INVICTUS ENERGY LTD — Capital/Financing Update 2012

Aug 15, 2012

ASX Announcement 16 August 2012

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Drilling Commences at Mopane Project in South Africa

• First well spuds in expanded Mopane drilling program

• All Land Access Agreements complete

• Best Estimate of 1.9 Tcf Gas In Place

Southern Africa Coal Bed Methane explorer Sunbird Energy Ltd (ASX: SNY) is pleased to announce that drilling has commenced at its Mopane Project in South Africa.

Following rig mobilisation to site, the first core hole in an eight well program was spudded on 14 August.

The Mopane drilling program has been increased from three core holes to eight, following the interpretation of an aeromagnetic survey completed by Sunbird in late 2011. The aeromagnetic survey results demonstrate the potential for successful exploration and development of a large scale CBM project at Mopane. Land Access Agreements have been completed for all eight core holes, paving the way for an efficient drilling program.

Sunbird Managing Director Will Barker said the aim of the program was to determine the gas content, reservoir characteristics and resource potential of Mopane which, based on an Independent Expert Report, has a Best Estimate Gas In Place of 1.90 trillion cubic feet (Tcf), with a High Estimate of 13.66 Tcf.

“This program is aimed at enabling Sunbird to accelerate resource definition and to commence pilot drilling in 2013. The first core hole is located immediately adjacent to an existing coal exploration borehole and will be drilled to a total depth of approximately 550m with the coals located within a 100m thick carbonaceous shale package from a depth of 450m.

“Studies have shown that these extensive coal deposits, combined with favourable depth, provide significant resource potential across the Mopane Project,” he said.

Each core hole will involve the sampling of coal seams for gas desorption analysis to determine the gas content of the coals. The wells will then undergo geophysical logging and permeability testing to determine the reservoir characteristics of the coal intervals.

The coal seams within the Mopane area are the equivalent formation and similar in quality to those that have been successfully developed by Anglo American for CBM production in the neighbouring Waterberg Basin, where a 1 Tcf CBM resource has been defined. The target Ecca coal package,

Sunbird Energy Ltd – ACN 150 956 773 Level 1, 50 Ord Street, West Perth, WA 6005 www.sunbirdenergy.com.au T: +61 (0) 8 9463 3260 F: +61 (0) 8 9462 6630

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based on drilling results from within the Mopane licence, provides over 32 metres of coal at depths greater than 400 metres (see figure 1).

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Figure 1. Schematic well profile for Mopane Project detailing coal seams based on existing well data.

Mopane is located in the Limpopo Province of South Africa about 420km northeast of Johannesburg (see figure 2). The project lies on the western limit of the Tshipise Coalfield which contains coal projects owned by Coal of Africa. Mopane is traversed by major electricity transmission lines that form part of the Southern African Power Pool and is also close to major local mining and mineral processing facilities. With a licence area of 1,577km[2] , the project is held by Sunbird (74%) and Umbono (26%).

For further information please visit www.sunbirdenergy.com.au or contact:

Will Barker Managing Director, Sunbird Energy Ltd. Tel: +61 8 9463 3260 Sarah Allchurch Media Contact, Allchurch Communications Tel: +61 8 9381 6625

About Sunbird Energy Ltd

Sunbird Energy Ltd is an ASX-listed southern Africa-focused coal bed methane (CBM) and unconventional gas explorer and developer.

Sunbird Energy Ltd – ACN 150 956 773 Level 1, 50 Ord Street, West Perth, WA 6005 www.sunbirdenergy.com.au T: +61 (0) 8 9463 3260 F: +61 (0) 8 9462 6630

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Sunbird has a portfolio of five CBM projects covering an extensive area (8,647km[2] ) of prospective coal basins across southern Africa, where an abundant coal resource, limited domestic gas supply and growing energy needs have created significant opportunity for the development of large scale energy projects.

Sunbird has a strategic alliance with African joint venture partner Umbono Capital Partners (Proprietary) Limited, which provides Sunbird with an experienced local operational team and new project pipeline.

Sunbird is conducting a phased exploration program that will define the resource base and demonstrate the commercial potential of its portfolio of CBM assets which contain a Best Estimate Gas-in-Place of 5.3 Tcf (Trillion cubic feet) and up to a High Estimate of 29.2 Tcf

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Figure 2. Mopane Project location map.

Sunbird Energy Ltd – ACN 150 956 773 www.sunbirdenergy.com.au

Level 1, 50 Ord Street, West Perth, WA 6005 T: +61 (0) 8 9463 3260 F: +61 (0) 8 9462 6630