METGASCO LTD — Capital/Financing Update 2013

Jan 10, 2013

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ASX/MEDIA RELEASE

11 January 2013

Drilling announcement Thornbill E04 spuds

Metgasco advises that the Thornbill E04 well was spudded with AJ Lucas Rig 103 last night. The current operation is drilling a surface hole and installing surface casing.

Thornbill E04 is a simple vertical well whose objective is to better define coal distribution in PEL 426 . The total planned depth of the well is 800 metres. The well will be “plugged and abandoned” before the rig leaves the site and the site rehabilitated.

This well is the start of a work program that has been approved by the New South Wales Government. One of the short to medium term goals of this program is to provide competitively priced natural gas to local businesses.

Metgasco’s Managing Director, Mr Peter Henderson reaffirmed that: “Once we have completed drilling our exploration wells, we will drill some lateral wells to demonstrate the productivity of the coal seams, before drilling our conventional prospect, the Greater Mackellar structure.

Metgasco has a 100% interest in PEL 426.

ENDS

Investors: Sean Hooper 0411 760 509

Media: Richard Shields 0418 418 877

Metgasco Limited ACN 088 196 383 Level 9, 77 Pacific Highway North Sydney NSW 2060 Tel: (02) 9923 9100 Fax: (02) 9923 9199 Website: www.metgasco.com.au