EMERALD RESOURCES NL — Capital/Financing Update 2010

Dec 5, 2010

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Suite 2, 12 Parliament Place West Perth WA 6005 Ph: +618 9482 0510 Fax: +618 9482 0505 Email: info@emeraldoilandgas.com www.emeraldoilandgas.com

6 December, 2010

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

Drilling Update - Lake Alice Gas Unit #2 Well NW Alice Project, Texas

Highlights:

 Sidewall cores indicate Yegua sands to be tight

 Planning underway to complete and test shallow gas sands

The ‘Lake Alice Gas Unit #1’ well in Jim Wells county, Texas reached its total depth of 8300 feet with trouble-free operations, and no safety or environmental incidents.

Both Yegua sands targeted as the primary objective were present as predicted and gas shows were indicated on mud logs over the whole Yegua interval. Sidewall cores indicated acceptable porosity, however permeability measurements on the core samples indicated rock permeabilities too low to provide sufficient gas flow rates for commercial production. A decision was therefore taken not to run casing and to not to attempt to complete the Yegua sands.

The well will now be plugged back to below the intermediate casing and planning is underway to complete and test the Hockley sands in the intermediate hole section. The Hockley sands exhibited significant gas shows as indicated in our previous announcement on 25 November, 2010.

Results from the Hockley sand tests are expected to be available over the next few weeks.

For more information please contact:

Emerald Oil & Gas NL Tel: +618 9482 0510

MIKE KRZUS Managing Director mkrzus@emeraldoilandgas.com

About Emerald Oil & Gas NL

Emerald Oil & Gas NL (ASX: EMR), listed on the ASX in June 2006, is an oil and gas exploration and production company with project interests in Kentucky 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 near term objective is to achieve production and cashflow to achieve an operating cash surplus from current assets, while seeking high impact opportunities in the energy sector.

Statements regarding Emerald’s plans with respect to its petroleum properties are forward-looking 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.

Information in this announcement pertaining to the presence of gas in the Lake Alice Gas Unit #1 well was compiled by Mike Krzus, Emerald Oil & Gas NL’s Managing Director who holds a BSc in Petroleum Engineering and is a Member of the Society of Petroleum Engineers.