ELIXIR ENERGY LIMITED — Major Shareholding Notification 2007

Oct 18, 2007

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

18 October 2007

Company Announcements Office ASX Limited

By e-Lodgement

Dear Sir / Madam

CLARIFICATION OF INITIAL SUBSTANTIAL HOLDER NOTICE

Gawler Resources Ltd would like to clarify the Form 603: Notice of Initial Substantial Holder announced this afternoon by Macquarie Bank Limited (“MBL”).

MBL currently holds 6 million of the 10.7 million convertible notes (“Notes”) issued by Elixir Petroleum Limited (“Elixir”) on 9 July 2007. The terms of the Notes provide that if the proposed merger by way of schemes of arrangement between Gawler and Elixir was not to proceed, each Note (at the election of the Noteholder), is either:

1. Redeemable at face value, plus interest within 90 days; or

2. Convertible into one new Elixir ordinary share; or

3. Capable of repayment by the transfer from Elixir to the Noteholder of one Gawler ordinary share.

Elixir currently holds 12,487,500 ordinary shares in Gawler, representing 18.01% of Gawler’s total ordinary shares on issue.

If the Schemes were not to proceed, MBL may elect to redeem some, or all, of their Noteholding by way of method 3 described above, and therefore may receive up to 6 million ordinary shares in Gawler. This would equate to approximately 8.65% of the total ordinary issued share capital of Gawler.

Yours sincerely

Gawler Resources Ltd

Alex Neuling COMPANY SECRETARY

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