ELIXIR ENERGY LIMITED — Capital/Financing Update 2013

Apr 4, 2013

ASX ANNOUNCEMENT

5 April 2013

Market Announcements Office ASX Limited Level 8, Exchange Plaza 2 The Esplanade PERTH WA 6000

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Project and Corporate Update

Elixir Petroleum Limited (“Elixir” or the “Company”) (ASX:EXR) provides an update on the Company’s projects and information concerning initiatives to streamline the Company’s activities, reduce operating costs and pursue new venture opportunities.

Moselle Project

As previously announced, a number of significant conventional gas targets have been identified by the Company within the Moselle Permit utilising newly reprocessed 2D seismic and other geological and petrophysical data. In late 2012, the Company initiated a farmout process in relation to this very large conventional hydrocarbon prospectivity to seek a partner to assist in the further definition, and ultimately drilling, of these targets. Elixir is pleased to report that several interested parties are currently in the data room and we continue to attract new parties to the process.

The Company is also in the process of obtaining an independent resource certification in relation to the largest of its conventional prospects at Moselle to assist in preparing the forward work programme for the design, permitting and acquisition of 2D seismic data over these prospects. The Company looks forward to provide more information to the market on these matter in due course.

As noted in the recently published half year report and accounts, the Company has spent over €3 million as at the end 31 December 2013 on activities associated with the Moselle Project. This is in excess of the work programme obligations required during the first five year term of the permit. The Company will therefore be preparing the work necessary in the second half of 2013 to move the Moselle Permit into the second exploration term, which is due to commence in early 2014.

Board Restructure & Cost Reductions

As a result of the decision to reduce exposure to the UK North Sea, the Company has closed its UK based office, effective as of 28 March 2013. Commercial and technical responsibility for the Company’s remaining licence interest in the UK North Sea and the Moselle Project has been migrated to the Perth office, where additional consulting geological and geophysical technical support has also been retained.

With the closure of the UK office and a reduction in the executive management requirements of the Company, Mr Andrew Ross has decided to step down as Managing Director of the Company, but will continue to support the Company and oversee its management in a part time capacity.

At 31 March 2013, the Company held approximately $1.5 million in cash on hand and remains debt free. The rationalisation of the Company’s business through the closure of the UK office and the implementation of certain other cost saving initiatives are expected to reduce the Company’s operating costs by approximately half on a go forward basis. The Board is of the view that the

ASX CODE: EXR

www.elixirpetroleum.com

Elixir Petroleum Limited

ABN 51 108 230 995 Level 1, 89 St George’s Terrace PERTH WA 6000, AUSTRALIA T: +61 8 9226 2111 F: +61 8 9226 2099 E: info@elixirpetroleum.com

Company continues to retain the appropriate management, technical and commercial support for its current and forecast level of activity.

Future Strategic Direction

The Board believes that the Moselle project remains the most prospective asset within its portfolio, and the actions described above are intended to continue to focus the company on extracting value for shareholders from this asset. To this end, the Company has recently appointed Argonaut Capital as its Financial Adviser to assist it in this process and to assist in the review of other corporate and asset opportunities for the Company.

Yours sincerely, ELIXIR PETROLEUM LIMITED

Nicholas Ong Company Secretary

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

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