ELIXIR ENERGY LIMITED — M&A Activity 2007

Sep 11, 2007

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Telephone: +61 8 9440 2650 Facsimile: +61 8 9440 2699

12 September 2007

Company Announcements Office ASX Limited

By e-Lodgement

Dear Sir / Madam

Merger Update

Gawler Resources Limited (“Gawler”) (ASX:GRL) and Elixir Petroleum Limited (“Elixir”) (ASX:EXR; AIM: ELP) are pleased to provide an update on the status of their proposed merger (“Merger”) being undertaken by Schemes of Arrangement (“Schemes”).

As previously advised the draft Scheme documents were lodged with the Australian Securities and Investments Commission (“ASIC”) for review on 31 July 2007. Upon completion of the ASIC review the Scheme documents were provided to the Federal Court (“Court”). A hearing was held in the Federal Court on 10 September 2007 with the Court ordering that the Scheme Meetings (shareholders and optionholders) be convened to consider the merger proposal. The Court order was lodged with ASIC on 11 September 2007 and has been registered.

The Scheme Booklet and all ancillary documentation are currently being printed and will be sent to shareholders and option holders of Gawler in the week beginning 17 September 2007. The documentation in relation to the Schemes is important and should be read in its entirety. Both sets of Gawler securities holders are entitled to vote on the proposal and are encouraged to do so. The Scheme meetings have been scheduled for 19 October 2007 with pertinent details provided within the Scheme Booklet. Should the Schemes be approved by the requisite number of Gawler security holders the Court will convene a second hearing, currently scheduled for 25 October 2007, to hear an application to approve and implement the Schemes.

Yours sincerely

Gawler Resources Ltd

Alex Neuling COMPANY SECRETARY

This report contains some references to forward looking assumptions, estimates and outcomes. These are uncertain by nature and no assurance can be given by Gawler that its expectations, estimates and forecast outcomes will be achieved.

Gawler Resources Ltd Level 20, 77 St Georges Terrace, Perth WA 6000 GPO Box 2530 Perth WA 6001