TORO ENERGY LIMITED — M&A Activity 2007

Oct 18, 2007

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TORO Energy Limited ABN 48 117 127 590 3 Boskenna Avenue Norwood SA 5067 Telephone: +61 8 8362 6677 Facsimile: +61 8 8362 6655

19 October 2007

The Manager Company Announcements Office Australian Stock Exchange Limited Level 4, 20 Bridge Street Sydney NSW 2000

Dear Sir/Madam

Takeover Offer by Toro Energy Ltd (ASX Code: TOE) for Nova Energy Ltd (ASX Code: NEL) Notice of status of defeating conditions

We refer to Toro Energy Ltd (ACN 117 127 590) ( Toro ) off-market takeover bid ( Offer ) for all the issued ordinary shares in Nova Energy Ltd (ACN 111 599 154) ( Nova ).

We enclose, by way of service pursuant to section 630(5)(b) of the Corporations Act 2001 (Cth), notice of the status of the defeating conditions to the offer as required by section 630(3) of the Corporations Act 2001 (Cth).

The takeover offers are currently scheduled to close at 5:00pm (Adelaide, South Australia time) on 26 October 2007.

Yours faithfully

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.......................................................................

Donald Stephens Company Secretary

Attached

1. Section 630(3) notice of status of defeating conditions

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Toro Energy Limited ABN 48 117 127 590

Notice of status of defeating conditions

To: Nova Energy Limited ABN 92 111 599 154 (Nova) And to: ASX Limited

Toro Energy Limited (Toro) has made offers under an off-market takeover bid for all the fully paid ordinary shares in Nova (Offers). The Offers are contained in the bidder’s statement dated 31 August 2007 (“Bidder’s Statement”).

For the purposes of section 630(3) of the Corporations Act 2001 (Cth), Toro gives notice that:

1. on Friday 5 October 2007 Toro declared the Offers and all contracts formed by acceptance of Offers to be free of all conditions contained in section 15.8 of the Bidder’s Statement except for the conditions contained in sections 15.8(a) (Minimum acceptance) and 15.8(b) (Toro shareholder approval) of the Bidder’s Statement;

2. to the knowledge of Toro the condition contained in section 15.8(b) (Toro shareholder approval) of the Bidder’s Statement has been fulfilled;

3. on Thursday 18 October 2007 Toro declared the Offers and all contracts formed by acceptance of Offers to be free of the condition contained in section 15.8(a) (Minimum Acceptance) of the Bidder’s Statement;

4. at the time and date of giving this notice Toro’s voting power in Nova was approximately 84.50% of Nova ordinary shares presently on issue.

Date: 19 October 2007

Yours faithfully

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....................................................................... Donald Stephens Company Secretary