ELIXIR ENERGY LIMITED — Capital/Financing Update 2016

Aug 16, 2016

ASX ANNOUNCEMENT

17 August 2016

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TRANCHE 2 PLACEMENT COMPLETED

Elixir Petroleum Limited (ASX:EXR) is pleased to announce that following receipt of Shareholder approval on 16 August 2016, it has completed Tranche 2 of the Placement announced on 12 July 2016 raising a further $205,962 before costs through the issue of 257,451,932 new shares (pre-consolidation).

As announced on 16 August 2016, the Company will now undertake a consolidation of its shares on issue on the basis that every twenty five (25) shares held will be consolidated into one (1) share. Subsequent to the share consolidation becoming effective, Elixir shareholders will be offered the right to participate in a 1:1 non-renounceable rights issue ( Rights Issue ) at effectively the same price as the new investors of the Placement which will raise approximately another $1.8 million before costs. Upon completion of the Rights Issue, the Company is expected to have approximately 179 million shares on issue (post consolidation) and will be well funded for future growth.

Proceeds from the Placement and Rights Issue will principally be used to progress the existing assets of the Company in addition to providing working capital to pursue new venture opportunities.

For further enquiries, please contact: Dougal Ferguson Managing Director +61 (8) 9226 2111

For further information on Elixir Petroleum, please visit the Company's website at www.elixirpetroleum.com

ASX CODE: EXR

www.elixirpetroleum.com

Elixir Petroleum Limited

ABN 51 108 230 995 338 Hay Street SUBIACO WA 6008, AUSTRALIA T: +61 8 9226 2111: E: info@elixirpetroleum.com