ELIXIR ENERGY LIMITED — Regulatory Filings 2007

Jul 24, 2007

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

24 July 2007 Company Announcements Office ASX Limited

By e-Lodgement

Dear Sir / Madam

OPERATIONS UPDATE

High Island Field Development

Gawler Resources Ltd is pleased to provide an update on development operations currently being conducted in the High Island A-268 gas and oil field which is located in 166 feet of water offshore Texas in the Gulf of Mexico. The Company holds a 30% working interest in the High Island field (which is subject to a 5.4% “back-in” following recovery of Gawler’s initial investment).

Drilling Activities

The High Island Project operator, Peregrine Oil and Gas LP, has reported that the TODCO 250 jackup drilling rig moved into the field on 21 July 2007 and jacked-up over the recently installed HIA268A un-manned production platform. The rig spudded Well A-2, the second well on the High Island oil and gas field, at 0200 hours Central Daylight Time (“USA/CDT”) on 23 July 2007.

By report time at 0600 hours (USA/CDT) on 23 July 2007, the rig was drilling ahead in the 20 inch conductor hole at a depth of 675 feet Measured Depth (“MD”). The target depth of the 20 inch hole is 750 feet after which the 16 inch conductor will be set, being the first casing string. Thereafter, preparations will commence for the drilling of the14 ¾ inch hole section.

Well A-2 is a directionally drilled, deviated well targeting gas accumulations at two reservoir sand intervals at about 5,500 feet MD and 7,600 feet MD. Proposed total depth of Well A-2 is approximately 8,000 feet MD. If reservoir evaluation indicates that the zones can be economically produced, production casing will be run and the well completed for production.

The drilling and completion of Well A-2 is expected to take approximately 30 days and is scheduled to complete by late August. Gawler intends to report well progress on a weekly basis unless material events necessitate additional reports.

Following the drilling and completion of Well A-2, the rig will be skidded over to complete Well A-1. Well A-1 was drilled in January 2007 and discovered commercial gas in two separate reservoirs. The well was cased and temporarily suspended pending the installation of the HIA-268A production platform and pipeline.

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

The planned completion of Well A-1 will be of the deeper reservoir with a future completion of the shallower sands to follow the depletion, through production, of the deeper reservoir. The re-entry and completion for production of Well A-1 is expected to take approximately 20 days.

The High Island field development plan anticipates the drilling of a third production well, Well A-3. It is not anticipated that this well will be drilled, however, until the first two wells have been on production for a number of months.

Pipeline Laying Activities

Laying of the 6 inch production pipeline connecting the HIA-268A production platform to a nearby regional off-take facility, was completed at 2100 hours (USA/CDT) on 22 July 20007. Pipeline burial operations have commenced and it is expected that these operations will be completed in approximately 5 days.

Hydrocarbons produced from the High Island field will be metered and separated at the regional processing facility and then transported to shore via separate oil and gas sales pipelines. Commissioning and testing of the pipeline is scheduled to be completed in late August ahead of first production from the field.

Merger Update

As previously announced, preparation of the extensive documentation associated with the merger between Elixir Petroleum Ltd (ASX:EXR) and Gawler Resources Ltd, being undertaken by schemes of arrangement, is nearing completion.

The draft documents are expected to be lodged with the Australian Securities and Investments Commission for review by 31 July 2007. Court approval of the Schemes will then be sought, prior to the convening of Gawler security holders meetings to vote on 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.

In accordance with the Australian Stock Exchange requirements, the technical information contained in this report has been reviewed by P D Allchurch, BSc, FAIMM, MPESA, a consultant to Gawler. Mr Allchurch has in excess of 5 years experience in his field of activity and he consents to the inclusion in the report of the matters based on this information in the form and context in which it appears. Mr Allchurch holds shares in Gawler Resources Ltd.

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