ELIXIR ENERGY LIMITED — Board/Management Information 2004

Oct 5, 2004

ASX RELEASE 6 October, 2004

SENIOR MANAGEMENT APPOINTMENTS & LONDON OFFICE

The Directors of Elixir Petroleum Ltd (ASX: EXR) are very pleased to announce a significant strengthening of the Company's management team and major organisational changes designed to maintain the established momentum as a fast-growing North Sea oil & gas explorer.

Establishment of London Office

Elixir will be opening an office in London within the next few weeks in order to manage its expanding North Sea asset portfolio. After floating in July 2004 with only one asset (a 15% interest in Block 21/6b), the Company has since been offered a further nine offshore blocks by the UK Department of Trade & Industry in the recent 22^nd Licensing Round.

In addition the Company is also pursuing a number of other opportunities to consolidate its acreage position in this prolific oil & gas province. A dedicated UK management presence will allow Elixir to assess such opportunities expeditiously and to capitalise upon new business avenues that are constantly emerging in this active oil & gas asset market.

The London office will be staffed by a number of Elixir executives together with experienced consultants where appropriate.

Appointment of Angus MacAskill, Executive Director - Business Development

Angus MacAskill has been appointed as an Executive Director of Elixir Petroleum responsible for Business Development. He will form a key link in the London-based management team.

Angus has more than 23 years' experience in the upstream oil & gas sector. He graduated with a BSc (Hons) from Edinburgh University in 1981 and has subsequently gained an MSc in Petroleum Engineering from Heriot Watt University, Edinburgh, and an MBA from Aberdeen University.

He has accrued extensive experience in many roles including engineering, marketing and business development. His career has spanned six years with Schlumberger in Africa, almost ten years with Mobil in the UK and Norwegian North Sea and five years with Enterprise Oil in senior business development roles.

Angus' skills, experience and contacts will provide an important element in the Company's growth plans.

Angus said "I am delighted to be joining Elixir at this time and I am looking forward to working in the management team to build the company in this exciting oil & gas environment."

As part of Angus' remuneration he will be issued 2,000,000 options to subscribe for ordinary shares. The options will be issued in 2 tranches, 1,000,000 options expiring on 31 December 2007 at an exercise price of \$0.90 and 1,000,000 options expiring on 31 December 2007 at an exercise price of \$1.30.

250,000 options in each tranche will vest with Angus upon shareholder approval. The balance will vest 12 months later should Angus continue with the Company. The full terms and conditions for the options will be detailed in the Notice of Meeting of the Company. The meeting will be held in approximately $6 - 8$ weeks.

Relocation of Russell Langusch, Managing Director

Russell has agreed to assume a full-time role as Elixir's Managing Director.

He will be relocating to the UK early in 2005 and lead the London-based management team.

As part of Russell's remuneration he will be issued 3,000,000 options to subscribe for ordinary shares. The options will be issued in 2 tranches, 1,500,000 options expiring on 31 December 2007 at an exercise price of \$0.90 and 1,500,000 options expiring on 31 December 2007 at an exercise price of \$1.30.

375,000 options in each tranche will vest with Russell upon shareholder approval. The balance will yest 12 months later should Russell continue with the Company. The full terms and conditions for the options will be detailed in the Notice of Meeting of the Company.

The Company is also looking to appoint a senior explorationist, that together with the Managing Director and Executive Director - Business Development will provide a core team of senior executives to take Elixir forward.

Russell Langusch Managing Director Elixir Petroleum Limited

For more information contact Russell Langusch +61 411 725 858 (Mobile - Australia) +44 7840 523 771 (Mobile - UK) russell@elixirpetroleum.com