DIGITALX LIMITED — Investor Presentation 2009

Oct 15, 2009

INVESTOR PRESENTATION OCTOBER 2009

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Disclaimer

• This presentation has been prepared by Verus Investments Limited (“ Verus ” or the “ Company ”) and is being provided for the sole purpose of providing preliminary background financial, operational and other information to enable shareholders to review the business activities of the Company. It is not intended as an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities.

• The information in this report relating to Exploration Results and Mineral Resources is based on information compiled by Mr Greg Lee who is a Member of the Australian Institute of Geoscientists and has sufficient exploration experience which is relevant to the style of mineralization under consideration to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Lee is a Non‐executive Director of Verus. Mr Lee consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

• This presentation should not be relied upon as a representation of any matter that a potential investor should consider in evaluating the Company. The Company and its respective directors, agents, officers or employees do not make any representation or warranty, express or implied, as to or endorsement of, the accuracy or completeness of any information, statements, representations or forecasts contained in this presentation, and they do not accept any liability for any statement made in, or omitted from, this presentation.

• This presentation 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, resource 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.

• Before acting in reliance on any information contained in this presentation, potential investors should conduct their own investigation

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Company Overview

• Verus Investments Limited (“ Verus ”) is an Australian‐ based investment company

• Listed on Australian Stock Exchange (ASX Code: VIL)

• Natural resources focus

• Direct project involvement

• Target investments in oil & gas exploration which are

• Low Risk

• Low Cost

• High Impact

McNeil Nominees Pty Limited 13.92%

CURRENT SHARE PRICE	A$	1.8c
52 WEEK HIGH – 10 OCT	A$	2.2c
2008
52 WEEK LOW – 13 MAR	A$	0.1c
2009
SHARES OUTSTANDING	mn	549.1
DILUTED OPTIONS
‐LISTED (EX PRICE: 10 C)	mn	239.2
‐UNLISTED (EX PRICE: 1.5 C)	mn	1.0
DILUTED SHARES	mn	714.3
MARKET CAPITALIZATION	A$mn	9.9
TOTAL DEBT	A$mn	‐

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Experienced Board & Management Team

Mr. Andrew McIlwain Chairman & Non‐Executive Director

Mr. Michael Montgomery Non‐Executive Director

• •Over 20 years experience in the mining industry & a qualified mining engineer

• •A geologist with over 15 years’ experience in the minerals sector

• •Has held technical, senior management and executive roles at Lafayette Mining Limited, Mount Isa Mines Limited, Central Norseman Gold Corporation Limited, WMC Resources Limited & Lafayette Mining Limited

• •Currently Chairman of ASX‐listed Emmerson Resources Limited

• •Has held senior positions in both exploration and operations at Consolidated Minerals, Goldfields Australia and KCGM (Barrick‐Newmont JV)

• •Has worked with a diverse range of commodities including gold, copper, diamonds, nickel, manganese, chromite & iron ore

• •Has undertaken post‐graduate studies in mineral economics & mine planning; member of AusIMM

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Mr Greg Lee

Non‐Executive Director

• •A qualified chartered professional engineer (CPEng) with over 28 years experience in the petroleum industry focussing on oil & gas field development, management & operations, petroleum/production engineering & drilling operations

• •Actively involved in development, management and listing of 2 European focussed Oil and Gas companies on

Mr. David Calcei Non‐Executive Director

• •A Chartered Accountant with over 10 years experience

• •A director of Icon Financial Management, an accounting & tax practice providing taxation, corporate and consultancy services to small to medium sized entities & public companies, principally in the resource sector

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Creating Value in the Energy Industry

• Capturing energy assets in an environment of rising oil & gas prices

• Increasingly difficult to source and secure projects with significant upside for fair value

• Oil and gas production acquisitions are becoming overvalued

• Commercialising identified oil and gas opportunities

• Provision of investment capital/finance

• Identifying markets for the sale of oil and gas

• Working with new technologies

• Exploration and Appraisal (“E & A”)

• Value creation in the oil & gas business will come through E & A drilling

• Least capital intensive and greatest value‐addition potential

• Understanding, evaluating & exploiting these opportunities is a key strength of Verus

• Verus has now secured an excellent asset with potentially huge upside

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The Energy Sector is a Risky Business

Macroeconomic Political

Fiscal

Exploration Appraisal Development

Operational

Legal

Regulatory

Production

Environmental

Price

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Mitigate Risks Where Possible

Macroeconomic Natural currency hedge

Political Stable democratic government

Fiscal Regulatory Sophisticated state level Relatively benign tax administration environment Fast approval process

Exploration

Appraisal

Salt dome plays 3‐D seismic coverage 3‐D seismic coverage Good well control

Development

Experienced operator Low cost drilling Established local/regional infrastructure and market

Production

Analog production Good flow rates possible

Price

Operational

Legal

Environmental

Qualified and

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What Are Salt Domes?

