DIGITALX LIMITED — Capital/Financing Update 2011

Jul 7, 2011

==> picture [175 x 79] intentionally omitted <==

ASX Announcement

8 July 2011

O.B. Ranch #2 Being Completed as Development Well

• O.B. Ranch #2 (Bongo #2) well successfully reaches target depth

• Logs indicate significant potential pay in Cook Mountain formation

• Logs also indicate pay in the Frio and Yegua formations.

• Fracture stimulation scheduled for July 2011

Verus Investments is pleased to announce that the O.B. Ranch #2 (Bongo #2) appraisal/development well in Wharton County, Texas, has reached its target depth of 13,200 feet. Electric line logs have been run and good log data has been obtained through the prospective sand intervals. The logs indicate pay in the targeted Cook Mountain formations with additional pay displayed in the shallower Frio and Yegua formations.

The Bongo #2 well, spudded on 17 May, is the second well to be drilled on the Bongo Prospect. Bongo #2 is the first Bongo appraisal/development well targeting the Eocene, Cook Mountain sands interval which is the primary interval currently producing in the O.B. Ranch #1 (Bongo #1) discovery well.

Analysis of the electric line logs, mud logs and core samples from the well have confirmed the operator’s geologic and seismic modelling, which hypothesised

==> picture [292 x 219] intentionally omitted <==

that the Bongo #1 discovery well (which originally targeted a deeper Wilcox structure) was producing from only the fringe of a more extensive Cook Mountain sand package. The Bongo #2 development well has been drilled closer to what is believed to be the centre of the Cook Mountain anomaly with the aim of targeting thicker pay sands whilst gaining valuable geologic knowledge of the Bongo/Cook Mountain sand to assist in understanding the potential of the regional Cook Mountain Sands.

Bongo #2 was designed to be drilled in a higher structural position than the Bongo #1 well, and both the log information and seismic data support a thicker pay section, better sorted, higher porosity sand within the Cook Mountain section than those found in the Bongo #1. Due to concerns in maintaining good downhole conditions, a micro imaging tool that was used in the Bongo #1 well, which helps to identify net effective pay, could not be used in Bongo #2.

Office Address: Ground Floor, 30 Ledgar Road, Balcatta, Western Australia 6021 Postal Address: PO Box 717, Balcatta, Western Australia 6914 Phone: +61 (0)8 9240 8645 Fax: +61 (0)8 9240 2406 Email: info@verus.com.au Web: www.verus.com.au

However, a high resolution triple combination logging tool was used which enables adequate definition of the lithology and potential pay sections within the wellbore. In addition good cores were obtained through the top Cook Mountain sands which will greatly assist with the rock and reservoir properties.

The operator is currently running production casing and preparing the Bongo #2 well for further completion operations in the Cook Mountain. The completion procedure will include a fracture stimulation program, which is scheduled for the end of July, 2011 subject to equipment availability. The initial rate will be announced following completion of the fracture stimulation and well testing program.

The log data also indicates potential pay in the shallower Frio and Yegua formations at approximately 5,530 feet and 9,000 feet respectively which will be assessed over the coming month.

Verus Investments executive director Greg Lee said: “Verus is very pleased with the results of the Bongo #2 well and the company is looking forward to working with Caza to fully understand and develop the Bongo prospect particularly in both the Cook Mountain Sands and the Yegua sands.

“The Frio sands were a welcome surprise and some work will be required to also define their potential.”

Bongo Prospect

The Bongo Prospect is located in Wharton County and is approximately 90km WSW of Houston, Texas. The prospect is in an AMI which encompasses approximately 2,667 gross acres (1,208 net acres). Caza Oil & Gas, Inc is the major working interest (WI) partner and operator. Verus Investments holds a 9.375% WI in this property.

The most likely resource potential of the prospect is 3 MMBBL and 25 BCF gas, with upside potential of up to 8 MMBBL and 73BCF gas.

For further information regarding the Company’s activities, please contact:

Mr. GregoryLee	Mr. Nathan Ryan
Executive Director	NWR Communications Investor Relations
Tel:(+61 8)9240 8645	Tel:(+61 0)420 582887

COMPETENT PERSONS STATEMENT: The information in this announcement that relates to oil and gas exploration results and hydrocarbon reserves is based on information reviewed by Mr Greg Lee, who is a petroleum engineer. Mr Lee is a Director of the Company. Mr Lee has more than 25 years’ experience in this discipline and he consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

2 | P a g e