TALIUS GROUP LIMITED — Capital/Financing Update 2008

Aug 26, 2008

==> picture [195 x 171] intentionally omitted <==

ASX ANNOUNCEMENT

Date 27 August 2008

Acquisition of Additional Interest in Martin and Palo Pinto Counties, Texas

Advance Energy Limited (“AVD”), through its wholly owned US subsidiary Advance Exploration & Production, Inc. (“AEPI”) a Texas corporation, has closed an acquisition to consolidate certain working interests in its Lone Camp, Possum Kingdom and Motherlode Phase I project for US$780,000.

This acquisition is significant in that it takes AEPI’s interest to a majority 100% working interest in each of the three project areas, thereby consolidating the assets and setting a platform for the upcoming divestiture of the Lone Camp and Possum Kingdom properties. This first series of divestitures will complete the previously announced ownership cycle of AVD’s U.S. based oil and gas properties.

The attached sales memorandum on AEPI’s Lone Camp producing property in Palo Pinto County incorporates this additional acquired interest. The sale of this property is expected to close in the 4th Quarter of 2008 and is being marketed by Southern Producer Services, LLC.

Following are additional highlights of the acquisition:

• Additional net production to AEPI of about 100 Mcf/D (equivalent to net annualised revenues of US$300,000).

• The acquisition was funded by an increased Sterling Bank borrowing base of USD$8.6 million – the post-acquisition available but undrawn portion of the borrowing base is USD$450,000.

• Includes additional interest in nineteen producing wells.

• AEPI Midstream, Inc. (a wholly owned subsidiary) now owns 100% of the Lone Camp five mile gathering system.

• Stable, long-life reserves with multiple enhancement opportunities.

• Closing date 21 August 2008 with an effective date of 1 July 2008.

• Economies of scale - AEPI currently has an interest in all properties

• Hibernia Resources, LLC (“Hibernia”) has 13 years drilling, completion, workover and production experience in the County.

ADVANCE ENERGY LIMITED Acquisition of Additional Interest in Martin and Palo Pinto Counties, Texas

FOR FURTHER INFORMATION CONTACT

Mr Anthony Short (Managing Director) or Mr David Ballantyne (Company Secretary) Telephone: 08 9486 1122 Facsimile: 08 9486 1011

ABOUT ADVANCE ENERGY LIMITED

Advance Energy Limited is focused on the acquisition and development of oil and gas producing assets in Texas USA. The company aims to acquire assets with a combination of debt and equity that have current production and cash flow and to enhance production and cash flow through the further development of these assets. Once a property has reached its full productive potential and/or has achieved economic payout to Advance Energy, the Company looks to on sell all or part of its interest. It is the aim of the Company to develop a portfolio of assets which will be developed and traded to maximise returns on funds invested.

ADVANCE ENERGY LIMITED Acquisition of Additional Interest in Martin and Palo Pinto Counties, Texas ASX CODE: AVD www.advanceenergyltd.com.au

pg. 2

==> picture [133 x 10] intentionally omitted <==

==> picture [133 x 10] intentionally omitted <==

==> picture [133 x 10] intentionally omitted <==

==> picture [133 x 10] intentionally omitted <==

==> picture [133 x 10] intentionally omitted <==

==> picture [133 x 11] intentionally omitted <==

==> picture [133 x 10] intentionally omitted <==

==> picture [133 x 10] intentionally omitted <==

==> picture [133 x 10] intentionally omitted <==

==> picture [133 x 10] intentionally omitted <==

==> picture [133 x 10] intentionally omitted <==

Lone Camp Divestiture Package Palo Pinto County, Texas Operator: Hibernia Resources, LLC

==> picture [494 x 496] intentionally omitted <==

----- Start of picture text -----

Carl Carter III
713.728.7913
carl.carter@southernproducerservices.com
----- End of picture text -----

2

Property Highlights:

• Estimated Net Cash Flow (August 2008): $70,000

•523 Gross Mcf/d (362 net Mcf/d) - 3.4 BCFE Produced in the Field

• Stable/Long-Lived Reserve Profile with low associated LOE

• High operated working interest and net revenue interest

• Nine operated wells/One SWD well – capable of handling 1,000 BW/D

• 9-PDP; 5-PDNP; 5-PUD; 1-SWD; 3-Prob (Barnett Shale)

• Current PDP from the Bend Conglomerate Zone (8) and Strawn (1).

• High BTU Content: Approx 1,190 BTU/SCF

•2 stimulation/workover candidates and 3 artificial lift cases

• 1,150 Net Acres (1,279 Gross Acres) – All depths/All Rights

•Five development wells in the Bend Conglomerate (avg. 3,800 ft) of which two – have been staked 3-D Seismic viewing rights included; other targets include Strawn, Pregnant shale, and Marble Falls.

