EMERALD RESOURCES NL — Capital/Financing Update 2010

Jun 16, 2010

==> picture [179 x 54] 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

17 June, 2010

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

EMERALD TO DRILL IN NW ALICE FIELD

• Emerald acquires a 35% Working Interest in 4500 lease acres and a total of 27 square miles of 3D seismic data over NW Alice Project

• Large gas bearing structure with possible reserves likely to exceed 100Bcf gas and 2.5 million barrels oil

• Initial discovery RJ Hunter#1 well drilled in 2007

• Planning underway to drill follow up well in August 2010

The Directors of Emerald Oil & Gas NL (“ Emerald ” or “the Company ”) are pleased to advise that that the previously announced transaction with Noble Energy Inc for Oso Exploration (“ Oso ”) and Emerald to purchase all of Noble's interests in the NW Alice project area has closed.

Emerald now holds a 35% Working Interest in 4500 acres of oil and gas leases and a total of 27 square miles of high quality 3D seismic data over the gas bearing anticline structure near the town of Alice in Jim Wells County, Texas.

Emerald paid $US350,000 for its additional interests and its share of the 3D seismic data at completion of the acquisition.

==> picture [388 x 222] intentionally omitted <==

Figure 1: Project location in Duval and Jim Wells Counties, South Texas

Oso and Emerald have now commenced planning to drill a well on one of several drilling locations identified from the 3D survey. The well will target the same gas bearing Yegua sands intersected in the RJ Hunter #1 gas/condensate discovery well drilled in 2007, with drilling operations expected to begin in August 2010.

Regional Geology:

The RJ Hunter Gas discovery is the northern extension of a NE-SW Yegua gas trend, with several significant Yegua Gas Fields such as Ben Bolt, Braman, Starr Brite, Los Rubios and Four Sevens. These fields, in Jim Wells and Duval counties, have produced gas and condensate from several Yegua sands, but the two primary producing reservoirs are known locally as the Y-15 (Middle Yegua) and the Y-21 (Lower Yegua) sands. These sands are areally extensive, low-energy, shelf deposits having an average thickness of fifteen feet.

Shallow gas plays are also present in the Frio, Vicksburg and Stillwell sands over this area.

==> picture [319 x 431] intentionally omitted <==

Figure 2: 3D Survey location showing proximity to other producing fields in Yegua Trend

In 2007, Emerald farmed in (10% WI) to a 12mi[2] Area of Mutual Interest (AMI) containing 2500 lease acres located over an undrilled section of the anticline structure to the north of the producing Yegua fields.

NW Alice Field

The discovery well, RJ Hunter #1 was drilled in March 2007 to a total depth of 8500 feet. The well intersected 50 feet of net pay containing gas/condensate in two main gas bearing zones and smaller intervals in the Middle and Lower Yegua sands, as well as shallower gas sands. Unfortunately, highly over-pressured Lower Yegua gas sands caused the wellbore casing to collapse on perforating the sand, so no flow test was possible. A subsequent flow test from the Middle Yegua sand was not definitive, producing gas and fresh water volumes. The well was then suspended.

Using well data from the RJ Hunter well and offset well data, P3 reserves in the 12 mi[2] Northwest Alice AMI area were estimated at approximately 100 BCF gas and 2.5 million barrels of condensate.

Based on the results from the RJ Hunter #1 well, Noble Energy (Operator), acquired, processed and interpreted 50mi[2] of 3D seismic data, which included the NW Alice AMI and the extension of the anticline structure to the North. Noble identified seven drilling locations based on the 3D seismic interpretation and acquired a number of additional leases both inside and outside the AMI area to consolidate its position around the most prospective areas.

Early in 2010 Noble took a corporate decision to focus on recent large international discoveries. Oso and Emerald then made the offer to acquire Noble’s interests and facilitate and their exit from the NW Alice area.

==> picture [267 x 385] intentionally omitted <==

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

Separately, during 2009, Emerald acquired 100% WI in the RJ Hunter #1 Discovery well and surrounding 178 acres. Plans are being considered to re-drill the well to a position higher on the structure and complete the new well as a gas/condensate producer. Plans are also underway and to acquire up to an additional 1000 acres of contiguous lease acreage, either as part of the new NW Alice joint venture with OSO or separately at 100% WI.

Emerald net Reserves attributed to the RJ Hunter well @ 100% WI are: Middle Yegua Proved Undeveloped 2.2 Bcf gas, 55,000 bbl oil Lower Yegua Possible 2.0 Bcf gas, 50,000 bbl oil

The Lower Yegua reserves are categorised as Possible reserves, due to the inability to test due to collapsed casing.

The main targets for the planned NW Alice drilling are these same Middle and Lower Yegua sands. Both sands contain similar gas with a gas to condensate ration of 20 to 30 bbl/MMscf. Both sands will be targeted in every well. Gas and condensate recoveries from these sands are expected to be similar and each successfully drilled Yegua sand on this structure could be expected to have characteristics approximately as follows:

• 2 MMcfd average initial production rate

• 2.0 Bcf gas & 50,000 Bbl condensate recovered per well

• Approximately 15 year production life

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) was listed on the ASX in June 2006. Emerald 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 current focus is on establishing a surplus operating cash flow from production and adding step change company value through appraisal and field development of existing US assets consisting of both conventional and non-conventional oil and gas. In addition Emerald is progressing exploration efforts to evaluate the commercial potential of its Canning Basin assets in Australia. The Company is also seeking to identify larger, high potential value projects in Australia, USA or Internationally, to underpin substantial company growth over the next few years.

Further information on Emerald's strategy and Business Plans can be found on the Company's website : www.emeraldoilandgas.com

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 report pertaining to reserve estimates for the NW Alice project was compiled by Allen Kelley of Ralph Davis Associates Inc. who has consented to the inclusion of that information in the form and context in which it appears.