ELIXIR ENERGY LIMITED — Capital/Financing Update 2008

Jul 7, 2008

ASX ANNOUNCEMENT

ABN 51 108 230 995

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

ALLOTMENT OF SHORTFALL SHARES

Elixir Petroleum Limited (“Elixir”, or “Company”), the international exploration and production company advises that the Company has completed the allotment and issue of 5,920,000 new fully paid ordinary shares at $0.27 per share to professional and sophisticated investors (“Shortfall Shares”). Placement of the Shortfall Shares was previously announced to the market on 2 July 2008.

Elixir expects that holding statements will be despatched to shareholders on or before 11 July 2008. An Appendix 3B in relation to the issue will be lodged later today.

Secondary Trading Exemption Notice

The Corporations Act 2001 (“Act”) restricts the on-sale of securities without disclosure, unless the sale is exempt under Section 708 or 708A of the Act. By Elixir giving this notice, on sale of the Shortfall Shares will fall within the exemption offered by Section 708A (5) of the Act.

Elixir hereby notifies the ASX (as the operator of the prescribed financial market on which the Shortfall Shares are to be quoted) under Section 708A(5)(e) of the Act that:

• (a) Elixir issued the Shortfall Shares without disclosure to investors under Part 6D.2 of the Act;

• (b) As at the date of this notice Elixir has complied with the provisions of Chapter 2M of the Act as they apply to Elixir and with Section 674 of the Act; and

• (c) As at the date of this notice there is no “excluded information” as defined in Section 708A(7) and (8) of the Act in relation to Elixir.

Yours faithfully,

Alex Neuling Company Secretary Elixir Petroleum Ltd

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