TALIUS GROUP LIMITED — Investor Presentation 2012

Sep 9, 2012

Advance Energy Limited (AVD) ADVANCE ENERGY ACQUIRES AND DEVELOPS PRODUCING OIL AND GAS PROPERTIES IN TEXAS

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APRIL 2009

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Project Locations – Texas, USAImportant Statement

• The information contained in this presentation concerning Advance Energy Ltd (Advance) is of general background information about Advance’s activities as at the date of the presentation

• The presentation contains certain statements (including projections, estimates, opinions and forecasts) concerning the anticipated future performance of Advance and its operations (Forward Looking Statements). None of these Forward Looking Statements is a guarantee or representation as to future performance or any other future matters, which will be influenced by a number of factors and subject to various uncertainties and contingencies, many of which will be outside Advance’s control. Accordingly, Advance’s actual profits, performance and prospects could differ substantially from that expressed in or implied by the Forward Looking Statements. Advance does not undertake any obligation to update or release any revisions to these Forward Looking Statements to reflect events or circumstances after today’s date or to reflect the occurrence of unanticipated events.

• This presentation, including opinions set out in it, is based on information compiled or prepared by Advance from sources believed to be reliable, although such information has not been verified in all instances. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in this presentation. To the maximum extent permitted by law, none of Advance, its Directors, employees, advisors or agents, nor any other person, accepts liability for any loss arising from the use of the information contained in this presentation

• This presentation is not an offer, invitation or recommendation to subscribe for securities by Advance. Nor does this presentation constitute advice to investors or potential investors and it should not be relied upon as such as it does not take into account the investment objectives, financial situation or needs of any particular investor. By participating in this presentation or retaining these materials, you acknowledge and represent that you have read, understood and accepted the terms of this Important Statement

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Project Locations – Texas, USAAbou Advance Energy

• ASX Listed: Code AVD

• Historically, a developer and producer in Permian Basin of US

• Changing focus to high margin geographic area with significant undiscovered and under-developed gas reserves

• Acquired Celiastad Pty Ltd whose subsidiary, Epic Energy Ukraine Ltd, has entered a Joint Activity Agreement (JAA) with State-owned ZakhidUkrGeologiya (ZUG)

• Earning a 70% interest in 19km[2] Ortynytska Special Permit (50% postpayback) in Western Ukraine

• Planning re-entry of 3,533m Ortynytska -3 well drilled but not completed in 1993-4

• Field is on-trend with and 5km south of Zaluzhany Field (134 BCF produced from 27 wells up to 1993)

• High gas price (~USD12/MCF) and low royalty environment with significant demand for gas

Capital Structure and Major Holders Project Locations – Texas, USA

Securit Number y

Issued Shares (AVD)[1 ] 911,192,886 Convertin Performance Shares 9 g Listed Convertible Notes (AVDG)[2 ] 6,675,500[3 ]

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• 1 Includes 500m shares to be issued to vendors of Celiastad Pty Ltd

• 2 Mature 31 December 2014 paying interest at 9.5% pa or as shares at 89% of VWAP Convertible on 30 June or 31 December

• 3 Holders of 96% of Listed Convertible Notes have agreed not to convert before 30 June 2013

Top Shareholders Post Acquisition	Top Shareholders Post Acquisition	Top Shareholders Post Acquisition
HSBC Custody Nominees	63,828,124	7.00%
Melbor Pty Ltd	50,000,000	5.49%
Emerald Nominees Pty Ltd	40,000,000	4.39%
Portinfer Capital Ltd	33,000,000	3.62%
Confadent Ltd	25,000,000	2.74%
Nordwand Investments Pty Ltd	25,000,000	2.74%
Bogart Group Ltd	25,000,000	2.74%
Odin Energy Ltd	23,750,000	2.61%
Michael Thomas Musk & Anne Catherine Musk	22,003,000	2.41%

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Project Locations – Texas, USAB ard and Management

Board

• Anthony Short

• Managing Director

• Gordon Sklenka

• Non-Executive Director

• Kip Plankinton

• 20 years finance and board experience in the creation and management of listed mining and O&G companies

Corporate finance specialist with 18 years broking, project

• finance, M & A experience Oil and Gas Lawyer based in US

• Non-Executive Director

Key Management

• Steve Fast

• In-Country Manager

• Doug Jendry

• Technical Consultant

• • Gennady Varitsky

• Local Affairs

• Alistair Jobling Company Secretary

Fluent Russian speaker, 11 years O&G experience in Kazakhstan, Houston and Russia

35 years O & G experience, former Director of Carpathian Resources, Impress Energy

Fmr Soviet Union and Ukraine Navy, Lawyer and Founder of Epic Energy Ukraine Ltd

• 15 years commercial and financial management experience MBA, Grad Dip (App Fin)

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CaProject Locations – Texas, USApathian B sin - Overview

• North Carpathian Basin lies to the north of the collision suture between the African-Apulian and Eurasian Plates

• Foredeep is principal gasbearing zone with multiple horizons to a depth of 5,000m

• USGS[1] estimates 20-175 fields (mean 76) remain to be discovered ranging from 6-400 BCF (mean 20 BCF)

