EMERALD RESOURCES NL — Capital/Financing Update 2011

Jul 18, 2011

==> picture [568 x 91] intentionally omitted <==

----- Start of picture text ----- 15 Rheola StreetWEST PERTH WA 6005Telephone: +61 8 9213 4388Facsimile: +61 8 9213 4399ASX Code: ETE----- End of picture text -----

ASX RELEASE 19 July 2011

ENTEK COMMENCES 2011 NIOBRARA SHALE OIL PROJECT APPRAISAL PROGRAM IN THE GREEN RIVER BASIN

Entek is pleased to announce the commencement of its Green River Basin work program for 2011.

DHS Rig-18 has spudded the Battle Mountain 14-10L well, which is the first of a minimum 3 well Niobrara Shale Oil appraisal drilling program in 2011. Battle Mountain 14-10L was selected from 7 currently permitted well locations based on close proximity to the Battle Mountain 14-15 well which flowed oil last year against all odds from a severely damage well bore (drilled by the previous operator). Subsequent wells in the program will be located based on drilling results, local operating season constraints and field operational considerations.

Entek holds a 55% interest in the Green River Basin Joint Venture (GRBJV) with Emerald Oil & Gas NL (ASX:EMR) holding 45%. Entek is the Operator of the GRBJV. As a result of continued leasing activity and ongoing lease maintenance the GRBJV now controls close to 80,000 gross acres, approximately 60,000 net acres, covering the Niobrara Shale Oil Play.

==> picture [480 x 334] intentionally omitted <==

Page 2 of 3

The wells planned in the 2011 appraisal program will be drilled vertically to intersect the oilprone Niobrara Shale which can be up to 1,100 ft thick in the area. The wells are expected to penetrate the brittle naturally fractured bench intervals within the Niobrara section that have been proven as porous and permeable reservoirs in offset wells. As an example the Sierra Madre 12-20 well owned by Anadarko which is approximately 8 miles from the 14-10 well, had initial production of around 550 BOPD, has recovered in excess of 355,000 BO and is still on production.

In addition, the fractured igneous intrusive reservoirs that are present in this area will be further evaluated. The Company’s Focus Ranch 12-1 well (which was tested in 2009 at a cumulative rate of 240 BOPD and 2.75 MMCFD) has already indicated the potential of the igneous intrusive reservoirs in the area.

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

• establish deliverability and commercial production of the oil prone Niobrara Shale;

• identify the most prospective Niobrara intervals;

• gather technical information necessary to design and execute effective fracture stimulation treatments; and

• select which intervals to target with both vertical and horizontal wells in 2012 as part of the continued appraisal and development program.

The Company is working closely with Halliburton to design fracture stimulation treatments for at least one interval in each well this year with scheduled slots available from August. Initial flow test results from these wells are not expected to be available immediately after reaching total depth and logging. Rather, weekly announcements will be made each Thursday morning where drilling progress, fracture stimulation, testing and completion operations for each well will be updated as these operations will be occurring concurrently across all wells in the work program.

Interested parties are directed to review the Investor Presentation (to be presented to institutional investors from July) that was released to the ASX on 14 July, 2011 for further information on the Niobrara Shale Oil Project in the Green River Basin as well as the Company’s update on its recent successful oil discovery in the Gulf of Mexico.

CEO and Managing Director Trent Spry commented:

“It is exciting to have commenced our 2011 Green River Basin appraisal program. I am certain that our appraisal efforts in 2011 will provide the Company with the information and confidence it needs to accelerate appraisal and development in 2012. We are seeing increased industry activity across leasing, well permitting (both vertical and horizontal), and acreage acquisitions and transactions in the area as the attention shifts from the DJ Basin to the Green River Basin this year. Industry activity and success will provide valuable information on the Niobrara in the GRB and is expected to have a significant impact on acreage value. I look forward to providing further updates from now until the end of the year on what is an exciting time for the Company”

Page 3 of 3

All enquiries should be directed to:

TRENT B SPRY

CHIEF EXECUTIVE OFFICER & MANAGING DIRECTOR

ENQUIRIES: +618 9213 4388 INFO@ENTEKENERGY.COM.AU INFORMATION: WWW.ENTEKENERGY.COM.AU

Competent Persons Statements:

Information in this report that relates to Hydrocarbon Reserves / Resources is based on information compiled by Mr Trent Spry, Chief Executive Officer & Managing Director of Entek Energy Limited who has consented to the inclusion of that information in the form and context in which it appears. Mr Spry has over 20 years experience in geoscience in the petroleum industry, both in Australia and internationally. His qualifications are: University of South Australia, Bachelor of Science, Double Major Geology & Biochemistry, National Centre of Petroleum Geology & Geophysics (NCPGG), First Class Honours, 1993.

About The Company:

Entek is focused on a strategy of acquiring and exploring potentially high impact oil and gas opportunities in proven and producing areas. Entek has acquired a significant portfolio of acreage in the offshore shallow waters of the Outer Continental Shelf of the Gulf of Mexico. The Company has a total of 5 blocks in the Gulf of Mexico prospective for oil with a combined gross prospective resource of over 30 MMBOE some of which (VR 342 and VK 818) has been proven by recent and previous drilling. Onshore in the Green River Basin the Company’s interest covers approximately 80,000 gross acres of highly prospective leasehold that includes existing producing coal bed methane wells, infrastructure and long life 2P conventional and shale resource reserves. The primary focus of the Company onshore is the appraisal of its Niobrara Oil Resource Play. Onshore the Company has a share of gross Contingent Resource of 187 MMBO and 191 BCFG (conservative 4% recovery) and Reserves of 16.2 MMBO and 114 BCFG (total P1, P2 and P3 reserves).

Nomenclature:

BO Barrels of Oil BOPD Barrels of Oil Per Day MMCFD Million Cubic Feet of Gas per Day