ELIXIR ENERGY LIMITED — Share Issue/Capital Change 2012

Jan 17, 2012

ASX ANNOUNCEMENT

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ABN 51 108 230 995

18 January 2012 Company Announcements Platform Australian Securities Exchange Level 4 20 Bridge Street SYDNEY NSW 2000 By E-Lodgement

UNMARKETABLE PARCEL PROGRAM

Elixir Petroleum Limited (“Elixir”) has implemented an Unmarketable Parcel Program to provide an opportunity for eligible small shareholders to either sell their shareholding without incurring any brokerage or handling costs, and in the case of Australian and New Zealand based small shareholders, the opportunity to instead top-up their shareholding, again without incurring brokerage or handling costs.

A small shareholder is a holder of Elixir shares with a market value of less than $500 as at 22 December 2011. Elixir is undertaking this program to reduce the significant administrative cost of managing small shareholdings.

The closing date for small shareholders to elect to either retain, sell or top-up their shareholding in Elixir is 5pm (AEDT) on Tuesday, 14 February 2012.

Details of the Unmarketable Parcel Programme are contained in the attached letters which were sent to eligible small shareholders on Thursday, 29 December 2011.

Yours faithfully,

ELIXIR PETROLEUM LIMITED

Andrew Ross Managing Director

ASX CODE: EXR

www.elixirpetroleum.com

Elixir Petroleum Limited

Level 20, 77 St George’s Terrace PERTH WA 6000, AUSTRALIA T: +61 8 9440 2650 F: +61 8 9440 2699 E: info@elixirpetroleum.com

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29 December 2011

Dear Shareholder,

Unmarketable Parcel Program

Elixir Petroleum Limited ( Elixir ) is pleased to provide you with an opportunity to sell or increase your shareholding without incurring brokerage or handling costs. This program is open to all Shareholders who at 7pm (AEDT) on Thursday, 22 December 2011 ( Record Date ) held fully-paid ordinary shares in Elixir with a value of less than $500 ( Unmarketable Parcel ).

Our records show that at the Record Date you held an Unmarketable Parcel of Elixir shares and hence you are eligible to participate in this program. This program closes at 5pm (AEDT) on Tuesday, 14 February 2012 ( Closing Date ).

The Program is being conducted to enable Elixir to reduce the significant administrative cost of managing small shareholdings. It will enable investors with unmarketable holdings, who may find it difficult or expensive to dispose of those shares through normal means, to dispose of their holdings in a cost effective manner. Alternatively, the Top-up Facility provides an opportunity for shareholders to increase their shareholding in Elixir above an Unmarketable Parcel without incurring brokerage or handling costs.

Information in this letter and in the enclosed documents will assist you in making one of three choices:

• Option 1 - Sell your holding (In which case, do nothing ) Option 2 - Increase your holding by buying either $500, $1,000 or $2,000 worth of additional shares (Use the Top-up Facility by completing sections ‘D’ and ‘E’ and make payment)

• Option 3 - Retain your holding (Complete Sections ‘C’ and ‘E’ of the enclosed form)

You can only choose one option. You may elect to participate in the Unmarketable Parcel Sale Facility (Option 1) or the Top-up Facility (Option 2), or you may choose Option 3 (retain your Unmarketable Parcel if you return the Share Retention Form).

Option 1 - Sell your holding (DO NOTHING)

If you do nothing, your Elixir shares will be pooled with other Elixir shares that are to be sold under the Facility and will be sold on the Australian Stock Exchange ( ASX ) as soon as practicable after the Closing Date. The gross proceeds from sale will be remitted to you as soon as practical, and in any event by no later than Friday, 2 March 2012.

If your shares are in a CHESS holding and are to be sold under the Unmarketable Parcel Sale Facility, you should note that Elixir may without further notice sell the relevant shares, or initiate a holding adjustment to move those shares to an issuer sponsored holding for the purposes of the sale.

