ELIXIR ENERGY LIMITED — Capital/Financing Update 2008

Feb 25, 2008

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ASX RELEASE

26 February, 2008

SCHEME OPTIONS EXERCISED

Subsequent to the announcement lodged by Elixir Petroleum Limited (ASX:EXR, “Elixir” or “Company”) on 8 February 2008, please be advised that the total number of Scheme Options validly exercised prior to expiry was in fact as follows:

	Total number of SchemeOptions	Exercised prior toexpiry	%	Lapsed
Actual	8,107,611	7,880,139	97	227,472
As previously advised	8,107,611	7,855,139	97	252,472

The difference (25,000 shares) has arisen through an administrative error by Advanced Share Registry Services in relation to option exercise forms received prior to 8 February 2008, but not forwarded to the Company until after the expiry date.

Application forms have also been received subsequent to the option expiry date in respect of lapsed options. Elixir advises that no shares are able to be issued in respect of those or any future application forms which had not been received prior to the expiry date.

An Appendix 3B in respect of the 25,000 options described above was lodged earlier today.

Yours sincerely,

ELIXIR PETROLEUM LIMITED

Alex Neuling Company Secretary

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