HYDROCARBON DYNAMICS LIMITED — Capital/Financing Update 2012

Oct 22, 2012

ASX / Media Release

23 October 2012

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Rosewood Plantation 21H No.1 Drilling Update Turner Bayou Chalk Project

HIGHLIGHTS

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Surface hole drilled to 3,800 feet (1,160 metres)

Rosewood Plantation 21H No.1 (61.53% Working Interest / 46.15% NRI)

Drilling of the surface hole for the Rosewood Plantation 21H No.1 well in the Turner Bayou Chalk project located in the North Bayou Jack Field in Avoyelles Parish Louisiana has been completed. Surface casing is being run to a depth of 3,800 feet (1,160 metres).

The well will be drilled to a vertical depth of 15,380 feet (4,687 metres) with a planned 5,000 foot (1,524 metre) lateral through naturally occurring oil bearing fracture systems within the Austin Chalk formation. Drilling of the well is expected to take approximately 60 days with flow testing and connection to production facilities planned for mid-December.

About Turner Bayou

The Turner Bayou project comprises approximately 80 square miles (50,000 acres) which have been imaged by a proprietary 3D seismic survey. Pryme has a 40% working interest in 25,791 acres (10,316 net acres) in the Turner Bayou Project and is initially targeting development of the Austin Chalk horizon. In addition to the Austin Chalk potential of the Turner Bayou project area, exploration drilling within Pryme’s Turner Bayou leases has intersected the Tuscaloosa Marine Shale which is analogous to the prolific Eagle Ford Shale in South Texas.

For further information please contact:

Justin Pettett Managing Director Pryme Energy Limited Telephone: +61 7 3371 1103

Ryan Messer Chief Operating Officer Pryme Energy Limited Telephone: +1 713 401 9806

Website: www.prymeenergy.com ASX Code: PYM OTCQX Code: POGLY

Competent Person Statement and Disclaimer

The information contained in this announcement has been reviewed by Mr Greg Short, BSc. Geology (Hons), a Director of Pryme who has more than 33 years’ experience in the practise of petroleum geology. Mr Short reviewed this announcement and consents to the inclusion of the geological and engineering descriptions and any estimated hydrocarbons in place in the form and context in which they appear. Any resource estimates contained in this report are in accordance with the standard definitions set out by the Society of Petroleum Engineers, further information on which is available at www.spe.org.

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