PO VALLEY ENERGY LIMITED — Capital/Financing Update 2010

May 19, 2010

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ASX / MEDIA RELEASE Wednesday 19 May, 2010

The Manager Company Announcements Office ASX Limited Level 4, Exchange Centre 20 Bridge Street SYDNEY NSW 2000

Dear Sir/Madam,

Attached is an amended release in relation to commencement of production at the Company's Sillaro field which was released earlier today and which was incorrectly dated 19 April 2010 instead of 19 May 2010.

Yours faithfully,

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Lisa Jones

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ASX / MEDIA RELEASE Wednesday, 19 May 2010

SILLARO COMMENCES PRODUCTION

Po Valley Energy Limited (ASX: “PVE”) today announced that commercial gas production had commenced at its second production field in Northern Italy.

Production from the first of two production wells in the Sillaro field (near Bologna) has begun and the second well is planned to be brought in to production over the next fortnight.

Production from double completed Sillaro 2dir well was operating at its targeted production rate of 31,200m3/day from level A and will be increased further when level E is brought into production over the next week. Production from Sillaro 1dir is planned to follow.

Over the next month the plant will be brought up to the planned full production rate of 110,000m3/day.

There have been no safety incidents during the installation and commissioning of the Sillaro plant.

MEDIA CONTACTS:

Michael Masterman Po Valley Energy 0417 851 303

Kevin Skinner Field Public Relations (08) 8234 9555 / 0414 822 631