ELIXIR ENERGY LIMITED — Regulatory Filings 2004

Aug 12, 2004

13 AUGUST 2004 MARKET RELEASE

ELIXIR PETROLEUM LIMITED COMPANY UPDATE

The Directors of Elixir Petroleum Limited (ASX: EXR) are pleased to provide an update on the Company's activities since listing on the Australian Stock Exchange on 19 July 2004.

Elixir and its UK-based partner. Granby Enterprises, have applied for a number of blocks in the current UKCS 22^nd Licensing Round for which applications closed on 4 June 2004. The Company is hopeful of securing several blocks when they are released by the UK Department of Trade & Industry (DTI) in early September 2004.

Elixir has a 15% participating interest in the Marquis well in Block 21/6b which will be drilled later this year. Marquis is considered to be a relatively low risk, high reward prospect with an estimated potential of 143 million barrels. Marquis is located approximately 35km west of the giant Forties oil field.

Elixir Managing Director Russell Langusch said the Company remained the only junior oil and gas stock that offered Australian investors exposure to what remains one of the world's premier oil provinces.

"The considerable support for Elixir's listing on the ASX, and the continued trading support experienced over the past month since listing is recognition and further support for the potential in the North Sea and a confidence in the team who have brought it to market," said Mr Langusch.

Perth-based investment banking firm Argonaut Capital advised Elixir on its strategy and IPO.

-ENDS-

About Elixir Petroleum

Elixir Petroleum was established to capitalise on a number of converging factors that created the rare opportunity to build a North Sea focused oil and gas exploration company. The Company has an experienced management team that has a strong background in oil and gas exploration and field development, as well as prudent fiscal management and administration.

For more information about Elixir, please contact:

Russell Langusch Managing Director Elixir Petroleum 0411 725 858

Or visit:

www.elixirpetroleum.com.

9a Agnew Way Subiaco WA 6008 +618 9382 3200 +618 9388 8042 admin@elixirpetroteum.com

P.O. Box 1905 Subiaco W.A. 6904 ABN 51-108-230-995

www.elixirpetroleum.com