ELIXIR ENERGY LIMITED — Capital/Financing Update 2007

Nov 21, 2007

ASX RELEASE

22 November, 2007

OPERATIONS UPDATE

Elixir Petroleum Limited (“Elixir”) is pleased to announce that the merger between Elixir and Gawler Resources Limited (“Gawler”) completed on 13 November 2007, with Gawler being delisted from the ASX on that date. Former Gawler share and option holder should now be in receipt of Elixir holding statements which describe their new share and option holding interests in Elixir.

This update provides the first opportunity for Elixir to report on its interests acquired by way of the merger in the High Island and Pompano Projects.

High Island Field

The High Island Field is a gas and oil field located in 169 feet of water offshore Texas in the Gulf of Mexico. The field is surrounded by a number of producing fields and associated oil and gas infrastructure. Elixir, through its acquisition of Gawler, now holds a 30% working interest in the field. This interest is subject to a 5.4% ‘back-in’ arrangement which will take effect once Elixir has recouped its initial investment in the project.

During the course of the year, two production wells have been drilled, completed and tied back to a regional processing facility located nearby the High Island field. The wells were brought into production during September 2007. In the period following the issue of Gawler’s quarterly report on 31 October 2007, the wells have continued to flow steadily at approximately 17.5MMcf of gas per day and 200 barrels of condensate per day.

Sales proceeds from production for the month ended 30 September 2007 are expected to be received by Elixir in the next few days. We are advised by the operator that the average price realised for the sale of gas produced in September was US$6.18/mcf and for condensate was US$79.27/Bbl.

Future sale proceeds from production at High Island will be received by Elixir on a monthly basis.

Pompano Project

We are pleased to announce that the Joint Operating Agreement (“JOA”) for the Company’s Pompano project has been executed by each of the joint venture participants.

The Pompano Gas Field is located approximately 90 miles southwest of Houston and 30 miles east of Port O’Connor, Texas. It is located 7 miles off the coast in the Gulf of Mexico in approximately 55’ of water. The Pompano project has existing production facilities in place requiring only relatively minor refurbishment work to allow them to be utilised for production purposes.

Golden Cross House 8 Duncannon Street London WC2N 4JF Tel: +44 207 484 5019 Fax: +44 207 484 4992 Website: www.elixirpetroleum.com

Level 20 77 St George’s Terrace Perth WA 6000 Western Australia +61 8 9440 2650 +61 8 9440 2699 ABN 51 108 230 995

The execution of the JOA allows for the commencement of infield activities and it is anticipated that this work will be completed in the next 21 - 28 days at which time the drilling location will be ready for the rig to move onto site. The Operator has advised that negotiations with rig providers are advanced and final rig selection and contracting will take place in the near future.

The first well to be drilled is a commitment well and Elixir is able to participate in the drilling of an additional 5 wells in the Pompano field.

The participants in the Pompano Project are as follows:

Participant	Working Interest
Elixir Petroleum	25.0%
Buccaneer Resources	65.0%
Baron Petroleum	7.5%
Streamline Exploration	2.5%
TOTAL	100.0%

Yours sincerely, ELIXIR PETROLEUM LIMITED

Alex Neuling Company Secretary

Information contained in this report with respect to the High Island and Pompano Projects, was compiled from material provided by the project operators and reviewed by P D Allchurch, BSc, FAIMM, MPESA, who has had 40 years experience in the practice of geology including more than 5 years experience in petroleum geology. Mr Allchurch consents to the inclusion in this report of the information in the form and context in which it appears.

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