MARMOTA LIMITED — Capital/Financing Update 2007

Dec 12, 2007

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ABN 38 119 270 816

Exploration Office 11A Croydon Rd Keswick SA 5035

Tel +61 8 8375 3900 Fax +61 8 8375 3999 www.marmotaenergy.com.au

EXPLORATION UPDATE – NEW PALAEOCHANNELS DISCOVERED

Highlights

• Ambrosia gravity survey confirms the presence of previously unknown paleochannel drainage system on the Mulgathing tenement

• Important delineation of further extensions to the previously identified paleochannel drainage system running through the Ambrosia tenement

Marmota Energy Limited (ASX Code: “MEU”) is pleased to announce initial work has commenced on the Company’s Ambrosia and Mulgathing tenements in Northern South Australia (EL 3358, 3684), with preliminary data received from the surveying completed to date.

The preliminary gravity data have been used to delineate previously unknown palaeochannels with potential for sandstone-hosted uranium on the Mulgathing tenement and the delineation of extensions to the significant palaeochannel system running through the Ambrosia tenement. The data will greatly aid in refining the Company’s planned drilling program as well as providing for additional targets.

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Figure 1. Ambrosia, Mulgathing targeted gravity infill stations

The data received to date will greatly assist future drilling activities, particularly on the Mulgathing tenement, where there has been a significant improvement in delineating paleochannel drainage systems.

Preliminary infill data acquired on Ambrosia has further enhanced discrete coincident magnetic, gravity and geochemical anomalies offering additional bedrock (IOCGU) targets for drill testing.

With the survey completed ahead of schedule Marmota intends to accelerate drill testing of targets on Ambrosia and Mulgathing late in the first quarter of 2008.

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Indicative channel systems
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Figure 2. Ambrosia, Mulgathing preliminary residual gravity data.

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Indicative channel systems
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Figure 3. Ambrosia, Mulgathing preliminary enhanced gravity data with dark areas indicating probable channel systems.

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Dom Calandro Managing Director Marmota Energy

About Marmota Energy Limited

Marmota Energy Limited is a uranium exploration company based in South Australia. The Company is exploring for sandstone-hosted uranium in palaeochannels, sedimentary basins and bedrock settings in South Australia’s Gawler Craton and Curnamona Province, placing it at the heart of the Australia’s uranium exploration province.

Marmota has plans for targeted acquisition of high resolution geophysical and geochemical data to further enhance its target assessment and ranking processes over the coming months.

Timing	Action	Tenement	Project Name
4Q 2007	Gravity Survey	EL 3358, EL 3684	Ambrosia, Mulgathing
1Q 2008	High resolution AEM Surveys	EL 3358, EL 3684, EL 3355, 3356, 3561, EL 3357, EL 3907, 3908, EL 3458	Ambrosia, Mulgathing, Southern Eyre Peninsula, Wadikee, Coonarie,Eureka

			Bluff
4Q 2007/1Q 2008	Geochemical surveys	EL 3358, EL 3684, EL 3355, 3356, 3561, EL 3357, EL 3907, 3908	Ambrosia, Mulgathing, Southern Eyre Peninsula, Wadikee, and Coonarie
Late 1Q 2008	Drilling	EL 3358, EL 3684	Ambrosia, Mulgathing
Late 1Q 2008	Gravity Infill Surveys	EL 3561, EL 3359, EL 3685, EL 3775, EL 3907, EL3908, EL 3909 EL 3910, EL 3907, 3908	Brimpton Lake, Wynbring, Kimono Tank, Indooroopilly, Phar Lap, Mulyungarie and Coonarie

For further information please contact:

Mr. Dom Calandro Mr Duncan Gordon Managing Director Investor Relations Marmota Energy Limited Marmota Energy Limited Ph: 08 8375 3900 Ph: 08 8232 8800 Email: info@marmotaenergy.com.au M: 0404 006 444

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr D J Calandro, who is a Member of the Australian Institute of Geoscientists. Mr Calandro is employed full time by the Company as Managing Director and, has a minimum of five years relevant experience in the style of mineralisation and type of deposit under consideration and qualifies as a Competent Person as defined in the 2004 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” Mr Calandro consents to the inclusion of the information in this report in the form and context in which it appears.