INVICTUS ENERGY LTD — Capital/Financing Update 2012

Mar 20, 2012

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ASX Announcement

21 March 2012

Drilling Commences at Ermelo CBM Project

HIGHLIGHTS

• Evaluation of Sunbird’s 5.3 Tcf GIP asset base underway in Southern Africa

• First well spudded at Ermelo Project in a 9-hole regional exploration program to delineate resource potential

• Drilling to follow at Springbok Flats and Mopane by early Q3 2012

Sunbird Energy Ltd (ASX:SNY) (“Sunbird” or “the Company”) is pleased to announce that drilling has commenced at its Ermelo Project, located approximately 200km south east of Johannesburg, South Africa, in the Witbank coal mining region.

The initial well was spudded on 20 March 2012, as part of a regional exploration program that will see a total of nine core holes drilled over Sunbird’s three lead projects, the Ermelo, Springbok Flats and Mopane Projects.

Managing Director Will Barker said the aim of the Ermelo drilling program is to determine the resource potential within the project area.

“The commencement of Sunbird’s exploration drilling program represents the next significant step in evaluating the Company’s large asset base of more than 5.3 trillion cubic feet (Tcf) of best estimate gas in place (GIP).

“Each core hole will involve the sampling of coal seams for gas desorption analysis to determine the gas content of the coals. Additionally, each core hole will undergo geophysical logging and permeability testing to determine the reservoir characteristics of coal intervals,” he said.

The Ermelo drilling program was approved by the Petroleum Agency of South Africa (PASA) on 12 March 2012, and is being undertaken by Earth Resources (Pty) Ltd, a South African drilling company with significant experience in coal and Coal Bed Methane (CBM) drilling. Gas desorption analysis services will be undertaken by Australian Laboratory Services Witbank.

The Ermelo program is expected to be completed by May with gas desorption results due 60 to 90 days after completion of the final well. The drill rig and crew will then mobilise to the Springbok Flats Project to commence drilling of 3 core holes

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Sunbird Energy Ltd – ACN 150 956 773 Suite B9, 431 Roberts Road, Subiaco, WA 6008 www.sunbirdenergy.com.au Tel: +61 (0) 8 9287 4605 Fax: +61 (0) 8 9287 4655

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before moving to the Mopane Project to complete the 9-hole program by early Q3 2012.

The current drilling follows Sunbird’s successful IPO and ASX listing in January 2012.

ENDS

Ermelo Project Highlights

• (i) Licence area of 1,443km[2] , held by Sunbird (74%) and Umbono(26%), Sunbird’s South African joint venture partner.

• (ii) The project is traversed by the Sasol Gas Pipeline and is located approximately 60km east of Secunda where Sasol operates its major coal and gas to liquids and petrochemical complexes.

• (iii) An old coal mine on the project area operated for 20 years before being closed in 1997. Underground explosions in the old Ermelo mine confirm the presence of large quantities of methane gas, underpinning the area’s CBM potential.

• (iv) Extensive historic drilling by coal miners provides a data base of over 500 boreholes in and adjacent to the project area providing a detailed understanding of the coal geology and resource.

• (v) The Ermelo permit and Ermelo West application provide a combined Best Estimate GIP of 0.8 Tcf, with a High Estimate GIP of 3.45 Tcf.

About Sunbird Energy Ltd

Sunbird has a portfolio of five CBM projects covering an extensive area of approximately 8,647km² in prospective coal basins in southern Africa. There is a significant opportunity for the development of large scale energy projects with Best Estimate Gas ‐ in ‐ Place of 5.3 Tcf, and up to a High Estimate of 29.2 Tcf.

Sunbird has a highly experienced Board with extensive background in exploring and developing Australian and international CBM and unconventional projects.

Sunbird is conducting a phased exploration program that will delineate the resource base and demonstrate the commercial potential of its portfolio of CBM assets. With increasing demand for power in the hungry southern Africa market, CBM provides a significant opportunity for natural gas to become an alternative source of energy for the region.

For further information	Media contact
Will Barker	Zoey Tyson
Managing Director	Purple Communications
+61 8 9287 4605	+61 6314 6300 / +61 406 543 989
wbarker@sunbirdenergy.com.au	ztyson@purplecom.com.au

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Sunbird Energy Ltd – ACN 150 956 773 Suite B9, 431 Roberts Road, Subiaco, WA 6008 www.sunbirdenergy.com.au Tel: +61 (0) 8 9287 4605 Fax: +61 (0) 8 9287 4655

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Figure 1. Sunbird’s regional exploration program and lead projects.

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Sunbird Energy Ltd – ACN 150 956 773 Suite B9, 431 Roberts Road, Subiaco, WA 6008 www.sunbirdenergy.com.au Tel: +61 (0) 8 9287 4605 Fax: +61 (0) 8 9287 4655