ELIXIR ENERGY LIMITED — Capital/Financing Update 2008

Mar 31, 2008

==> picture [125 x 101] intentionally omitted <==

ASX RELEASE

1 April, 2008

COMMENCEMENT OF 3D SEISMIC ACQUISITION ON BLOCK SL-4, OFFSHORE SIERRA LEONE

Elixir Petroleum Limited is pleased to announce the commencement of a 3D seismic acquisition programme on Block SL-4, offshore the Republic of Sierra Leone, West Africa (“Block SL-4”).

As the operator of Block SL-4, Elixir has contracted a leading international seismic acquisition provider to undertake the programme on behalf of the Block SL-4 joint venture. The vessel conducting the survey commenced acquiring data on Block SL-4 on 30 March 2008 and will acquire 1,222 km[2] of 3D seismic. This is an enlarged programme to that previously announced, although the terms of the seismic acquisition agreement are consistent with previous advice.

The 3D survey is designed to better define and mature the large number of significant leads and play types identified from 2D seismic data acquired over Block SL-4 in 2003.

It is expected that on a trouble free basis, seismic acquisition activities will be completed and the vessel released by early June 2008. The data acquired will be processed in Europe by the seismic contractor, ahead of detailed interpretation studies by Elixir’s exploration team based in London.

The undertaking of the 3D seismic survey satisfies the agreed minimum work programme for the First Exploration Period under the Petroleum Agreement governing Block SL-4.

Commenting on the announcement the Managing Director of Elixir Petroleum, Andrew Ross, said:

“We are delighted to have been able to commence in-field operations so soon after becoming operator of Block SL-4. We are confident that the 3D data set will lead to the generation of high quality, drill ready prospects which should be available for farm-out to drill in the first half of 2009. We look forward to making further releases regarding progress at Block SL-4 in the coming months.”

Yours sincerely,

Alex Neuling Company Secretary Elixir Petroleum Ltd

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

Background to Block SL-4 Exploration Project -

Block SL-4 is an exploration block covering an area of 4,429 km[2] lying offshore the Republic of Sierra Leone (see Figure 1 below). Only two prior exploration wells have been drilled offshore Sierra Leone, both in the mid 1980’s. Each well was drilled in shallow water and encountered hydrocarbons. One well lies within the boundary of Block SL-4.

As previously advised, Elixir is acquiring an interest of up to 35% in Block SL-4 on ground floor terms and has been appointed Operator.

==> picture [465 x 318] intentionally omitted <==

Figure 1: Location Map

2