NEURIZER LTD — Capital/Financing Update 2011

Jun 1, 2011

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EUREKA ENERGY LTD

(ASX: EKA, “Company” or “Eureka)

ASX RELEASE

2 JUNE 2011

MARATHON ACQUIRES HILCORP PARTNERSHIP’S EAGLE FORD ACREAGE FOR US$3.5 BILLION

Eureka notes last night’s announcement by Marathon Oil Corporation (NYSE: MRO “Marathon”) that it has reached an agreement to acquire Hillcorp Resources Holdings, LP (“Hilcorp Partnership“) assets in the Eagle Ford Shale trend in Southern Texas for USD 3.5 billion. The transaction is conditional on customary terms and conditions and relevant statutory approvals.

The principal asset of the Hilcorp Partnership is a 141,000 net acres in the Eagle Ford shale which include interests in the Sugarloaf Area of Mutual Interest (“AMI”).

Eureka holds over 6,200 net acres in the Eagle Ford of which 1,500 net acres are in the Sugarloaf AMI.

Commenting on the transaction, Eureka Chairman Ian McCubbing said:

"This $3.5 billion transaction, the largest to date in the Eagle Ford shale, highlights the accelerating interest in and demand for quality Eagle Ford Shale assets. The Hilcorp Partnership and its associates have done an outstanding job in developing the Sugarloaf AMI since their involvement began last year. We now welcome the involvement of Marathon and look forward to working with them as a joint venture partner in the continued development of the Sugarloaf AMI. ”

Marathon is the fourth largest U.S.-based integrated international energy company and has announced that with completion of this and other transactions due to close by the end of 2011 it expects to more than double its Eagle Ford acreage position to 285,000 net acres.

EUREKA ENERGY LIMITED LEVEL 3, 3 ORD STREET TELEPHONE: +61 8 9321 9337 ABN 46 116 829 139 WEST PERTH WA 6005 FAX: +61 8 6314 1557

www.eurekaenergy.com.au

Marathon president and CEO Clarence P. Cazalot Jr. made the following comments in Marathon’s press release:

"Marathon has captured a top-five acreage position in the core of the premier resource play in the U.S. since first entering the Eagle Ford in November 2010. This transaction enhances our already strong North America position focused on unconventional, liquidsrich resource plays that provide low-risk, scalable and profitable growth," …

… "In addition to establishing our position in the highest value oil and condensate core area of the Eagle Ford shale, these assets will deliver immediate production and reserve additions, an active Company-operated drilling program, significant resource potential, as well as solid economic returns and profitability that are immediately accretive to earnings and operating cash flow, and expected to be self-funding by 2014.”

"With our technical expertise and best-in-class drilling, along with our project execution skills, we are poised to maximize profitable reserve and production growth across our liquids-rich resource plays, particularly in the Eagle Ford.”...

Under the terms of the agreements governing the Sugarloaf Area of Mutual Interest (“AMI”), Hilcorp will cease to be the project operator at such time as it ceases to hold any ownership interest in the AMI. Hilcorp will continue to be the project operator until the acquisition closes, (expected to occur on 1 November 2011) and Eureka anticipates confirmation from Marathon that it intends to become the project operator.

ABOUT EUREKA

Eureka is an Oil & Gas exploration, development and production company listed on the Australian Securities Exchange and focused on the development of its onshore Eagle Ford Shale interests in Southern Texas, USA. Eureka participates in the Sugarloaf , Pan de Azucar and Brioche projects.

The Sugarloaf AMI comprises approximately 24,150 gross acres (approximately 1,500 net acres) and Eureka holds a 6.25% working interest (subject to 25% lease royalties). The Sugarloaf project is located in the condensate-rich window of the Eagle Ford shale and production commenced in mid-2010. 13 wells are currently on production with 13 new wells expected to be drilled during 2011.

Eureka’s interests in Pan de Azucar are structured as a 100% Working Interest in 675 gross acres and a 9.4% working interest in a further 916 gross acres (working interests are subject to an average of 27% lease royalties). The project is located in the Eagle Ford oil or condensaterich fairway and the first well was spud in April 2011.

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Eureka Energy also holds a 100% working interest (subject to an average of 25% lease royalties) in 3,975 acres in Burleson and Washington counties ( Brioche Project ). The acreage lies within the eastern liquids-rich fairway and potentially is within the gas-condensate window of the Eagle Ford shale. The Brioche Project area is located in the northeast part of the Eagle Ford trend some 70km Northeast of Pan de Azucar acreage and about 200km Northeast of Sugarloaf.

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