ELIXIR ENERGY LIMITED — Capital/Financing Update 2004

Jul 14, 2004

Elixir Petroleum Limited

Revised Expenditure Summary

(All in A\$)

Area	Project	Total Years 1&2
Acquisition and Alliance Deed commitments:
UKCS Block 21/6b:	Reimbursement of 21/6b Costs	213,200
	Drilling costs-Farm-In Agreement	520,000
	Further Block evaluation	100,000
	Technical Management Services	44,000
	Licensing Stamp Duty	40,000
	DTI Annual Fees and Rents	10,300
DTI Licensing Round 22	Round 22 Application Fees	446,420
Commitments (4 June 2004)
	Total – 2 years	1,473,920

Note: Estimates based upon exchange rate 2.60 AUD/£

Notes:

Additional Expenditure items:

• \$144,000 for Technical Management Services relate to Mr R Langusch, Managing $\bullet$ Director, in connection with his technical services agreement at the rate of \$90,000 per annum. It is estimated that In excess of 80% of Mr Langusch's time will be focussed on Block 21/6b processing and interpretation.
• \$40,000 for stamp duty is in relation to the duties payable on the acquisition $\bullet$ agreement for Block 21/6b, disclosed in the Prospectus page 16 at an incorrect line item.
• \$10,300 for DTI Annual Fees and Rents as disclosed on page 48 of the Prospectus $\bullet$ as annual fees of \$5,148 per annum.

In addition to the Exploration Expenditure Summary of \$1,473,920, issue costs of \$388,700 mean that committed expenditure for the next two years total \$1,862,620.

Total funds raised by the Company's IPO and seed capital raisings is \$3,713,650, 50% of which is \$1,856,825.