•Five mile, four inch pipe line that discharges into a 20 PSI sales line (Enbridge) capable of moving 8 MMcf/D

•Three Barnett Shale locations within 2.0 miles of existing EOG Barnett Shale Completions

==> picture [418 x 165] intentionally omitted <==

3

==> picture [540 x 221] intentionally omitted <==

==> picture [450 x 300] intentionally omitted <==

4

General Geology

The area lies along the western part of the Fort Worth Basin and is characterized by natural gas and oil accumulations in stratigraphic and structural traps that include the Strawn Sandstones, Bend Conglomerates, Marble Falls Limestone of Pennsylvanian age and the Barnett Shale of the Mississippian age.

The Strawn Sandstones and Bend Conglomerates have porosities as high as 20%, permeabilities as great as 100 millidarcies, and reservoir thicknesses ranging from 5 feet to 30 feet. The Marble Falls Limestone ranges from 200 feet to 300 feet in thickness, with porosity as high as 10% and permeability as high as 20 millidarcies. The Barnett Shale is typically black and very rich in organic material and produces natural gas from naturally occurring fractures.

The Barnett Shale is also a major source of hydrocarbons in the Fort Worth Basin.

Listed in descending stratigraphic order and depth are: the Strawn Sandstones at 800 feet, the Bend Conglomerates at 3,700 feet, the Marble Falls Limestone at 4,100 feet, and the Barnett Shale at 4,400 feet. All of the above horizons are or were productive in the nine (9) producing wells or in the immediate vicinity, and should be considered major objectives.

==> picture [276 x 522] intentionally omitted <==

5

Barnett Shale

• Three horizontal wells recently completed by EOG less than 2.0 miles from the project

• site

• Two penetrations through the Barnett within the Lone Camp asset area

• Approximately 1,150 net acres held by production and lease

• Shallow Barnett Shale TVD of 4,400 ft

• Three Probable Undeveloped locations in the Barnett Shale

• SWD well will be very beneficial in handling post stimulation load water

• •Five mile pipeline and existing infrastructure in place capable of handling Barnett production without additional CAPEX

Barnett Shale Drilling Activity Surrounding Lone Camp With Embedded 5 mile Pipeline

==> picture [470 x 300] intentionally omitted <==

6

Current 2008 Barnet Shale Permits

==> picture [461 x 294] intentionally omitted <==

----- Start of picture text -----

Lone Camp
----- End of picture text -----

Summary

Advance Exploration & Production, Inc. owns a majority 100% working interest with an average 77% base net revenue interest in nine (9) producing natural gas wells, 100% working interest in a salt water disposal well, and 100% of a five (5) mile four-inch low pressure pipeline. These assets have a tremendous amount of upside that can be attained via production enhancement, stimulation, addition of behind pipe reserves and the developmental drilling of both the existing Bend Conglomerate reservoirs and the newly proved Barnett Shale.

The Project, consisting of approximately 1,279 gross acres, is situated in the eastern portion of Palo Pinto County, Texas, approximately 65 miles west of Forth Worth, Texas. There are paved roads to the project and good lease roads within the project zone affording easy access. The terrain is hilly with ground elevations from 800 feet to 900 feet above sea level. No adverse environmental conditions occur on the surface or the subsurface.

Conservative reserve estimates predict over 2.5 BCF of recoverable gas with an associated $8.5 million of PV10. This asset, coupled with Probable Undeveloped reserves in the Barnett Shale of 3 BCF and an additional $7.7 million in PV10, delivers stable cash flow, low mechanical/operational risk and large upside.

7

Additional Information:

Upon execution of the attached Confidentiality Agreement, bidders will be granted access to a virtual data room located at www.hiberniaresources.com.

Hosted on the database are the following files:

• •PHD Win database

• •Historical and Current Production by well

• •Detailed Historical LOS

• •Marketing Contract

• Bids Due: September 5, 2008

• Effective Date: August 1, 2008

• Close Date: October 3, 2008

• •Historical Decline Curves by Well

• •Purchaser Statements

• •Lease Description and Title Opinions

• •Other Property Specific Information

Disclaimer: Advance Exploration and Production, Inc. (“Company”) reserves its rights, which may be exercised in its sole discretion and without prior notice to: (a) reject any and all bids and proposals; (b) accept a proposal or offer other than the highest bid; (c) withdraw any solicitation or modify the transaction process prior to the execution of a Purchase and Sale Agreement (“PSA”); and (d) after execution of the PSA, withdraw under conditions set forth in the PSA. This summary information does not purport to be all-inclusive or to contain all of the information that a prospective acquirer may desire or need to make a final investment decision. No representation or warranty is made by Advance Exploration and Production, Inc., Hibernia Resources, LLC or Southern Producer Services, LLC as to the accuracy or completeness of any information contained herein. Any forward-looking statements and financial projections or estimates are included for informational purposes only; prospective acquirers assume responsibility for confirming statement and figures. Under no circumstances and at no time should any interested party(s) infer or consider that a transaction, or binding commitment to enter into a transaction, involving the properties, pipelines, facilities and related assets of Company has occurred, or will occur, until a PSA with the Company has been properly executed, and then only as per the terms set forth in the PSA.

Contact: Southern Producer Services, LLC Carl Carter 713.728.7913 (Office) 713-504-0963 (Cell) 713-728-7915 (Fax) carl.carter@southernproducerservices.com