EMPEROR ENERGY LIMITED — Capital/Financing Update 2010

Oct 20, 2010

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21 October 2010

Company Announcements Office Australian Stock Exchange Limited 10[th] Floor, 20 Bond Street Sydney NSW 2000

Dear Sirs

CANNING BASIN OPERATIONS UPDATE BACKREEF-1 DRILLING REPORT NO.5

The Directors of Oil Basins Limited ( OBL , ASX codes OBL , OBLOA and OBLOB, or the Company) wish to make the following ASX announcement relating to the drilling operations at Backreef-1, Backreef Area, Canning Basin, onshore Western Australia (WA) :

1. The installation and testing the well blow-out preventors (BOP’s) was completed at 6:00pm WST 20 October.

2. As at 6:00am WST 21 October, operations were drilling with a 216mm (8-1/2 inch) diameter bit at 744m to prepare for the a formation integrity test (FIT) .

3. As at 7:30am WST drilling operations have recommenced (refer to Figure 1 – Time versus Depth curve).

In accordance with ASX Listing Rules, during the conduct of Backreef-1 drilling operations, OBL will advise the market weekly (on Thursdays), or after concluding an important well drilling operation and/or obtaining an important assessment or result.

By funding 100% of the drilling and completion costs of Backreef-1, OBL is earning upto 90% of Backreef-1 and the Backreef Area.

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Kim McGrath Chairman

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