DIGITALX LIMITED — Capital/Financing Update 2011

Oct 23, 2011

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O ctober 24, 2 011

A SX Release ASX C o des: TNP, VIL, KOG, GG E

Lyons Point Wel l – Drilling Upda te#7

• Lyons Point is a high impact prospect targeting 3 MMBC & 60 BCFG (up to 4 MMBC & 80 BCFG)

• Adjacent to Leleux Field which produced 5 MMBC and 300 BCFG from target reservoir  Currently drilling ahead at 13,973ft, approximately 24 days to reach first reservoir target at 15,500ft

• Pruitt et al #1 Well, Lyons Prospect, Acadia Parish, Louisiana, USA‐ Non Operators

T he Pruitt et al #1, the i n itial test we l l for the Ly o ns Point Pr o spect w as spudded on 13 Septe m ber 2011 a n d is presently drilling ah e ad at 1 3,973ft. Th e well is being operated b y Clayton W illiams Ener g y Inc. u nder a turnkey fixed cost drilling cont r act with Pre c ision Drilling.

T he expecte d drilling ti m e to reach the first t a rget objective at 1 5,500ft is 24 days.

T he Lyons Point Prospect w ill be drilled to a total de p th of 16,30 0 feet. T he prospec t has a clos u re of circa 400 acres w ith a most likely resource pot e ntial of 3 M MBC (Million Barrels C o ndensate) a n d 60 B CFG (Billion C ubic Feet G a s) with upsi d e potential o f 4 MMBC and 80 B CFG.

T he Lyons P o int Prospec t is a seism i cally define d , upthrown fault b ounded structural closur e . The obje c tive section is provided b y the p rolific Oligo c ene Margin u lina Texana (MT) 1, 2, a n d 3 Sands, w hich a re projecte d to be tog e ther 700 f e et thick. T h e MT san d s are p roductive in several fiel d s in the im m ediate sur r ounding are a and i n clude the n e arby Leleux Field, which h as cumulati v e production of 5 M MBC and 3 0 0 BCFG fro m the MT interval.

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The ASX participants in the Lyons Point Prospect are as below:

	Paying Interest % Initial Well	Working Interest % Initial & Subsequent Wells	Net Revenue Interest %
Tango Petroleum Ltd (TNP) Verus Investments Ltd (VIL) Kilgore Oil & Gas Ltd (KOG) Grand Gulf Energy Ltd (GGE) Other	23.00 20.00 13.33 6.67 37.00	17.25 15.00 10.00 5.00 52.75	12.95 11.25 7.50 3.75 64.55
	100.00	100.00	100.00

COMPETENT PERSONS STATEMENT : The information in this report has been reviewed by Mark Kramer (Registered Geologist, Texas USA), who has over 36 years experience within oil and gas sector. Mark Kramer consents to the inclusion in this report of the information in the form and context in which it appears. Mark Kramer is not a full time employee of the Company.

This report contains forward looking statements that are subject to risk factors associated with resources businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates.

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