LAKES BLUE ENERGY NL — Capital/Financing Update 2012

May 7, 2012

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A.C.N. 004 247 214

Lakes Oil N.L.

ASX Announcement And Media Release 8 May 2012

Registered Office: Level14, 500 Collins Street Melbourne Vic 3000 Ph: +61 3 9629 1566

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LAKES OIL NL

MOREYS-1 Update

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Moreys-1 Rig on site The site is approximately 8kms west of Timboon in Victoria’s Western District

Lakes Oil NL advises that the total depth of 2300 metres has been reached.

The company has assessed the results of electric logs and will proceed to re-test the interval at 1987-2005 metres.

Moreys-1 is being funded by Armour Energy Ltd to a cost of $2.5M to earn a 51% interest in PEP169.

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