CYCLIQ GROUP LTD — Management Reports 2011

Nov 28, 2011

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28 November 2011

Companies Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000

Managing Director’s Update to Shareholders

Dear Investor

I would like to take this opportunity to introduce myself as the new Managing Director for Modena Resources and provide you with an update on the work the Board, USA staff, and I have been undertaking over the past few weeks.

We are implementing a three pronged strategy aimed at firstly recovering the Company’s financial position, secondly restarting production and, finally, assessing opportunities for longer term growth.

Restructuring and Recapitalisation Programme

As most investors are aware, the Company has been in a difficult financial position for some time. Over the past four weeks we have been restructuring the Company in an attempt to secure its long-term future. The most significant piece of work in this area has been the audit of the US accounts. As I write this letter, work is continuing in Houston and we are confident that it will be finalised in the coming weeks. Once the final audit report has been received it will be presented to shareholders and the Australian Stock Exchange (ASX). We will then seek Modena’s reinstatement on the ASX.

Our work in restructuring the balance sheet of the Company is also well advanced. We are finalising a private placement by way of a convertible note to sophisticated investors on similar terms to the last convertible note issued in September 2011. In addition we have commenced negotiations with debt holders aimed at restructuring the Company’s current outstanding debts. The raising of new funds and the restructuring of the Modena’s existing debts are significant milestones in securing Modena’s financial security going forward and will sustain the implementation of our strategy.

We have also instituted a general and administrative cost management programme across the entire organisation. From an operational perspective we have shut-in the uneconomic production wells on Padre Island and taken the short-term step of reducing the size of our USA based operations team to match our immediate organisational needs. These steps have yielded a 60% reduction in the day-today running costs for the USA operations. In addition we have liquidated a number of non-essential

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Modena Resources Limited 28 November 2011

ASX Announcement Managing Director’s Update to Shareholders

items from our Australian inventory, which combined with the USA cost savings further improves the outlook of the Company’s financial health.

We are also taking a pragmatic approach to the outstanding legal cases in which the Company is involved. It is our intention to resolve each of these in the most prudent manner possible.

Padre Island Legacy Assets

Our legacy assets on Padre Island are now undergoing a detailed technical and economic review. This work is to determine what maintenance, work over and drilling will be required to realise a return from these assets.

A number of these leases have lapsed or been terminated in the last 6 months. We are now in the process of renegotiating leases and have commenced preparing reacquisition bids for submission in the New Year. As part of this process we are also reviewing potential JV partners for Padre Island as a means of reducing the cost and risk exposure to the Company. We are quietly confident that this approach will yield revenue from these legacy assets.

New Opportunities for Growth

Texas is one of the world’s most prolific oil and gas provinces, with well over 150 years of almost continuous oil and gas production. The state has extensive infrastructure and support facilities with abundant opportunities that we believe may be a good fit with the Company’s size and skill set.

It is our view that the Padre Island legacy assets will assist us with short to medium-term production and cash flow, but new assets will be required for longer-term sustained growth of the Company. We are already investigating a number of opportunities to enhance Modena’s portfolio that would provide low to medium risk exploration, development, and production. When these investigations reach a material stage we will provide an update to investors and the share market.

The new Board of Directors brings vast experience and a proven track record that has already enhanced Modena’s position. Significant cost-savings have been identified ensuring funds are available for asset value creation. Our leaner corporate structure, materially lower overheads, coupled with a strong board and capable management team promises to deliver an exciting year of turnaround and growth for the Company.

Finally, I would like to say that it is an honour and a privilege to be working for Modena and I am very pleased with the progress we have made to date in restructuring our Company. In the short time the Board and I have been involved we have received a substantial number of calls from shareholders expressing their support. I thank you for that support.

Suite 304, 22 St Kilda Road • St Kilda • Victoria • 3182

T: +61 3 9692 7222 F: +61 3 9529 8057

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Modena Resources Limited 28 November 2011

ASX Announcement

Managing Director’s Update to Shareholders

It is my hope that you will view our strategy and the work we have completed so far as a positive step forward for Modena. I look forward to providing more details on our progress in the coming weeks and months.

Yours sincerely,

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Andrew Mattin

Managing Director Phone: +61 3 9692 7222 Email: andrew.mattin@modenaresources.com.au

About Modena Resources: Modena Resources is an independent oil and gas production and exploration company, listed on the Australian Stock Exchange (Code – MDA). Its primary of interest of operations is Padre Island region of Texas, USA.

www.modenaresources.com

Suite 304, 22 St Kilda Road • St Kilda • Victoria • 3182

T: +61 3 9692 7222 F: +61 3 9529 8057