ELIXIR ENERGY LIMITED — Capital/Financing Update 2011

Oct 9, 2011

ASX ANNOUNCEMENT

10 October 2011

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

Extension of Time Agreed for Tiger Farmout

Elixir Petroleum Limited (ASX:EXR) ( Elixir or the Company ) provides an update in relation to the farmout of the Tiger Prospect within Block 211/12b located in the UK North Sea.

The farmout of Block 211/12b is subject to the satisfaction of a condition precedent, being the obtaining by the proposed farminee of the consent of the UK Department of Energy and Climate Change to the assignment of interest and the approval of the farminee as the operator of the licence. Under the terms of the Farmout Agreement dated 8 July 2011 ( FOA ) the farminee had a period of three months ( Exclusivity Period ) from execution of the FOA to satisfy the condition precedent, failing which either party would then be able to terminate the FOA. The Exclusivity Period was due to expire on 7 October 2011.

Following a request received from the proposed farminee, Elixir has agreed to an extension of the Time Period to 5pm (GMT) Friday, 14 October 2011 to allow the farminee further time to achieve the condition precedent under the FOA.

A further update will be provided in due course.

Yours sincerely,

ELIXIR PETROLEUM LIMITED

Julie Foster Company Secretary

For further information on Elixir Petroleum please visit the Company's website at www.elixirpetroleum.com

ASX CODE: EXR www.elixirpetroleum.com

Elixir Petroleum Limited

ABN 51 108 230 995 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