ELIXIR ENERGY LIMITED — Capital/Financing Update 2008

Sep 9, 2008

ASX ANNOUNCEMENT

ABN 51 108 230 995

10 September 2008 Company Announcements Platform Australian Securities Exchange Level 4 20 Bridge Street SYDNEY NSW 2000 By E-Lodgement

OPERATIONS UPDATE

Elixir Petroleum Limited (“Elixir”, ASX:EXR, AIM:ELP), the international oil and gas exploration and production company, is pleased to provide an operations update.

Hurricane Gustav and Hurricane Ike

Elixir’s operations at the High Island and Pompano projects located in the Gulf of Mexico were not adversely affected by the passage of Hurricane Gustav through the Gulf of Mexico last week. As a precautionary measure, the High Island field was shut-in for a period of about four days and personnel withdrawn from the connected offshore installations. However, operations at High Island have now resumed with both wells back on production at a combined rate of approximately 4MMscf of gas per day and 200 barrels of condensate per day.

Production was not shut-in at the Pompano field as it was outside the area affected by Hurricane Gustav.

The operator at the Pompano Project has also reported that the Hercules 152 jack-up drilling rig, which is contracted to drill the third development well at Pompano, was similarly not damaged by Hurricane Gustav although it was down-manned.

Hurricane Ike has recently entered the Gulf region and is presently being closely watched. We have been advised that the Hercules 152 rig will again be down-manned as a precaution and this will delay the mobilisation of the rig to the Pompano location. We will keep the market advised of developments in relation to the passage of Hurricane Ike and the likely spud date for the third development well at the Pompano Project.

Mulle Data Room

Elixir is also pleased to report that the proposed appraisal programme for the Mulle project has been finalised and a data room in relation to the project has opened. A number of companies have been invited to enter the data room for the purpose of partnering the existing Mulle participants in the appraisal of the field.

ASX CODE: EXR www.elixirpetroleum.com

Elixir Petroleum Limited

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

The Mulle appraisal project is located in the Northern Sector of the UK North Sea. 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 Group reservoirs, but was not flow tested at the time.

Elixir holds a 40% interest in Block 211/22b which contains the Mulle accumulation.

Yours faithfully,

Alex Neuling Company Secretary Elixir Petroleum Ltd

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