Elixir will bear all brokerage and handling fees related to sale of shares under this facility. The price that will be paid to shareholders for each share sold through the Unmarketable Parcel Sale Facility will be the average price received for the sale of all shares sold on the ASX under the Unmarketable Parcel

Level 20, 77 St George’s Terrace Perth, Western Australia 6000 Tel: +61 8 9440 2650 | Fax: +61 8 9440 2699 Website: www.elixirpetroleum.com | ABN 51 108 230 995

Sale Facility and hence, may be more or less than the actual price that is received for your particular parcel of shares. This average price will be determined by dividing the total proceeds from the sale of all shares sold under this Program for all participating holders by the total number of shares sold under this Program. Sales will be conducted after the Application Period, namely, on market from 14 February to 24 February 2012.

Option 2 - Increase your holding (USE TOP-UP FACILITY AND MAKE PAYMENT)

If you wish to acquire additional Elixir shares without incurring brokerage or handling costs, the Top-up Facility enables you to either purchase $500, $1,000 or $2,000 worth of additional shares (please see the Application Form attached).

Payment must be made by no later than 5pm (AEDT) on Tuesday, 14 February 2011 in either of the following two ways:

• Paying the relevant amount directly via BPAY® on the internet or by telephone; or

• Completing and returning sections ‘D’ and ‘E’ slip which are part of the enclosed Top-up Facility Application Form, together with your cheque, bank draft or money order drawn on an Australian Bank for the relevant amount in Australian dollars.

After receiving your completed Top-up Facility Application Form and associated payment, your payment will be pooled with money paid by other Elixir shareholders to purchase shares under the Top-up Facility and will be used to purchase Elixir Shares on ASX. Elixir Shares may be purchased by a single trade or multiple trades at a single price or at multiple prices and on a single day or multiple days after the Closing Date.

Elixir will bear all brokerage and handling fees related to purchases under this facility. The price that will be paid by shareholders for each share purchased through the Top-up Facility will be the average price paid for all shares purchased on ASX under the Top-up Facility, rounded down to the nearest whole number (even if the individual prices paid for particular purchases is more of less than this average price). The market price of Elixir shares is subject to change from time to time, accordingly, the number of shares purchased for you will depend on a number of factors.

The applicable number of Elixir shares to which you are entitled will be allocated to your holding as soon as practicable after the shares are acquired, and in any event, by no later than Friday, 2 March 2012.

Please note, you cannot participate in both the Top-up Facility and the Sale Facility.

Option 3 - Retain your holding (COMPLETE AND RETURN SECTIONS ‘C’ and ‘E’)

If you wish to retain your existing Unmarketable Parcel of Elixir shares you must complete the Share Retention Form with Section B marked with a cross, your contact details in case we need to speak with you and sign and date the form. Return the signed Share Retention Form so that it is received by Computershare by 5pm (AEDT) on Tuesday, 14 February 2012.

Important Notice

Elixir does not make any recommendation or provide any advice regarding whether to retain your shares, to acquire additional shares under the Top-up Facility or to permit them to be sold under the Unmarketable Parcel Sale Facility. You should consider seeking independent financial and taxation advice before making a decision as to whether or not to participate in this program.

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You can obtain up-to-date information on the market price of Elixir shares by visiting the ASX website (www.asx.com.au) or by contacting your financial advisor.

If you have any questions regarding how the Unmarketable Parcel Sale Facility or the Top-up Facility works please contact Computershare on 1300 731 056 (within Australia) or +61 3 9415 5361 (outside Australia).

Yours sincerely

ELIXIR PETROLEUM LIMITED

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Andrew Ross Managing Director

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29 December 2011

OUTSIDE AUSTRALIA & NEW ZEALAND

Dear Shareholder,

Unmarketable Parcel Program

Elixir Petroleum Limited ( Elixir ) is pleased to provide you with an opportunity to sell your shareholding without incurring brokerage or handling costs. This program is open to all Shareholders who at 7pm (AEDT) on Thursday, 22 December 2011 ( Record Date ) held fully-paid ordinary shares in Elixir with a value of less than $500 ( Unmarketable Parcel ).

