EMERALD RESOURCES NL — Capital/Financing Update 2010

Nov 24, 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

25 November, 2010

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

Drilling Update - Lake Alice Gas Unit #1 Well NW Alice Project, Texas

Highlights:

• Significant gas shows indicated from mud logs in two sands, wireline logging operations currently underway

• Well drilled trouble free and with no safety or environmental incidents to its intermediate casing point at 6550 feet

• Next operation to run intermediate casing before drilling to main target - Yegua sand gas/condensate target

At 0600 on 25 November 2010, the ‘Lake Alice Gas Unit #1’ well currently drilling in Jim Wells county, Texas had reached its intermediate casing point at a depth of 6550 feet KB. The operator reports trouble-free operations to date, with no safety or environmental issues.

Significant gas shows were indicated near the bottom of the intermediate section of hole, which required drilling operations to be suspended for several hours to circulate gas out of the well before drilling ahead. Wireline logging operations are currently underway. Following the logging, intermediate casing will be run prior to drilling out to a planned total depth (TD) of 8300 ft. The primary targets are gas/condensate bearing Yegua sands. On a trouble-free basis it is expected that TD will be reached during the first week of December.

The Lake Alice Gas Unit #1 well is targeting the same gas bearing Yegua sands intersected in the RJ Hunter #1 gas/condensate discovery well drilled in 2007. Both sands are expected to contain gas with a condensate/gas ratio of 20 to 40 bbl/MMscf.

Emerald holds a 35% Working Interest in the well, with the remaining 65% held by Oso Exploration Co (Operator). Emerald also holds approximately 3700 acres of oil and gas leases and has access to 27 square miles of high quality 3D seismic data over the gas bearing NW Alice structure near the town of Alice in Jim Wells County, Texas. This provides ample lease acreage for follow-up drilling, with several drilling locations already identified from 3D seismic.

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NW Alice project area, current lease holdings and 3D survey area.

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.