ELIXIR ENERGY LIMITED — Capital/Financing Update 2010

Oct 31, 2010

ASX ANNOUNCEMENT

ABN 51 108 230 995

1 November 2010

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

By E-Lodgement

UKCS 26[th] LICENSING ROUND AWARDS - ELIXIR OFFERED NEW NORTH SEA LICENCE

Elixir Petroleum Limited (“Elixir” or the “Company”), the international oil and gas exploration and production company (ASX:EXR) is pleased to advise that following the announcement of the results of the UKCS 26[th] Seaward Licensing Round, Elixir has been provisionally awarded the Southern part of Block 30/25.

Block 30/25 is located in the Eastern margin of the Central UK North Sea. The Block is adjacent to the now abandoned Ardmore field (formerly named Argyll), which was the first offshore oil production in the UK producing almost 80 million barrels of oil. Block 30/25 has been offered by way of a promote licence to Elixir as operator and 100% interest holder.

Commenting on the announcement, Elixir’s Managing Director, Andrew Ross said:

“We are very pleased by the offer of this licence which complements and builds on our position in the UK North Sea. The Block contains several prospects which have been mapped on existing 2D seismic data. If successful, these prospects could have the potential to create significant shareholder value. We look forward to providing further details on the prospects to the market in the coming weeks.”

The award of Block 30/25 is subject to the finalisation of usual regulatory approvals.

Yours faithfully,

ELIXIR PETROLEUM LIMITED

Julie Foster Company Secretary

Information contained in this announcement with respect to the Block 30/25 (split), was compiled from material reviewed by the Company’s Executive Director - Exploration, Mr. I Knott, MSc (Hons), who has had more than 15 years experience in the practice of 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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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