EMERALD RESOURCES NL — Capital/Financing Update 2010

Nov 3, 2010

==> picture [191 x 58] intentionally omitted <==

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

4 November, 2010

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

Initial Appalachian Gas Production from Beetree Project in Kentucky

Highlights:

 Sales gas flow has commenced as part of commissioning operations on the recently completed Beetree Gas Project in Kentucky

Emerald Oil & Gas NL (Emerald) is pleased to announce that sales gas production has commenced from its Beetree Project Magoffin County, Kentucky. The project is owned and operated by Kentucky Energy Partners LLC (KEP), which is 75% owned by Emerald.

Gas flow from a single well is currently being constrained to 150 Mcfd during the commissioning phase to achieve steady state production system operations prior to ramping up sales gas production. Additional wells will be connected in the coming weeks to bring production rates up to between 500 Mcfd and 1000 Mcfd.

The Beetree Project consists of a new 10km gathering line and a new sales gas pipeline tap to provide gas market access for a number of stranded sweet gas wells. Additional existing gas wells in the area have also been identified and will be selectively connected to the production system to increase production.

KEP is a company Emerald formed in November, 2009 with Slone Production LLC (Slone), a local gas field operator and engineering consultant. Emerald holds a 75% interest, with Slone owning the remaining 25% in KEP. To date KEP has secured approximately 2,000 acres of leases, containing 14 potentially productive existing gas wells in Magoffin County, Kentucky. KEP is progressing several gas projects concurrently to build Appalachian gas production as part of Emerald's objective to achieve a sustainable operating cash surplus.

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.