RED SKY ENERGY LIMITED. — Call Transcript 2011

Jan 20, 2011

Suite 2, 16 Ord Street, West Perth WA 6005 P O Box 1779. West Perth Western Australia 6872

abn: 94 099 116 275 tel: +61 8 9486 1122 fax: +61 8 9486 1011 redskyenergy.com.au

ASX ANNOUNCEMENT

BOARDROOM RADIO BROADCAST

The directors of Red Sky Energy Limited ("Red Sky" or "the Company") are pleased to advise the opportunity to listen to an audio broadcast with Rohan Gillespie, Managing Director in a presentation titled "Red Sky Exploration Update - Rohan Gillespie, Managing Director".

The transcript of the interview follows:

Interview with Rohan Gillespie, Managing Director, Red Sky Energy

• $RRR$ Today Boardroom Radio welcomes the Managing Director of Red Sky Energy, Mr Rohan Gillespie, welcome to Boardroom Radio Rohan.
• $RG:$ Good morning Terry.
• Rohan, Red Sky is an exploration company focussed on CSG or coal seam gas. Can you give us a brief $RRR$ update on where you're operating?
• RG: We have extensive acreage both in NSW and Queensland but the primary focus for us, is the Clarence Moreton Basin. We executed a farm-in back in the middle of 2010 and that's our primary focus at this point in time.
• BBR: And Rohan the company has put out some exploration updates recently, can you give us some details about your drilling?
• $RG:$ Yes we currently have a two well program underway in the Clarence Moreton Basin. I think a lot of people don't realise is the extensive exploration work that's been performed by Metgasco to date in the Basin. This has shown that the Basin is a proven hydrocarbon producing basin, that's why we were able to achieve initial reserve certification without even drilling a well. But we have drilled our first well, Talma, which has showed some very encouraging results and that showed that we have a 240m interval of gassy coals and sandstones from a depth of about 550m down to about 780m. So that was quite a pleasant surprise for us to have gassy sandstones which flowed gas during the well test, at a relatively shallow depth of 540m.
• BBR: Certainly some good results so far. So what's the forward program looking like in 2011?
• RG: Well it's shaping up to be quite a busy year. We're going back and recommencing the Annvale well this weekend which is very close to Metgasco's Casino coal seam gas pilot and their Kingfisher well which is tapping into tight gas sands over a considerable depth. So the Annvale well should be drilled over the next couple of weeks and then we'll take pause, analyse the results from both Annvale and Talma and discuss it with our reserves certifier and plan the forward work program. It's most likely to be three to four further core holes through 2011 and we are also considering a pilot later in 2011. So all shaping up to be quite a busy year for us.
• BBR: Rohan certainly plenty of things happening at Red Sky Energy thanks very much for updating us today on Boardroom Radio.
• $RG:$ Thanks Terry.

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21 January 2011

To listen, copy the following details into your web browser: brr.com.au/event/72848

The presentation details are as follows:

• Red Sky Exploration Update Rohan Gillespie, Managing Director
• Presented by Rohan Gillespie, Managing Director
• Friday, 21 Jan 2011 12:00noon AEST

For further information contact:

Shareholders/Investors:

Mr Rohan Gillespie (Managing Director) Red Sky Energy Limited Tel: +61 (0)438 722 443 Email: info@redskyenergy.com.au

Red Sky Energy is an Australian exploration company focused on coal seam gas. It has extensive acreage in Queensland and New South Wales which could supply into the emerging LNG industry in eastern Australia. The Company has booked reserves in the prospective Clarence Moreton Basin, and has a drilling program underway to earn a 70% interest in four permits. The board of directors and management team have over 100 years of energy industry experience and have been involved in the coal seam gas industry since inception in Australia. Directors of the Company are Gerrit de Nys (Non Executive Chairman), Rohan Gillespie (Managing Director), Guy le Page (Non Executive Director) and Murray Durham (Executive Director).