EMERALD RESOURCES NL — Capital/Financing Update 2007

Jul 1, 2007

Level 2, 16 Altona Street West Perth WA 6005
Ph: 08 9482 0500 Fx: 08 9482 0505 Email: info@emeraldoilandgas.com www.emeraldoilandgas.com

2 July 2007

Centralised Company Announcements Platform Australian Stock Exchange 10^th floor, 20 Bond Street Sydney NSW 2000

ALLOTMENT OF SECURITIES - PRIVATE PLACEMENT

With reference to the private placement announced on 21 May 2007, and the Appendix 3B lodged on 30 May 2007 Emerald Oil & Gas NL hereby advises that the second tranche of securities under the placement being 12,750,000 shares and 6,375,000 options exercisable at 20 cents on or before 31 May 2008, were issued and allotted today.

Yours faithfully,

аA

John Hannaford Company Secretary

$+$ See chapter 19 for defined terms.