EMERALD RESOURCES NL — Capital/Financing Update 2011

Jul 18, 2011

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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

19 July, 2011

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

Emerald and Entek Commence 2011 Green River Basin Niobrara Shale Oil Appraisal Program

Highlights:

• Drilling operations commenced on Battle Mountain 14-10L, the first of 3 wells in Green River Basin Niobrara shale oil appraisal program.

• Main objectives of the appraisal well program are to assess Niobrara production potential, identify most prospective reservoir intervals and provide critical information for frac stimulation design for vertical and/or horizontal and development wells in 2012.

Emerald is pleased to announce the commencement of its 2011 Green River Basin JV work program. Entek Energy Ltd (ETE) is Operator and holds 55% interest, with Emerald (EMR) holding the other 45%.

DHS Rig-18 has commenced drilling the first well of a 3 well Niobrara shale oil appraisal drilling program. The first well, Battle Mountain 14-10L, was selected from 7 currently permitted well locations. Subsequent wells in the program will be located based on initial drilling results, local operating season constraints and field operational considerations.

As a result of continued leasing activity and ongoing lease maintenance, the two companies now control close to 80,000 gross acres, approximately 60,000 net acres covering the Niobrara Shale Oil Play.

The wells in the 2011 appraisal program will be drilled vertically to intersect multiple reservoirs in the Niobrara Shale Oil section which can be up to 1,100 ft thick in the area. The wells will penetrate the brittle bench reservoirs within the Niobrara section as well as significant natural fracturing seen in previous wells within the Green River Basin and in particular in and around the Company’s acreage holding. The fractured igneous intrusives unique in this area are also being targeted. The Company’s Focus Ranch 12-1 which was tested at cumulative rate of 240 BOPD and 2.75 MMcfd gas has already provided indications of the production potential from igneous intrusives in the area.

The primary objectives of the 2011 vertical well appraisal program are to:

1. assess reservoir performance of individual reservoir intervals and establish production from the Niobrara Shale Oil section,

2. identify the most prospective Niobrara intervals to target with both vertical and horizontal wells in 2012 as part of the continued appraisal and development program,

3. gather technical information necessary to design and execute effective fracture stimulation treatments for the different reservoir rock types.

As multiple reservoir sections are expected to be intersected, individual reservoir sections will be selected and separately fracced and then flow tested to determine optimal stimulation treatments, with several frac treatments possible in each well. The operating team in Denver is working closely with Halliburton to design fracture stimulation treatments for at least one interval in each well this year with scheduled slots from August. Initial flow test results are not expected to be available for several weeks, but regular operational updates on the drilling program will be provided as appropriate.

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, EMRO), listed on the ASX in June 2006, is an oil and gas exploration and production company with project interests in Colorado, Wyoming, Kentucky and Texas in the USA and in the Canning Basin of Western Australia.

Statements regarding Emerald’s plans for 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.