HYDROCARBON DYNAMICS LIMITED — Capital/Financing Update 2010

Dec 2, 2010

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3 December 2010 Non-Renounceable Rights Issue Update

P ryme Oil a nd Gas Limited ( Pryme ) refers to the no n -renounce a ble rights issue ann o unced on 31 A ugust 201 0 and offer e d to eligibl e sharehold e rs on 20 September 2 010 ( Rights Issue ).

P ryme advi s es that th e Rights Issue closed on 30 No v ember 20 1 0 with ap p lications f o r 16,408,539 o rdinary sh a res receiv e d for total subscribed funds of $ 1,312,683. 1 2. On 17 November 9,789,488 of t h ose ordin a ry shares were allot t ed to Rig h ts Issue subscribers. The bala n ce of the Rights Iss u e, 6 ,619,051 ordinary sha r es ( New Shares ), will be allotted on 6 Dece m ber 2010.

T he Rights Issue shor t fall was 8, 5 97,878 or d inary shar e s ( Shortfall Shares ). The Direc t ors expect to p lace the S h ortfall Sha r es by 9 D e cember 2 0 10 as allo w ed under E xception 3 of ASX Li s ting Rule 7.2. T he placem e nt of Shor t fall Shares does not r e quire shar e holder approval.

T he issued capital of P ryme afte r the allot m ent of the New Shar e s and the Shortfall S hares will be 2 25,057,75 4 fully paid o rdinary sh a res.

T he Directo r s wish to thank shar e holders for their parti c ipation in t h e Rights I s sue and t h eir continued s upport.

F or further in f ormation pl e ase contact :

Justin Pettett Ryan Messer Managing Director Chief Operating Officer Pryme Oil and Gas Limited Pryme Oil and Gas Limited T elephone: +61 7 3371 1 1 03 Telephon e : +1 713 401 9806 Website: www.prymeoilandgas.com ASX Code: PYM OTCQX Code: POGLY

P ryme Oil a n d Gas Limi t ed is an Au s tralian oil and natural g as produce r and explor e r with inter e sts in the G ulf S tates of the U.S. The c ompany ha s oil and ga s exploration projects fo c used on Lo u isiana, the fifth-largest o il- p roducing st a te in the U. S . These p r ojects are f u nded in pa r t by existin g cash flow. Pryme’s bo a rd of direct o rs a nd management team has over 1 0 0 years o f energy in d ustry exper i ence and h as uniquel y focused lo c al k nowledge, u nderscored b y the prov e n track reco r ds of its managers and d irectors. D i rectors of the company a re G eorge Lloy d (Non-Exec u tive Chairm a n), Justin Pettett (Mana g ing Directo r ) and Ryan M esser (Executive Direc t or) a nd Greg Sh o rt (Non-Executive Direc t or).

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