMENT

The Company is pleased to announce that it has reached agreement for the placement of 3,750,000 ordinary fully paid shares at an issue price of $0.27 per share, together with one free attaching listed option for every two shares subscribed for and allotted, to raise $1,012,500 before costs.

The Company has also reached agreement for the issue of unsecured convertible notes (“Notes”) with a face value of $1,800,000.

The principle terms of the Notes will be as follows:

• (i) Redemption Date: 30 September 2010;

• (ii) Convertible into ordinary fully paid shares at an issue price of 40 cents per share;

• (iii) Subject to the Corporations Act, ASX Listing Rules and shareholder approval , if necessary, convertible, in whole or part, by the Noteholder at any time from the date of issue and prior to the Redemption Date; and by the Company where the closing price of the Company’s shares is 40 cents or greater for 5 consecutive trading days;

• (iv) Shares issued upon conversion of any Note will carry standard rights applicable to quoted ordinary shares in the Company and will, from the date of issue, rank equally with fully paid ordinary shares currently on issue;

• (v) Interest rate – 10% per annum;

• (vi) The company does not intend to list the Notes for quotation on ASX and it is not obligated to do so;

• (vii) The Notes shall not provide for any voting rights at shareholder meetings of the Company;

Suite B 150 Hay Street Subiaco Western Australia 6008 Phone 08 9388 8439 Fax 08 9388 8450

• (viii) Unless converted or redeemed during the term, the Notes will be redeemed at the Redemption Date at the face value of the Notes;

• (ix) The Notes will be unsecured and the Noteholder will rank equally with all other unsecured creditors of the Company.

The issue of shares and options, including shares on conversion of the Notes, will be subject to shareholder approval and will be to sophisticated or professional investors and will not require disclosure under the Corporations Act.

The money raised from the placement will be used to fund the company’s existing oil and gas exploration activities and for additional working capital.

Yours faithfully

Craig Willis Director