DIGITALX LIMITED — Capital/Financing Update 2011

May 22, 2011

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ASX Announcement

23 May 2011

LYONS POINT PROSPECT ACQUISITION AND FUNDING

Highlights

• Acquisition of 15% of Lyons Prospect

• Lyons Prospect has been ranked with a very high chance of success of 50 -66%

• Lyons Prospect is targeting 3 MMBC and 60 BCFG.

• Adjacent to Leleux Field which produced 300 BCFG and 5 MMBC

• Significant production rates estimated at 15,000 MCFD and 750 BCD

• Well anticipated to spud in Late August and take 45 days to drill

• Placement to fund participation of Lyons of $1.2m confirmed

Lyons Prospect, Acadia Parish, Louisiana, USA - Non Operator (15%WI)

The Board of Verus Investments Limited (ASX: VIL, the “Company”) is pleased to advise that it has signed a Participation Agreement to acquire a 15% working interest in the Lyons Point Prospect, operated by Clayton Williams Energy Inc (NASDAQ: CWEI) in Acadia Parish, Louisiana.

The prospect will be drilled to a total depth of 16,300 feet. The Lyons Point Prospect has a closure of circa 400 acres with a most likely resource potential is 3 MMBC (Million Barrels Condensate) and 60 BCFG (Billion Cubic Feet Gas) with upside potential of 4 MMBC and 80 BCFG. This estimate is conceptual in nature and insufficient activity has been conducted to determine a hydrocarbon reserve. The well is expected to take 45 days to drill and is planned to spud at the end of August 2011.

The Lyons Point Prospect is a seismically defined upthrown three-way structural closure that is bounded by faults on all four sides. The objective is the prolific Oligocene

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Marginulina Texana (MT) 1, 2, and 3 Sands, which are projected to be 700 feet thick.

The objective MT sands are productive in several fields in the immediate surrounding area. The main field fault is the same trapping fault that sets up Leleux Field, which has cumulative historical production of 5 MMBC and 300 BCFG from the MT interval.

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

Production rates are estimated to be significant given adjacent analog wells are producing at rates of 750 BBLCD (Barrels Condensate Per Day) and 15,000 MMCFD (Million Cubic Feet Gas Per Day). It is likely only four wells will be required to drain the structure.

The Company’s share of the initial dry hole well costs are estimated at US$1,150,000 (includes entry costs). In a success case the Company’s share of completion and facilities costs are estimated to be a further US$450,000.

The participation terms are favourable with the Company paying 20% to earn a 15% working interest. The net revenue interest is 75%.

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This prospect is best classified as a “develo-cat” well (between a development well and a wildcat well) based on the proximity of producing wells and full support of the prospect by modern, high quality 3D seismic data. Clayton Williams has addressed the four principle geologic risk factors; generation and migration of hydrocarbons from source to reservoir, reservoir quality, reservoir seal, and structure in a very complete manner, again mostly with the support of the 3D seismic data.

This prospect was chosen over numerous other opportunities due to the excellent quality of Geological and geophysical work performed developing the prospect and the risk mitigation undertaken.

The Board agree with the independent expert’s opinion that this prospect has a very high chance of success of somewhere in the region of 50-66%.

The Board also believes the operator to be of suitable competent experience to drill and manage this prospect in the best interest of all the partners.

Participants in the Lyons Prospect are as below:

Verus Investments Ltd (ASX:VIL) Tango Petroleum Ltd (ASX:TNP) Kilgore Oil & Gas Ltd (ASX:KOG) Other	Before Casing Point After Casing Point Initial Well Initial & Subsequent Wells
	20.00 15.00 23.00 17.25 20.00 15.00 37.00 52.75
	100.00 100.00

Placement

The Board is pleased to confirm that it has received commitments for the issue of 120m shares at 1 cent and 60m free attaching listed options (ASX: VILO) to raise ~$1.2m which will be used towards participation in the Lyons Prospect. The funds will be raised from sophisticated investors utilising the Company’s 15% capacity under Listing Rule 7.1.

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For further information in respect of the Company’s activities, please contact:

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

COMPETENT PERSONS STATEMENT : The information in this report has been reviewed and signed off by Mr Mark Kramer (Registered Geophysicist, Texas USA), with over 36 years respective relevant experience within oil and gas sector.

This report contains forward looking statements that are subject to risk factors associated with oil and gas 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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