HYDROCARBON DYNAMICS LIMITED — Capital/Financing Update 2010

Nov 15, 2010

16 November 2010

==> picture [11 x 108] intentionally omitted <==

==> picture [32 x 108] intentionally omitted <==

==> picture [54 x 55] intentionally omitted <==

==> picture [54 x 55] intentionally omitted <==

==> picture [54 x 55] intentionally omitted <==

==> picture [54 x 55] intentionally omitted <==

==> picture [54 x 55] intentionally omitted <==

==> picture [54 x 55] intentionally omitted <==

==> picture [54 x 55] intentionally omitted <==

==> picture [54 x 55] intentionally omitted <==

==> picture [55 x 55] intentionally omitted <==

==> picture [54 x 55] intentionally omitted <==

==> picture [54 x 54] intentionally omitted <==

==> picture [54 x 54] intentionally omitted <==

==> picture [54 x 54] intentionally omitted <==

==> picture [54 x 54] intentionally omitted <==

==> picture [54 x 54] intentionally omitted <==

==> picture [54 x 54] intentionally omitted <==

==> picture [54 x 54] intentionally omitted <==

==> picture [54 x 54] intentionally omitted <==

==> picture [55 x 54] intentionally omitted <==

==> picture [54 x 54] intentionally omitted <==

Early Issue of shares under the Rights Issue

P ryme Oil a nd Gas Limited (Pr y me or the Company) refers to the non-renounceabl e rights issue a nnounced on 31 August 2010 a nd offered to eligible sharehold e rs on 20 S eptember 2010 (Rig h ts I s sue).

P ryme advi s es that it h a s already r eceived applications f o r shares u n der the Ri g hts Issue f r om a num b er o f sharehol d ers, inclu d ing Pryme’s Director s , Chief Fi n ancial Offi c er and th e Compan y ’s two ma j or s hareholder s , Belmont Park Inve s tments Pt y Limited and Panora m a Ridge P ty Limited , all of wh o m h ave applie d for their f u ll entitlement to share s .

T he Company intends to allot sh a res on all a pplication s and clear e d funds r e ceived un d er the Rig h ts I s sue as at 5 .00pm (A E ST) on Tu e sday 16 N o vember 2 0 10. The s h ares will b e allotted o n Wednesday 17 Novemb e r 2010.

The Rights Issue otherwise remains open , in acc o rdance with the an n ouncemen t made on 1 N ovember 2 010, until 5.00pm (AEST) on 30 November 2010, unle s s extende d .

T he Directo r s wish to t h ank share h olders for t heir contin u ed suppor t and their p articipatio n in the Rig h ts I s sue.

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 (Exe c utive Direc t or) a nd Greg Sh o rt (Non Executive Direc t or).

==> picture [8 x 56] intentionally omitted <==

==> picture [54 x 56] intentionally omitted <==

==> picture [54 x 56] intentionally omitted <==

==> picture [54 x 56] intentionally omitted <==

==> picture [54 x 56] intentionally omitted <==

==> picture [54 x 56] intentionally omitted <==

==> picture [54 x 56] intentionally omitted <==

==> picture [54 x 56] intentionally omitted <==

==> picture [15 x 56] intentionally omitted <==