Our records show that at the Record Date you held an Unmarketable Parcel of Elixir shares and hence you are eligible to participate in this program. This program closes at 5pm (AEDT) on Tuesday, 14 February 2012 ( Closing Date ).

The Program is being conducted to enable Elixir to reduce the significant administrative cost of managing small shareholdings. It will enable investors with unmarketable holdings, who may find it difficult or expensive to dispose of those shares through normal means, to dispose of their holdings in a cost effective manner.

Information in this letter and in the enclosed documents will assist you in making one of two choices:

Option 1 - Sell your holding (In which case, do nothing ) Option 2 - Retain your holding (Complete Sections ‘C’, ‘D’ and ‘E’ of the enclosed form)

You can only choose one option. You may elect to participate in the Unmarketable Parcel Sale Facility (Option 1) or you may choose Option 2 (retain your Unmarketable Parcel if you return the Share Retention Form before the Closing Date).

Option 1 - Sell your holding (DO NOTHING)

If you do nothing, your Elixir shares will be pooled with other Elixir shares that are to be sold under the Facility and will be sold on the Australian Stock Exchange ( ASX ) as soon as practicable after the Closing Date. The gross proceeds from sale will be remitted to you by cheque denominated in Australian Dollars as soon as practicable, and in any event will be posted by no later than Friday, 2 March 2012.

If your shares are in a CHESS holding and are to be sold under the Unmarketable Parcel Sale Facility, you should note that Elixir may without further notice sell the relevant shares, or initiate a holding adjustment to move those shares to an issuer sponsored holding for the purposes of the sale.

Elixir will bear all brokerage and handling fees related to the sale of shares under this facility. The price that will be paid to shareholders for each share sold through the Unmarketable Parcel Sale Facility will be the average price received for the sale of all shares sold on the ASX under the Unmarketable Parcel Sale Facility and hence, may be more or less than the actual price that is received for your particular parcel of shares. This average price will be determined by dividing the total proceeds from the sale of all shares sold under this Program for all participating holders by the total number of shares sold under this

Level 20, 77 St George’s Terrace Perth, Western Australia 6000 Tel: +61 8 9440 2650 | Fax: +61 8 9440 2699 Website: www.elixirpetroleum.com | ABN 51 108 230 995

Program. Sales will be conducted after the Application Period, namely, on market from 14 February to 24 February 2012.

Option 2 - Retain your holding (COMPLETE AND RETURN SECTIONS ‘C’, ‘D’ and ‘E’)

If you wish to retain your existing Unmarketable Parcel of Elixir shares you must complete the Share Retention Form with Section B marked with a cross, your contact details in case we need to speak with you and sign and date the form. Return the signed Share Retention Form so that it is received by Computershare by 5pm (AEDT) on Tuesday, 14 February 2012.

Important Notice

Elixir does not make any recommendation or provide any advice regarding whether to retain your shares or to permit them to be sold under the Unmarketable Parcel Sale Facility. You should consider seeking independent financial and taxation advice before making a decision as to whether or not to participate in this program.

You can obtain up-to-date information on the market price of Elixir shares by visiting the ASX website (www.asx.com.au) or by contacting your financial advisor.

If you have any questions regarding how the Unmarketable Parcel Sale Facility works please contact Computershare on 1300 731 056 (within Australia) or +61 3 9415 5361 (outside Australia).

Yours sincerely

ELIXIR PETROLEUM LIMITED

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Andrew Ross Managing Director

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Elixir Petroleum Limited ABN 51 108 230 995

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All correspondence to: Computershare Investor Services Pty Limited GPO Box 7043 Sydney New South Wales 2001 Enquiries (within Australia) 1300 730

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Securityholder Reference Number (SRN)

I1234567890

I 1234567890 I N D

Use a black pen. Print in CAPITAL letters A B C 1 2 3 inside the grey areas.

Where a choice is required, mark the box with an ‘X’ X

 For your security keep your SRN/HIN confi dential.

