INVICTUS ENERGY LTD — Capital/Financing Update 2014

Sep 23, 2014

ASX Announcement 24 September 2014

==> picture [195 x 31] intentionally omitted <==

Sunbird Receives Initial Capital

Southern African gas explorer and developer Sunbird Energy Ltd (ASX: SNY ) (the Company) is pleased to announce it has received the first payment by Vandasia Investments Limited (Vandasia) totaling USD$3 million as part of Stage 1 of the Vandasia Transaction, previously announced on 9 September 2014.

Completion of Stage 1 of the Transaction is due to take place later this week following the final payment of USD$2 million from Vandasia. On receipt of cleared funds totaling USD$5 million, Sunbird will issue 20,367,127 fully paid shares, providing Vandasia with 14.9% of the Company. The capital raising will be at an equivalent of approximately AUD$0.274 per share and represents a premium of 44.3% to the Company’s closing share price on 8 September prior to announcement of the Transaction.

Stage 2 of the investment (which is subject to shareholder approval and execution of a Gas Sales Term Sheet with a potential customer) includes the issue of an additional 23,021,757 shares to Vandasia for an aggregate subscription amount of approximately USD$9,350,000, and the purchase and conversion 47.75 million options, which will result in Sunbird receiving approximately an additional US$8,850,000 (subject to exchange rates). Completion of the second stage is due by 30 November 2014 and will provide Vandasia up to a 43.9% interest in the Company.

Completion of the full Transaction will deliver Sunbird over AUD$25m in capital at an weighted average price of approximately AUD$0.34 per share (subject to exchange rates), representing a premium of approximately 80% to Sunbird's closing share price on 8 September prior to announcement of the Transaction.

The Transaction will deliver the funding required to advance the Ibhubesi Gas Project to commercialisation and provides Sunbird with a highly capable strategic shareholder with extensive industry experience in Africa.

The investment by Vandasia demonstrates the value proposition of the Ibhubesi Gas Project as South Africa’s largest undeveloped gas field and the advanced nature of Sunbird’s gas supply negotiations.

**** ENDS ****

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

Will Barker Managing Director, Sunbird Energy Ltd Tel: +61 8 9463 3260 Kerwin Rana Chairman, Sunbird Energy Ltd Tel: +27 11 484 5005

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

1

==> picture [195 x 31] intentionally omitted <==

About Sunbird Energy Ltd

Sunbird Energy Ltd is an ASX-listed (ASX:SNY) gas explorer and developer focused on southern Africa where limited domestic gas supply and growing energy needs have created significant opportunity for the development of large scale energy projects.

Sunbird holds a 76% interest in Ibhubesi Gas Project (IGP) which is the largest undeveloped gas discovery in South Africa, 540 Bcf 2P (SNY 76%: 410 Bcf). The IGP is located within Production Right Block 2A, which covers a 5,000km[2] area within the Orange Basin. The block is located 380km north west of Cape Town and 70 km off the coast of the Northern Cape Province.

The Ibhubesi Gas Project has multiple development opportunities to supply the high value South African energy market including ongoing gas sales negotiations with Eskom for the provision of gas to the existing Ankerlig Power Station, Independent Power Producers and major industrial users.

Sunbird also has a portfolio of five Coal Bed Methane (CBM) projects covering an extensive area (10,070 km[2] ) of prospective coal basins in South Africa and Botswana and with a 644 Bcf 2C (SNY 74%: 477 Bcf) gas resource across its Mopane project in South Africa.

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

2