EMERALD RESOURCES NL — Capital/Financing Update 2008

May 28, 2008

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Level 2, 16 Altona Street West Perth WA 6005 Ph: +618 9482 0500 Fx: +618 9482 0505 Email: info@emeraldoilandgas.com www.emeraldoilandgas.com

29 May 2008

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

APPALACHIAN UPDATE

Acquires 5 new wells

Emerald Oil & Gas NL (“Emerald”) is pleased to announce it has signed an agreement with P&J Resources to acquire an 80% interest in five existing wells from P&J that were drilled in 2007. The wells, located in eastern Kentucky, were all successful Big Six formation completions that are hooked up to production facilities, but have not been ‘turned on’ pending completion of gathering lines and infrastructure.

This presents a unique opportunity to kick start production at a cost of US$150,000 per well, which is significantly below current drilling costs for these wells. Emerald believes it can complete the acquisition within two weeks. Emerald’s objective is to put the wells on to production then assess whether to subsequently fracture stimulate the wells based on production data. At current gas prices of nearly US$12 per Mcf, payout of acquisition costs is anticipated to be in less than 6 months after fracture stimulation.

First West Virginia well – Myrtle Crum #4

P&J Resources has confirmed the location permit for the first well in West Virginia, the “Myrtle Crum #4” well has been approved by the West Virginia Department of Environmental Protection. P&J Resources anticipate commencing the location preparation this weekend ready for well spud next week. This well will be drilled to a depth of approximately 5,500 feet, testing several productive formations including the Big Six sandstone, offsetting existing shallow production.

With completion of the Myrtle Crum #4 well, Emerald could have seven wells in production by late June 2008.

Avanti drilling funding

Emerald recently announced an MOU with a Florida based fund Avanti Corp LLC, to provide drilling funds up to US$25 million for the Appalachian project. Emerald hopes to conclude formal documentation in the coming week.

Further updates will be released as they come to hand.

For more information please contact:

Emerald Oil & Gas NL

Tel: +618 9482 0510

JOHN HANNAFORD Executive Director – Finance jhannaford@emeraldoilandgas.com

BOB BERVEN Executive Director – Technical bberven@emeraldoilandgas.com

About the Appalachian Gas Development Project

Emerald announced on April 30, 2008 that it had entered into a Drilling and Operating Agreement to develop two 45,000 acre lease areas in eastern Kentucky and western West Virginia. Under the agreement Emerald will earn an 80% working interest in a 4000 foot radius spacing unit for each well drilled for 100% of the drilling costs of each well. Both acreage areas have significant potential for infill drilling on 40 acre spacing, as well as several productive horizons.

The Appalachian Valley is USA’s oldest oil and gas producing area. Recent discoveries in the Marcellus Shale have now focused renewed exploration activity on the region. Combined with high gas prices, extensive infrastructure, enhanced drilling and completion techniques the area now offers extensive upside potential and compelling economics.

About Emerald Oil & Gas NL

Emerald Oil & Gas NL (ASX: EMR; EMRO) was listed on the ASX in June 2006, raising $4 million. Emerald is an oil and gas exploration and production company with project interests in Kentucky, West Virginia, North Dakota and Texas in the USA and in the Canning Basin of Western Australia. Emerald’s focus is on both conventional and non-conventional reservoir targets for oil and gas prospects. Its primary objective is to achieve near term production and cashflow to build shareholder value and provide funds to fuel further growth. Emerald’s strategy is to take modest but meaningful positions in low risk exploration projects that can be swiftly brought into production.

Information in this announcement pertaining to exploration potential was compiled by Robert Berven, Emerald Oil & Gas NL’s Technical Director who is a Member of the Australasian Institute of Mining and Metallurgy and the American Association of Petroleum Geologists CPG # 2498.

Statements regarding Emerald’s plans with respect to its petroleum properties are forwardlooking statements. There can be no assurance that Emerald’s plans for development of its petroleum properties will proceed as currently expected. There can be no assurance that Emerald will be able to confirm the presence of additional petroleum deposits, that any discovery will prove to be economic or that an oil or gas field will successfully be developed on any of Emerald’s petroleum properties.