Unmarketable Parcel Sale Facility and Top-Up Facility

IMPORTANT:

Please read the shareholder letter that accompanies this Form which sets out your choices with respect to the Unmarketable Parcel Sale Facility and the Top-Up Facility and the enclosed Terms and Conditions relating to the Top-Up Facility.

If you wish to retain your shareholding in Elixir Petroleum Limited (“EXR”), it will be necessary for you to complete Part C and E of this Form and return it to Computershare Investor Services Pty Limited (Computershare) so that it is received by no later than 5.00pm (AEDT) on 14 February 2012. [This Form can be returned using the enclosed envelope or to one of the addresses on the reverse of this Form.]

If this Form is not received by Computershare by 5.00pm (AEDT) on 14 February 2012, your shares will be sold. If your shares are in a CHESS holding, Elixir Petroleum Limited may, without further notice, initiate a holding adjustment to move those shares from that CHESS holding to an issuer sponsored holding for the purposes of the sale.

If you wish to sell your shares under the Unmarketable Parcel Sale Facility, you do not need to complete or return this Form.

If you wish to purchase more shares under the Top-Up Facility it will be necessary for you to complete Parts D and E of this Form and return it to Computershare by no later than 5.00pm (AEDT) on 14 February 2012.

B Number of EXR Shares that you held as at 7.00pm (AEDT) on Thursday 22 December 2011 (Eligible Participation Date):

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Notice of Retention of Small Shareholding - Complete Parts C & E if you wish to retain your shareholding in EXR.

C Retention of Shares

I/We the shareholder(s) described above hereby give notice that I/we wish to retain my/our shareholding in Elixir Petroleum Limited.

Buy Instruction - Complete Parts D & E if you wish to buy more shares in Elixir Petroleum

D Instruction to buy Additional EXR Shares Mark [X] in the box left to agree to purchase shares in EXR up to the amount of A$2000.00 Biller Code: 123456 A$500.00 OR A$1000.00 OR A$2000.00 Ref No: Biller Code: Record Cheque Details Below Drawer Cheque Number BSB Number Account Number Amount of cheque A$

E Sign Here - This section must be signed for your instructions to be executed. By signing this form and attaching a cheque or making a Bpay, I/we Form, and authorise Computershare and the Broker to do all things and execute - give notice that I/we wish to retain my/our shares: all documents to purchase such Shares; and

• agree to purchase Shares up to the amount of A$2000.00; - give the warranties and acknowledgments set in the Terms and Conditions

• • appoint the Broker to act on my/our behalf as execution only broker to enclosed with this Form. Signature instructions overleaf

• purchase such Shares on the Terms and Conditions enclosed with this

• Individual or Securityholder 1 Securityholder 2 Securityholder 3 Director Director/Company Secretary Sole Director and Sole Company Secretary

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E X R

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F Contact Details Please provide your telephone number and a contact name in case we need to contact you about this Form. Area Code Daytime Phone Number Contact Name

How to complete this form

A Registration

The EXR will be registed in the name(s) printed on the form.

E Signing Requirements

You must sign this form as follows in the space provided.

B EXR Shares Held

Your securityholding as at the 5.00pm (AEDT) on Thursday 22 December 2011.

C Retention of Shares

Place an “X” in the box provided if you wish to retain your securityholding in Elixir Petrleum Limited.

Payment

D

Make your cheque or bank draft payable to Elixir Petroleum Ltd Top-up - Facility Account in Australian currency and cross it Not Negotiable. Your cheque or bank draft must be drawn on an Australian Bank.

Complete the cheque details in the boxes provided. The total amount must agree with the amount shown in box C.

Cheques will be processed on the day of receipt and as such, sufficient cleared funds must be held in your account as cheques returned unpaid may not be re-presented and may result in your Acceptance being rejected. Pin (do not staple) your cheque(s) to the Entitlement and Acceptance Form where indicated. Cash will not be accepted. Receipt for payment will not be forwarded.

Individual: where the holding is in one name, the securityholder must sign.

Joint Holding: where the holding is in more than one name, all of the securityholders must sign.