• Mushroom‐shaped formation made of salt

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• Formed when large plugs of salt are forced up, pushing up overlying layers – lava lamp

• Typical salt dome is at least 2 km high

• Some are known to be higher than 10 km

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Why Do We Find Oil & Gas Around Salt Domes?

• With enough heat and

• pressure, salt will slowly flow upward

• Salt pushes aside and breaks

• through many layers of rock in its path until it breaks through to the Earth's surface

• This ultimately creates oil traps

• Nearly all of the salt domes in along the Gulf Coast have a disk‐like cap‐rock up to 300m thick

• Results from ground water

• interacting with the salt surface

• Excellent sealing capabilities

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Louisiana Salt Domes

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As Verus’ Louisiana project is
covered by 3‐D seismic and sits
on a known producing salt dome,
it is considered relatively low risk
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• Excellent address for oil & gas

exploration

• 4[th] ranked producer of crude oil & 5[th] ranked producer of natural gas in the US

• Over 210,000 wells drilled

• Proven & prolific salt dome region

• 204 are known to exist

• 77 located offshore

• Many mature oil & gas fields in southern Louisiana are piercement salt domes

• Complex geologic structure

• Fragmented (although prolific) reservoirs

• New technology has created

opportunity

• Majority of fields in southern Louisiana have been producing for over 40 years

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Fausse Point Salt Dome

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Fausse Point Project – Iberia Parish, Louisiana

Excellent Exploration Address

• •Situated on undeveloped segment of Fausse Point salt dome

• •Surrounding fields have produced over

• 44 MMbbls of oil

• 2 MMbbls of condensate

• 141 BCF of gas

• Verus has secured a 50% working interest in the Fausse Point project

• Others Verus 50% 50% • Exposes investors to large upside in the event of exploration success

Upcoming Drilling Program (Q4 2009)

• Primary shallow oil (7,000‐8,000 ft); and

• Deeper secondary gas (7,500‐9,000 ft)

• Relatively inexpensive drilling costs – Approx. US$1mn

• Low drilling risk well

Highly Prospective

Base Case

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Upside Case

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Fausse Point Prospect

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• Discovered 1926

• Piercement salt dome

• Producing from Miocene & Oligocene age sands

• Targeting pinch out of reservoirs onto flank of salt dome

• Typically an effective trap‐seal combination

• Target reservoirs: <9000 ft Lower Miocene sandstones

• Shallower oil interval with pay up to 150ft thick

• Slightly deeper gas interval with pay up to 120 ft thick

• Low risk

• 30‐40% POS

• Excellent productivity potential[(1)]

• Good reservoir pressure

• 31% porosity

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Leveraged Return Potential

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|||||
|---|---|---|---|
|CURRENT SHARE PRICE|A$|1.8c|
|52 WEEK HIGH – 10 OCT|A$|2.2c|
|2008|
|52 WEEK LOW – 13 MAR|A$|0.1c|
|2009|
|SHARES OUTSTANDING|mn|549.1|
|DILUTED OPTIONS|
|‐|LISTED (EX PRICE: 10 C)|mn|239.2|
|‐|UNLISTED (EX PRICE: 1.5 C)|mn|1.0|
|DILUTED SHARES|mn|714.3|
|MARKET CAPITALIZATION|A$mn|9.9|

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Valuation (A$ cents per share) [(2)(3)] 40.5
34.2
29.2
27.9
24.8
20.4
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|||
|---|---|
|‐|
|TOTAL DEBT|A$mn|

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Base Case
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Upside Case

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A Low Risk, High Reward Investment Proposition

Minimise Risk

• Stable political and regulatory regime

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• Onshore

• Prolific hydrocarbon address

• Salt dome play

• Shallow drilling depths

• Qualified operator

• Production analogs

• 3‐D seismic coverage

• High probability of success

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Maximise Returns

• Low entry cost

• Low drilling cost

• Attractive fiscal regime

• Premium commodity pricing

• Nearby underutilised infrastructure

• Near‐term cashflow

• Small capitalised corporate structure