ODYSSEY GOLD LTD — Capital/Financing Update 2014

Aug 17, 2014

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ASX ANNOUNCEMENT

18 August 2014

NOTICE TO OPTIONHOLDERS FOR ENTITLEMENTS OFFER

Odyssey Energy Limited (“ Odyssey ” or “ Company ”) advises that the attached notice in respect to the Company’s three for two renounceable entitlements offer (“ Offer ”) have been sent to current optionholders.

For enquiries, please contact:

Dylan Browne | Company Secretary Tel: +61 8 9322 6322

Odyssey Energy Limited ABN 73 116 151 636

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18 August 2014

Dear Optionholder

Renounceable Entitlements Offer

On 17 June 2014, Odyssey Energy Limited ( Company ) announced a renounceable pro rata offer of securities to its shareholders on the basis of three new shares ( New Shares ) for every two shares held at the record date at an issue price of $0.05 per share ( Offer ).

The Offer is made to shareholders registered at 5.00pm on the record date of 22 August 2014 ( Record Date ).

Only shareholders with a registered address in Australia and New Zealand will be eligible to participate in the Offer ( Eligible Shareholders ).

The Offer is being made pursuant to an offer document lodged with ASX Limited ( ASX ) on 15 August 2014 ( Offer Document ) which is available on the Company’s website at www.odysseyenergy.com.au and on the ASX website at www.asx.com.au.

The Offer is renounceable, which means that Eligible Shareholders will be able to buy and sell their entitlements on ASX.

Optionholders

ASX requires the Company to give you notice that as an optionholder of the Company, if you wish to participate in the Offer with respect to your options, you must exercise your options before the Record Date.

There is no obligation for you to exercise your options. This letter is intended to inform you of your rights in relation to your options and the Offer. If you do not wish to participate in the Offer you do not need to take any action.

Purpose of the Offer

Successful completion of the Offer will raise approximately $3,275,305 (before the costs of the Offer).

The funds raised pursuant to the Offer will allow the Company to improve the Company’s ability to attract new business opportunities in the oil and gas and other sectors as well as to expand its existing project base.

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Indicative Timetable

The timetable for the Offer is as follows:

Event	Date
Lodgement of Offer Document & Appendix 3B with ASX	15 August 2014
Notice of Offer sent to Optionholders	18 August 2014
Notice of Offer sent to Shareholders	19 August 2014
Shares quoted on an "Ex" basis and Rights trading commences	20 August 2014
Record Date for determining Entitlements	22 August 2014
Offer Document and Entitlement and Acceptance Form despatched toEligible Shareholders	26 August 2014
Opening Date of Offer	26 August 2014
Rights trading ends	29 August 2014
Closing Date of Offer	5 September 2014*
Notification of ShortfallAnticipated date for issue of the Securities	10 September 201412 September 2014
Anticipated date for despatch of holding statements	15 September 2014

This timetable is indicative only and subject to change

• Subject to the Listing Rules, the Directors reserve the right to extend the Closing Date for the Offer. Any extension will have a consequential effect on the anticipated date of issue for the Securities.

Details of the Offer are contained in the Offer Document. Before deciding whether to exercise all or any of your options to participate in the Offer, you should consider the Offer Document carefully and consult with your professional advisors if you have any queries.

Yours sincerely

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Dylan Browne Company Secretary