EMERALD RESOURCES NL — Share Issue/Capital Change 2007

Jun 27, 2007

Level 2, 16 Altona Street West Perth WA 6005
Ph: 08 9482 0500 Fx: 08 9482 0505 Email: info@emeraldoilandgas.com www.emeraldoilandgas.com

28 June 2007

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

APPENDIX 3B - EXERCISE OF OPTIONS

Emerald Oil and Gas NL hereby advises that a total of 681 ordinary shares have been issued upon exercise of listed options. An Appendix 3B for the securities is attached.

Yours faithfully,

. a A

John Hannaford Company Secretary

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 17796. Origin: Appendix 5. Amended 17798, 17999, 177/2000, 30/9/2001, 11/3/2002, 1/1/2003, 24/10/2005.

Name of entity

Emerald Oil & Gas NL

ABN

72 009 795 046

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1	$+$ Class of $+$ securities issued or to be issued	Ordinary Shares
2	Number of +securities issued or to be issued (if known) or maximum number which may be issued	681 shares
3.	Principal terms of the +securities (eg, if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities. the conversion price and dates for conversion)	Ordinary Shares - will rank equally with ordinary shares from the date of allotment.

$+$ See chapter 19 for defined terms.

$\overline{4}$ Do the +securities rank equally in all respects from the date of allotment with an existing +class of quoted +securities?

If the additional securities do not rank equally, please state:

• the date from which they do $\bullet$
• the extent to which they $\bullet$ participate for the next dividend. (in the case of a trust, distribution) or interest payment
• the extent to which they do not $\bullet$ rank equally, other than in relation to the next dividend, distribution or interest payment

5 Issue price or consideration

• 6 Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets)
• $\overline{7}$ Dates of entering +securities into uncertificated holdings or despatch of certificates

$\bf 8$

11 June 2007

Number and +class of all +securities quoted on ASX (including the securities in clause 2 if applicable)

Number	$+C$ lass
50,226,255*	Ord
35,605.739*	Listed Options exercisable at 20 cents each on or before 31 May 2008

*This includes 12,750,000 Shares and 6,375,000 Options to be issued subject to shareholder approval at a general meeting to be held on 2 July 2007.

Options exercised at \$0.20 each

Exercise of options

		Number	$+Class$
9	Number and $\pm$ class of all +securities not quoted on ASX	12,143,006	Ord Shares
	(including the securities in clause 2 if applicable)	661,638	Unlisted Options exercisable at 17.68c each expiring on 22 December 2010
		1,500,000	Unlisted Options exercisable at 25c each expiring on 28 February 2010
		2,000,000	Unlisted Options exercisable at 25c each expiring on 31 December 2008
		2,000,000	Options exercisable at 30c each expiring on 31 December 2009
		325,000	ESOP Options exercisable at 25c each expiring on 31 December 2009

Dividend policy (in the case of a $\begin{bmatrix} \text{trust, distribution policy} \ \text{increased capital} \ \text{(interests)} \end{bmatrix}$ $10\,$

$N/A$

Part 2 - Bonus issue or pro rata issue

11	security holder approval Is required?
$12^{\circ}$	Is the issue renounceable or non- renounceable?
13	Ratio in which the $+$ securities will be offered
14	$\pm$ Class of $\pm$ securities to which the offer relates
15	determine $+$ Record date to entitlements
16	Will holdings on different registers (or subregisters) be aggregated for calculating entitlements?
17	Policy for deciding entitlements in relation to fractions

⁺ See chapter 19 for defined terms.

18	Names of countries in which the entity has +security holders who will not be sent new issue documents
	Note: Security holders must be told how their entitlements are to be dealt with.
	Cross reference: rule 7.7.
19	Closing date for receipt оf acceptances or renunciations
20	Names of any underwriters
21	Amount of any underwriting fee or commission
22	Names of any brokers to the issue
23	Fee or commission payable to the broker to the issue
24	Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of +security holders
25	If the issue is contingent on +security holders' approval, the date of the meeting
26	Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled
27	If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders
28	Date rights trading will begin (if applicable)
29	Date rights trading will end (if applicable)
30	How do +security holders sell their

entitlements in full through a broker? $31$ How do +security holders sell part of their entitlements through a broker and accept for the balance? How do +security holders dispose 32 of their entitlements (except by sale through a broker)? 33 +Despatch date

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

• Type of securities 34 $(tick one)$
• Securities described in Part 1 $(a)$
• $\bar{Y}$ All other securities $(b)$

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

35	If the +securities are +equity securities, the names of the 20 largest holders of the additional +securities, and the number and percentage of additional +securities held by those holders
36.	If the +securities are +equity securities, a distribution schedule of the additional +securities setting out the number of holders in the categories $1 - 1,000$ $1.001 - 5.000$ $5,001 - 10,000$ 10,001 - 100.000 $100,001$ and over
-37	A copy of any trust deed for the additional +securities

$+$ See chapter 19 for defined terms.

Entities that have ticked box 34(b)

• 38 Number of securities for which +quotation is sought
• 39 Class of +securities for which quotation is sought
• 40 Do the +securities rank equally in all respects from the date of allotment with an existing +class of quoted +securities?

If the additional securities do not rank equally, please state:

• $\bullet$ the date from which they do
• the extent to which they $\blacksquare$ participate for the next dividend, (in the case of a trust, distribution) or interest payment
• the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment
• Reason for request for quotation 41 now

Example: In the case of restricted securities, end of restriction period

(if issued upon conversion of another security, clearly identify that other security)

42 Number and *class of all *securities quoted on ASX (including the securities in clause 38)

Number	+ Class

Ouotation agreement

• $\mathbf{I}$ *Quotation of our additional *securities is in ASX's absolute discretion. ASX may quote the *securities on any conditions it decides.
• $\overline{\mathcal{L}}$ We warrant the following to ASX.
• The issue of the 'securities to be quoted complies with the law and is not $\bullet$ for an illegal purpose.
• There is no reason why those *securities should not be granted *quotation. $\bullet$
• An offer of the "securities for sale within 12 months after their issue will not require disclosure under section $707(3)$ or section $1012C(6)$ of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any *securities to be quoted and that no-one has any right to return any *securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the *securities be quoted.
• If we are a trust, we warrant that no person has the right to return the $\bullet$ *securities to be quoted under section 1019B of the Corporations Act at the time that we request that the "securities be quoted.
• $\overline{3}$ We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.
• $\overline{4}$ We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before *quotation of the *securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

_ o A

Sign here:

Date: 28 June 2007

(Director/Company secretary)

Print name:

John Hannaford

⁺ See chapter 19 for defined terms.