PILOT ENERGY LIMITED — Capital/Financing Update 2012

Dec 20, 2012

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ASX : EHR

21 December 2012

ASX Market Announcements Office, Australian Securities Exchange Limited, 20 Bridge Street, Sydney NSW 2000

RE: Expiry of Unquoted Options and Cancellation of MD's Performance Rights

Unquoted options totalling 10,000,000 with an exercise price of $0.06 were not exercised being well out of the money, and having expired are now cancelled.

In addition the Board has resolved that the KPIs related to the Managing Director's 40,000,000 performance rights are no longer capable of being met and are therefore cancelled.

The issued securities of the Company, ignoring the securities which are yet to be issued pursuant to the fully underwritten renounceable rights issue previously announced, are now as follows:

• Chess Depository Interests (ORD) 861,010,038

• Unquoted common shares 3,264,423  Options exp various ex various 38,158,228

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ME Lucas-Smith Company Secretary

Ends

FOR FURTHER INFORMATION PLEASE CONTACT:

Torey Marshall, Managing Director Mal Lucas-Smith, Company Secretary

+618 8212 0579 0418 366 532