EMERALD RESOURCES NL — Capital/Financing Update 2010

Apr 29, 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

30 April, 2010

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

EMERALD TO INCREASE INTEREST IN NW ALICE FIELD

• Emerald interest to increase from 14% to 35% in 4500 acre lease area over NW Alice structure

• 3P Reserve estimates approximately 95 Bcf gas and 2.4 MMbbl condensate in NW Alice AMI;

• Well planned in Q3 2010 to follow up to 2007 discovery well.

The Directors of Emerald Oil & Gas NL (“ Emerald ” or “the Company ”) are pleased to advise that Noble Energy Inc (“ Noble ”) has accepted an offer from Oso Exploration (“ Oso ”) and Emerald to purchase all of Noble's interests in the NW Alice project area for $US1,000,000 cash. Emerald will increase its working interest in the NW Alice field in Jim Wells County, Texas from 14% to 35% as a result of this transaction.

Under the terms of the deal, Emerald and Oso Exploration will acquire all of Noble’s working interests in approximately 4500 acres of oil and gas leases in and contiguous to the Area of Mutual Interest (“ AMI ”) of the existing NW Alice Joint Venture and licence to an additional 15 square miles (9600 acres) of 3D seismic data contiguous to the 12 square miles (7600 acres) of 3D data already held over the AMI area.

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

Oso and Emerald plan to drill a well as soon as practical on one of three drilling locations already identified by Noble from the 3D survey. The well will target the same gas bearing Yegua sands intersected in the RJ Hunter #1 gas/condensate discovery drilled in 2007, with drilling operations expected to begin in July 2010.

The RJ Hunter #1 discovery well drilled in 2007 highlighted the substantial potential of the field with discovery of an estimated 95 Bcf gas and 2.4 MMbbl condensate of P3 reserves in the AMI area. Emerald sees this as a significant step forward in delivering the Company’s business plans.

NW Alice Field

The NW Alice field is an undeveloped gas field in Jim Wells County, Texas, consisting of a large anticlinal structure believed to contain approximately 95 Bcf P3 gas reserves and 2.4 MMbbl P3 condensate reserves in the NW Alice Joint Venture AMI. It was discovered by the RJ Hunter #1 well in March 2007 (Emerald 10% WI at that time), which was drilled to a total depth of 8500 feet. The well intersected a total of 50 feet of

net pay containing gas/condensate in two main gas bearing zones and smaller intervals in Upper and Lower Yegua sands. Unfortunately, the wellbore casing collapsed on perforating the Lower Yegua, so no flow test was possible and the flow test from the upper Yegua was not definitive. The well was then suspended.

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Based on the results of the RJ Hunter well, in 2008 Noble Energy acquired, processed and interpreted a 51 square mile 3D seismic survey along trend, which included the NW Alice Joint Venture's AMI. Three potential drilling locations were identified in the AMI on the basis of the 3D seismic during the year and Noble subsequently acquired a number of additional leases both inside and outside the AMI to consolidate the position of the joint venture.

Current plans are to interpret the newly acquired 3D data, select optimal drilling locations and commence drilling as soon as practical. On that basis, drilling activities are expected to commence around July 2010.

In 2009, Emerald acquired leases with oil and gas rights over 178 acres containing and surrounding the RJ Hunter#1 discovery well. Emerald now holds these leases at 100% Working Interest. The Company is considering options to re-drill the RJ Hunter gas discovery well and acquire up to an additional 1000 acres of contiguous lease acreage, either as part of a new NW Alice joint venture with Oso or separately at 100% WI.

The acquisition of Noble's interest, Emerald's plans to acquire additional acreage at 100% working interest and the planned drilling in this announcement were anticipated in Emerald's Business Plan presentation, which was released to the ASX Friday, March 26, 2010.

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 : 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.