TALIUS GROUP LIMITED — Capital/Financing Update 2012

Sep 25, 2012

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ASX ANNOUNCEMENT

26 September 2012

Producing oil asset in Ukraine with potential for significant resources

Highlights

• Advance obtains preliminary information on a second Ukrainian asset - the 64km[2 ] Balochnya license in the Eastern Crimea

• The Balochnya Project has a recently completed access road, hosts two producing oil wells and is close to oil and gas pipelines

• 16 lines of 2D seismic have been shot on Balochnya and preliminary estimates indicate the potential for significant resources

• Advance intends to engage an independent petroleum consultant to prepare a resource assessment of all its Ukrainian interests

Additional Ukrainian Asset – Oil Production in Crimea

As reported in its announcement dated 4 September 2012, Advance has discovered that its newly acquired subsidiary, Epic Energy Ukraine Ltd (Epic), also has interests in a second Ukrainian asset. Epic has previously executed Joint Activity Agreements (JAAs) with KrymGeologiya, the state geological body of the Autonomous Republic of Crimea, to fund the development of the Balochnya oil field which is held by a 64km[2] production license. Although technically in default of its JAA commitments, Advance has been advised that the license remains in good standing and that the JAA partner is willing to re-activate the JAAs as and when Advance has acquired sufficient information about the project.

The License is located in the Kerch Peninsula in the eastern part of the Crimean Peninsula. The Kerch Peninsula is in the Tertiary Foredeep of the Azov-Kuban Basin and is a prolific area of oil and gas discovery and production. The US Geological Survey estimates that the mean undiscovered resources of the Foredeep and Foreland slope of the Azov-Kuban Basin are 218 million barrels.

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ADVANCE ENERGY LIMITED Further Information on Second Ukrainian Asset ASX CODE: AVD www.advanceenergyltd.com.au

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While only a modest amount of information has so far been analysed, the interest in a producing oil asset in the established Crimean energy precinct could provide diversity across the proven oil and gas windows in Ukraine.

Figure 1: Location of Balochnya License in Eastern Crimea

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Exploration and Production History

At least 16 lines of 2D seismic appear to have been acquired over the structure (see Figure 2 below); however, Advance has yet to obtain the primary data or any interpretation. The current producing horizon is very shallow and Advance is optimistic that, once the seismic data has been secured and re-interpreted by a suitably qualified team, further horizons will be identified.

Since 2008, two exploration wells have been drilled on the permit. The Balochnya-1 well was drilled in 2008 to a depth of approximately 1,200m and produced oil at an average daily flow rate of between 30-41 BOPD from a 2m interval at 970m. A second well, Balochnya-2 was then drilled and began production in October 2010. Limited information is currently available on this well.

ADVANCE ENERGY LIMITED Further Information on Second Ukrainian Asset ASX CODE: AVD www.advanceenergyltd.com.au

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Figure 2: Balochnya Structure and Seismic Coverage

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Advance aims to obtain all available technical information on the Balochnya project, including seismic data, so that it can engage an independent petroleum consultant to undertake an independent resource evaluation of the project.

FOR FURTHER INFORMATION CONTACT

Mr Anthony Short (Managing Director) Telephone: 08 9429 2900 Facsimile: 08 9486 1011

ADVANCE ENERGY LIMITED Further Information on Second Ukrainian Asset ASX CODE: AVD www.advanceenergyltd.com.au