1 US Geological Survey Assessment 1999

Ortynytska Field

Ortynytska Location and Infrastructure Project Locations – Texas, USA

• Located in Western Ukraine, approximately 5km south of Zaluzhany gas/ condensate field and 50km from city of L’viv (pop: 760,000)

• Close to dense network of export pipeline infrastructure

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ProximiProject Locations – Texas, USAy to Zaluzhany Field

• Commenced production 1975 (3 wells) and peaked in 1993 (27 wells)

• Total recoverable reserves estimated at 1 TCF with 135 BCF produced up to 1993 from 13 producing horizons

• Typical LD-15 initial production was ~1.4 mmcfgd, but more recent completion techniques should enable higher IP

• Condensate Gas Ratio (CGR) 7 bbl:mmcfg (API = 41.7°)

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Principal Gas Bearing Horizons Project Locations – Texas, USA

• Principal horizon on license area is LD-15 sand with 2 x lower GA sands

• • Zaluzhany field to north contains up to 13 gas-bearing horizons

• Shallower horizons in license area cut out by Stebnyk Thrust

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Project Locations – Texas, USAOr ynytska-3 Well

• Ortynytska-3 Well was drilled to 3,533m in 1993-4 by ZUG

Ortynytska-3 Wellhead (July 2012)

• Well penetrated the LD-15 sand and operator detected gas at 3,533m but tool stuck and bore was plugged with 80m of cement

• Operator did not complete well due to low gas prices, lack of funds and changing ownership structure but installed wellhead

• Well has been pressure-tested for integrity

• Advance plans to undertake re-entry and to sidetrack from above cement plug

• Drill pad and access road complete

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Project Locations – Texas, USAOrtynytska-3 Well Profile

• Well was drilled almost 20 years ago in a lowtechnology/ budget environment

• TD for Ortynytska-3 was 5,500m with the intention of testing LD-15 and lower GA sands

• Well was sidetracked from 3,429m to 3,533m before mud weight dropped to 11ppg indicating gas kick

• Average porosity 14%

• Current completion techniques expected to make light work of challenges from 20 years ago

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Proposed 2D Seismic Shoot Project Locations – Texas, USA

Advance to conduct 20km 2D seismic shoot designed by ISIS Petroleum Consultants. Expected to define sidetrack and facilitate reserve report

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Why is the Ukrainian Gas Price so high? Project Locations – Texas, USA

• Although a significant gas producer, Ukraine imports 72% of its domestic gas requirements, primarily from Russia

• Russia supplies Europe with 40% of its gas imports, most of which transit Ukraine, but is looking to reduce its dependence on this route by constructing gas pipelines to the north and south

• In January 2009, Russia froze supplies to Europe for three weeks accusing Ukraine of siphoning off gas in transit.

• Under an agreement, Ukraine executed a 10 year ‘take or pay’ agreement to purchase to 52 bcm of gas per annum from Gazprom at an agreed price formula

• The price formula relates to the price of oil and has increased from around USD300/thousand cubic metres (MCM) is currently USD425/MCM (approx USD12/mcf)

• Ukraine is seeking to reduce either the price it pays or the volume it is required to purchase

• Russia may be willing to revise the agreement, but is likely to require Ukraine to make strategic concessions such as allowing Gazprom to take over the transit pipelines, entering a Russian-led customs union or granting Russia an extension on the lease of its Black Sea port at Sevastopol which is due to expire in 2017

• Prices are likely to stay at these levels for the forseeable future

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Capital Raising and Use of Funds Project Locations – Texas, USA

• Advance to offer 600m shares at $0.005 (0.5 cents) to raise $3m under Prospectus

• Approved by shareholders at General Meeting on 22 July 2012

• Holders of Convertible Notes can only convert on 30 June and 31 December and largest holders have agreed to defer conversion until at least 30 June 2013

Use of Funds	A$
1. Payment to Vendor of Epic Energy	50,000
2. Expenditure with respect to Ortynytska Project including:
a)Shoot & interpret 2D Seismic	335,000
b)Re-entryDesign and sitepreparation	150,000
c)Re-entryof Ortynytska-3 well	1,500,000
d)Connection togaspipeline	100,000
e)Workprogram contingency	193,658
f) Ukraine Office Expenses and Technical Team(9	150,000
g)Travel to Ukraine and accommodation	60,000
3. Perth Office expenses and fees(9 months)	250,000
4. Costs of Offer	211,342
TOTAL	3,000,000

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Project Locations – Texas, USAWhy Ukraine?

• Established gas province with several western companies, including Hawkley Oil & Gas (HOG) and Aleator Energy (AWD) successfully operating

• Significant domestic and international demand with excellent pipeline infrastructure

• High gas prices (~USD12/mcf) and favourable fiscal regime with royalties >USD1/mcf

• Reducing corporate tax- 19% from 1 Jan 2013 and 16% from 1 Jan 2014

• AVD has established excellent in-country relationships through the previous owner of Epic and Advance’s in-country manager, Steve Fast

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Project Locations – Texas, USA

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For further information:

Anthony Short Managing Director ashort@advanceenergyltd.com.au

Suite 2, 16 Ord Street West Perth WA 6005 (08) 9429 2900

www.advanceenergyltd.com.au

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