FITZROY RIVER CORPORATION LTD — Capital/Financing Update 2008

Jul 20, 2008

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NEWS RELEASE

21 JULY 2008

DRILLING OF THE FIRST LATERAL WELL OF FOLSCHVILLER 2 APPRAISAL WELL COMPLETE LORRAINE, FRANCE

HIGHLIGHTS

• Successful completion of the first lateral from Folschviller 2 appraisal well at the 100% owned Lorraine Project in eastern France.

• Drilling continues with up to a further four laterals to be completed from the one mother bore.

PROGRAM

European Gas Limited (“European Gas”) is pleased to announce the completion of drilling the first lateral well from Folschviller 2 appraisal well at the company’s 100% owned Lorraine Project in eastern France.

The Folschviller 2 well is being drilled at a site 850 metres east of the town of Folschviller and immediately adjacent to company’s Folschviller St 1 stratigraphic well (see Figure 1.).

The first lateral has drilled a total of 215 metres of coal and gassy sediments. The target has been the coal of the Marie-Maurice-Noirel seam. In an adjacent core hole, a net coal thickness of 10.3 metres and an average gas content of 9.9 cubic metres pet tonne (m³/t) or 350 standard cubic feet per tone (Scf/t) was recorded. The lateral terminated at 1025.2 metres true vertical depth (TVD). The seam is well consolidated and uniformly structured with strong natural fracturing and minor faulting. Mud gas readings in the coals and adjacent sediments are high to very high and include significant values for ethane and the higher gases.

The challenges of drilling horizontally through coal seams in this region have been successfully met and as a result the risks associated with development options have been significantly reduced.

The rig has now commenced the drilling of the next of four more laterals in the three coal seams at Folschviller.

Production testing will follow the completion of drilling to assist the planning of subsequent production wells. These tests will be used to determine reserves, deliverability and evaluate the application of a lateral drainage strategy for appraisal and development of the Lorraine coals.

The drilling contractor for the Folschviller 2 program is S.M.P. of Château-Renard, France with directional services provided by Target Well Control of Aberdeen, UK.

The program is in preparation for the development of the large Gas in Place (GIP) resource which to date totals 28.1 billion cubic metres (991.2 billion cubic feet) within approximately 5% of the Company’s Lorraine permit and application areas. This GIP resource is likely to be enhanced due to;

• In the Folschviller St1 and Diebling St1 wells, coal thicknesses were 25% to 80% higher than that used in the original GIP calculations;

• The overall gas content values were 15% to 25% higher than those used in making the original GIP calculations.

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Figure 1. Folschviller 2 Drill Plan

ABOUT EUROPEAN GAS LIMITED

European Gas Limited is a hydrocarbon producer/developer/explorer with projects in western Europe. The strategy of the company is to develop Coal Bed Methane and Coal Mine Methane projects, in particular, in France where the company having major holdings under licence holds a significant competitive advantage.

The western European natural gas market is substantial with advanced infrastructure, including extensive pipeline networks and a free and open market.

The company also holds hydrocarbon royalties in the Canning Basin of Western Australia.

For further information please contact:

Anthony McClure (Managing Director) Alan Flavelle (Executive Director) Corporate Technical (+33) 1 47 42 14 00 (+33 ) 6 74 22 48 73

or refer to the European Gas Limited web-site: www.europeangas.fr.

COMPLIANCE STATEMENT

The technical information quoted in this announcement has been compiled by Mr. Alan Flavelle and geoscientists under his supervision. Mr Flavelle is a Fellow of the Australasian Institute of Mining and Metallurgy and is a member of the Society of Petroleum Engineers. Mr Flavelle has consented to the inclusion in this report of the matters based on the information in the form and context in which it appears.

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