Power of Attorney: to sign under Power of Attorney, you must have already lodged this document with the registry. If you have not previously lodged this document for notation, please attach an originally certified copy of the Power of Attorney to this form when you return it. Companies: this form must be signed by a Director, a Company Secretary or Sole Director and Company Secretary. Please indicate the office held by signing in the appopriate space or affix the Company Seal.

Deceased Estates: all Executor(s)/Administrator(s) must sign.

F Contact Details

Enter your contact details. These are not compulsory but will assist us if we need to contact you.

Lodgement Instructions

This Form must be completed and received by Computershare Sydney at one of the addresses set out below by no later than 5.00pm (AEDT) on 14 February 2012, subject to the closing time being extended or shortened in accordance with the Terms and Conditions. It is your responsibility to allow sufficient time to meet the closing date. A reply paid envelope is enclosed.

Your Form must be sent to:

Computershare Investor Services Pty Limited GPO Box 7043 Sydney NSW 2001

Neither CIS nor the Company accepts any responsibility if you lodge the Form at any other address or by any other means.

If you are applying for shares and your payment is being made by BPAY, you do not need to return the slip below. Your payment must be received by no later than 5.00pm (AEDT) on Thursday, 14 February 2012. Applicants should be aware that their own financial institution may implement earlier cut off times with regards to electronic payment, and should therefore take this into consideration when making payment. Ensure you have read and accurately followed your banking institution’s BPAY FAQ or other instructions prior to making multiple payments for multiple holdings under this offer. Neither the Share Registry nor Elixir Petroleum Limited accepts any responsibility for loss incurred through incorrectly completed BPAY payments. It is the responsibility of the applicant to ensure that funds submitted through BPAY are received by this time.

Payment Options:

Telephone & Internet Banking – BPAY

Biller Code: 123456 Call your bank, credit union or building society to make this payment from your Ref No: Biller Code: cheque or savings account. More info: www.bpay.com.au Privacy Statement

Personal information is collected on this form by Computershare Investor Services Pty Limited (“CIS”), as registrar for securities issuers (“the issuer”), for the purpose of| maintaining registers of securityholders, facilitating distribution payments and other corporate actions and communications. Your personal information may be disclosed to our related bodies corporate, to external service companies such as print or mail service providers, or as otherwise required or permitted by law. If you would like details of your personal information held by CIS, or you would like to correct information that is inaccurate, incorrect or out of date, please contact CIS. In accordance with the Corporations Act 2001, you may be sent material (including marketing material) approved by the issuer in addition to general corporate communications. You may elect not to receive marketing material by contacting CIS. You can contact CIS using the details provided on the front of this form or e-mail privacy@computershare.com.au

If you have any enquiries concerning your Securityholding, please contact Computershare Investor Services Pty Limited on 1300 850 505.

Elixir Petroleum Limited ABN 51 108 230 995

All correspondence to: Computershare Investor Services Pty Limited GPO Box 7043 Sydney New South Wales 2001 Enquiries (within Australia) 1300 730 318 (outside Australia) 61 3 9415 4000

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000001 000 SAM MR JOHN SMITH 1 FLAT 123 123 SAMPLE STREET THE SAMPLE HILL SAMPLE ESTATE SAMPLEVILLE VIC 3030

Securityholder Reference Number (SRN)

I 1234567890 I N D

Use a black pen. Print in CAPITAL letters A B C 1 2 3 inside the grey areas.

Where a choice is required, mark the box with an ‘X’ X

For your security keep your SRN/HIN confidential.

Share Retention Form

IMPORTANT:

This is an important document and requires your immediate attention. If you wish to retain your ordinary shares (“Shares”) in the Company, you must complete this form and return it so that it is received by no later than 5.00pm (AEDT) on 14 February 2012. You should also refer to the detailed terms and conditions and other documents that accompanied this form. If you are in any doubt as to how to deal with this form, please consult a professional advisor.

