DIGITALX LIMITED — Capital/Financing Update 2011

Oct 16, 2011

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O ctober 17, 2 011

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

Lyons Point Wel l – Drilling Upda te#6

• 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 12,662 ft, first primary objective at 15,800ft

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

T he Pruitt et al #1, the initial test well for the Ly o ns Point Prospect w as spudded on 13 Septe m ber 2011 a n d is present l y drilling ah e ad at 1 2,662ft. Th e first primary objective is expected to be reach e d at 1 5,800ft in approximately 30 da y s after r u nning the final i n termediate casing string at 14,200ft. The well is b eing operat e d by C layton Willi a ms Energy Inc. under a turnkey f ixed cost drilling c ontract with Precision Drilling.

T he Lyons P o int Prospect will be drill e d to a tota l depth of 1 6 ,300 f e et. The pro s pect has a closure of cir c a 400 acres with a most likely resource pot e ntial of 3 M MBC (Million Barrels Co n densate) a n d 60 B CFG (Billion C ubic Feet G a s) with upsi d e potential o f 4 MMBC a n d 80 B CFG.

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T he Lyons P o int Prospec t is a seismically define d , upthrown fault b ounded structural closur e . The obje c tive section i s 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 feet thick. T h e MT sands are p roductive in several fiel d s in the im m ediate surr o unding are a and i n clude the n e arby Leleux F ield, which h as cumulati v e productio n of 5 MMBC and 300 BC F G from the M T 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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