ELIXIR ENERGY LIMITED — Capital/Financing Update 2008

Nov 16, 2008

ASX ANNOUNCEMENT

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ABN 51 108 230 995
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17 November 2008

Company Announcements Platform Australian Securities Exchange Level 4 20 Bridge Street SYDNEY NSW 2000

By E-Lodgement

Successful Result in UKCS 25[th] Licensing Round

Elixir Petroleum Limited (“Elixir”; ASX:EXR, AIM:ELP), the international oil and gas exploration and production company, is pleased to announce that it has been awarded interests in Blocks 211/27d and 211/12b in the UK Continental Shelf 25[th] Seaward Licensing Round (“the Round”), further consolidating the Company’s position in the northern sector of the UK North Sea.

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Figure 1: Licence Locations

Block 211/27d – Extension of Mulle Project

Block 211/27d is located immediately adjacent to Block 211/22b, which contains the Mulle appraisal project (see Figure 1 above). Block 211/27d hosts a mapped southern extension of the

ASX CODE: EXR

Elixir Petroleum Limited

www.elixirpetroleum.com

Level 20, 77 St George’s Terrace PERTH WA 6000, AUSTRALIA T: +61 8 9440 2650 F: +61 8 9440 2699 E: info@elixirpetroleum.com

Mulle accumulation. Mulle was discovered through the drilling of an exploration well in the 1970’s which encountered a 17m gross oil column in the middle Jurassic Brent sequences, but was not flow tested at the time. In May 2008, the block operator published a most likely in-place resource estimate of 17 million barrels of oil, providing Elixir with a net interest of almost 7 million barrels of oil. With the award of Block 211/27d, this resource estimate is likely to increase. Elixir holds a 40% working interest in Block 211/22b and the newly awarded Block 211/27d.

Block 211/12b – Tiger Prospect

Block 211/12b is located in the Northern North Sea, approximately 140km north east of the Shetland Islands, in a water depth of approximately 125m (see Figure 1 above). Block 211/12b contains a newly mapped prospect named Tiger. The block lies 5km to the east of the Magnus Field which was brought on-stream in 1983 with an in-place volume of approximately 1.5 billion barrels of oil.

The target reservoir in the Tiger prospect is the Magnus Sandstone Member, over 500 ft of which was encountered in the down dip 211/12b-15 well (see Figure 2 below). The equivalent sands in the nearby Magnus Field have excellent porosity and permeability characteristics. Evidence from the 211/12b-5 well also indicates the presence of a nearby hydrocarbon column. Reservoir presence and quality are considered to be low risk as is hydrocarbon charge.

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Figure 2: Top Tiger Fan Depth Map

Elixir’s original oil in-place volumetric resource estimate for the Tiger prospect is as follows:

	P90 (mmbbls)	P50 (mmbbls)	P10 (mmbbls)
STOOIP*	37	90	214

* If hydrocarbon bearing

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Elixir holds a 100% working interest in the block and is operator. The Block has been awarded for a licence term of 4 years with a drill or drop decision required at the end of year 3.

The execution of the licence agreements with the UK Government for Blocks 211/12b and 211/27d will occur in the coming weeks.

Commenting on the announcement, Elixir’s Managing Director, Andrew Ross, said “we are delighted to have been awarded interests in two blocks in the recent 25[th] Round. This is the fourth time Elixir has participated in the Seaward Licensing Rounds in the UK with success. The securing of Block 211/27d adds to our Mulle acreage position and should see an uplift in the mapped resource estimate for the field.”

He also added, “Block 211/12b, which contains the Tiger prospect, is an exciting and significant addition to our portfolio of interests in the Northern North Sea and we are looking forward to working up the prospect to drill ready status over the coming months.”

Yours faithfully,

Alex Neuling Company Secretary Elixir Petroleum Ltd

For further information, please visit Elixir’s website at www.elixirpetroleum.com

Information contained in this report with respect to Block 211/12b, was compiled by Elixir and reviewed by Elixir’s Executive Director – Exploration, Mr I Knott, MSc, FGS, AAPG, who has had more than 25 years experience in the practice of geology, including more than 5 years experience in petroleum geology. Mr Knott consents to the inclusion in this report of the information in the form and context in which it appears.

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