B Number of Shares as at Record Date

The number of Shares that you held at 7:00pm (AEDT) 22 December 2011 (“Record Date”).

xxxxxxxxx

C Retention of Shares

I/we refer to the notice from the Company dated 29 December 2011 and record my/our wish to retain my/our Shares.

D Contact details Please provide your contact details in case we need to speak to you about this form. Name of contact person Contact person’s daytime telephone number ( )

E Sign here - this section must be signed before we can process this form.

By signing and returning this form, I/we confirm that I/we understand that my/our Shares will not be sold under the Small Holding Sale Facility. Individual or Securityholder 1 Securityholder 2 Securityholder 3 Sole Director and Sole Company Secretary Director Director/Company Secretary Day Month Year

TO BE A VALID INSTRUCTION, THIS FORM MUST BE RECEIVED BY NO LATER THAN 5.00pm (AEDT) ON 14 FEBRUARY 2012

See back of form for important completion guidelines

S R F

EXR

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How to complete this form

Securityholders who wish to retain their shares must lodge a Share Retention form.

A Registration Name(s) D Contact details Your name and address as it appears on the register of Elixir Petroleum Limited. Enter the name of a contact person and telephone number. These details will only be used in the event that the registry has a query regarding this form. B Number of Shares as at Record Date This is the total number of Shares you held at 7.00pm, 22 December 2011. E Signature(s) You must sign and date the form as follows in the space provided: C Retention of Shares Joint holding: where the holding is in more than one name all of the If you would like to retain your shares, please mark the box on the front of securityholders must sign. the form and return it in accordance with the lodgement instructions below. Companies: where the company has a Sole Director who is also If this form is not received by that time, and you have not otherwise validly the Sole Company Secretary, this form must be notified the Company that you wish to retain your Shares by that time, the signed by that person. If the company (pursuant to Company will be entitled to have your Shares sold for you. section 204A of the Corporations Act 2001) does If you wish to sell your Shares under the Unmarketable Parcel, not have a Company Secretary, a Sole Director can you should not complete this form. also sign alone. Otherwise this form must be signed by a Director jointly with either another Director or a Company Secretary. Please sign in the appropriate place to indicate the office held.

Consolidation of shareholdings

If you have more than one holding on Elixir Petroleum Limited’s register and you do not sell your Shares under the Unmarketable Parcel Sale Facility, you should consider consolidating them. For further advice in this regard, please contact Computershare Investor Services Pty Limited (‘CIS’) on 1300 730 318 (within Australia) or 61 3 9415 4000 (outside Australia).

Lodgement of Form

If you wish to retain your Shares, this Share Retention Form must be completed and received by CIS Sydney by no later than 5.00pm (AEDT) on 14 February 2012.

It is your responsibility to allow sufficient time for this form to be received by CIS. Your Share Retention Form must be sent to:

Computershare Investor Services Pty Limited GPO Box 7043 Sydney NSW 2001

Neither CIS nor the Company accepts any responsibility if you lodge the Share Retention Form at any other address or by any other means.

Privacy Statement

Personal information is collected on this form by CIS, as registrar for the Company, for the purpose of effecting your instructions in relation to the Unmarketable Parcel Sale Facility, maintaining registers of securityholders, facilitating distribution payments and other corporate actions and communications. Your personal information may be disclosed to our related bodies corporate, to the Company and its professional advisers, to external service companies such as print or mail service providers, or as otherwise required or permitted by law. If you would like details of your personal information held by CIS, or you would like to correct information that is inaccurate, incorrect or out of date, please contact CIS. In accordance with the Corporations Act 2001, you may be sent material (including marketing material) approved by the Company in addition to general corporate communications. You may elect not to receive marketing material by contacting CIS. You can contact CIS using the details provided on the front of this form or e-mail privacy@computershare.com.au

If you have any enquiries concerning your Securityholding please contact CIS on telephone 1300 730 318 (within Australia) or +61 3 9415 4000 (outside Australia).

This form may not be used to notify your change of address. For information please contact CIS on 1300 730 318 (within Australia) or +61 3 9415 4000 (outside Australia) or visit the share registry at www.computershare.com

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