ZIMI LIMITED — Interim / Quarterly Report 2012

Jul 30, 2012

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WHL Energy Ltd ABN: 25 113 326 524 Level 2, 22 Delhi Street West Perth, WA 6005 P.O. Box 1042, West Perth Western Australia 6872 T: +61 8 6500 0271 F: +61 8 9321 5212 www.whlenergy.com

ASX/MEDIA RELEASE 31 July 2012

WHL ENERGY JUNE 2012 QUARTERLY ACTIVITIES REPORT

Highlights:

• Awarded 100% of Exploration Permit VIC/P67 containing the La Bella gas field discovery (Otway Basin, Australia)

• Seychelles exploration acreage (100%) progressing

• Finalisation of sale of US assets allows focus on core strategy

• Appointment of highly experienced Chairman and Non-Executive Director

Australian energy company WHL Energy Limited ( ASX: WHN ) (“ WHL Energy ” or “ the Company ”) is pleased to report on its activities and operations for the quarter ended 30 June 2012.

AUSTRALIA, SEYCHELLES AND NEW VENTURES

The key event for the quarter was the formal award of VIC/P67 to WHL Energy (100%). VIC/P67 contains the discovered La Bella gas field and substantial near field exploration potential. WHL Energy considers VIC/P67 to be a valuable asset that provides a low risk addition to the Company’s exploration portfolio.

WHL Energy’s portfolio now comprises two exploration blocks in prospective regions in Australia and a large exploration block in the Seychelles off the east coast of Africa.

Australia

VIC/P67 – 100% (La Bella), Otway Basin, Offshore South East Australia

On 4 May 2012, the Company was formally awarded Exploration Permit VIC/P67 by the Commonwealth – Victoria Offshore Petroleum Joint Authority. VIC/P67 contains the La Bella gas field discovery and several other nearby gas prospects and leads. It is situated in close proximity to a number of commercial gas producing fields operated by Santos, Origin and BHP Billiton.

The now gazetted VIC/P67 (previously 2011 Australian Acreage Release block V11-2) lies in the offshore Otway Basin, approximately 200 km WSW of Melbourne off the Victorian coastline. WHL Energy holds 100% equity in the Exploration Permit.

The work program commitments consist of:

• Year 1 - 1000km Reprocessing of 1000km 2D seismic and studies

• Year 2 - 811 sq. km. 3D seismic acquisition, processing and studies

• Year 3 - Drill 2 exploration wells, acquire 650km of 2D seismic, processing and studies

The 3 year discretionary, secondary work program commitment consists of studies and a well in Year 5.

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VIC/P67
Source: DRET Acreage Release
Figure 1: VIC/P67 location.
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The undeveloped La Bella gas field in the block is assessed to contain 2C Contingent Resources of 158 PJ by WHL Energy. Work done by WHL Energy indicates that the development of the La Bella prospect through existing, nearby infrastructure is robust. As such, the VIC/P67 permit received strong industry attention during the bid round and the Company expects this interest to continue. The forward work program is focused on the commercialisation of La Bella (the Company is targeting first gas by early 2016), and maturation of the exploration prospects.

To this end, planning for the acquisition and processing of a 3D seismic survey, which will cover the La Bella field and nearby exploration prospects, has commenced and it is planned for the Year 2 3D seismic acquisition program to be advanced.

The Company has commenced discussions with a number of parties to fund the forward work program on suitable commercial terms, subject to the retention of material equity in the block. The Company’s Managing Director, Mr Steve Noske, commented: “The Company is aware of the considerable interest of VIC/P67 to the oil and gas industry given its prospectivity and proximity to existing development infrastructure, including the Santos operated Casino development, the Origin operated Otway gas project, the BHPB operated Minerva development and TRU Energy’s Iona gas plant.

WHL Energy identified and targeted VIC/P67 in the 2011 Australian Acreage Release because of the contingent resources in La Bella, its exploration upside potential and its view of the future gas market demands of the Australian East Coast. The Company views the award of this block as a significant step in the establishment of a quality exploration portfolio to underpin the long term growth of WHL Energy.”

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Figure 2: La Bella gas field and adjacent gas projects.

VIC/P67 also contains a number of exploration leads, with the relatively low risk prospects present at Highlander and West La Bella providing additional tie-back opportunities to a potential La Bella development. Larger potential leads, at higher risk, are also present within the La Bella area, including the Lowlander Leads that offer additional significant upside potential.

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Figure 3: Near Top Waare Sandstone Depth Structure showing La Bella Gas field and adjacent Prospects and Leads.

	2C Contingent Resource	2C Contingent Resource	2C Contingent Resource
	Gas(PJ)	Condensate(MMstb)
La Bella	158	1.2
Exploration Leads
Highlander(V11-2)	172	0.8
Lowlander A	145	1.2
Mussel Updip (V11-2)	21	0.1
Lowlander B	215	1.3
West La Bella	51	0.3
Unrisked Exploration	604	3.7
Unrisked Total	762	4.9

Table 1: WHL Energy assessment: 2C Contingent Resources and Prospective Resources La Bella gas field and adjacent Prospects and Leads.

WA-460-P – 33.3%, Carnarvon Basin, Offshore West Australia (Palta Prospect)

As planned, minimal activities were undertaken in WA-460-P by the Operator, Strike Energy. The major work program obligation consists of a small 3D seismic survey, in 2014. The main activity in the block is monitoring the adjacent Shell operated block, where the Palta prospect will be drilled via the Palta-1 well. WHL Energy understands that the drilling of Palta-1 by Shell in the adjacent WA-384-P with the deep water rig Noble Clyde Boudreaux continues to be on schedule for later this year (2012). The Company looks forward to the drilling of this prospect by Shell which is interpreted to contain 2.5 TCF (100% basis) in WHL Energy’s permit WA-460-P.

Seychelles Exploration – 100%

Since the acquisition of the Seychelles acreage, the Company has received and hosted a number of large oil and gas companies as part of a farm-out campaign. This activity continues with the Company having ongoing discussions with multiple parties.

Despite strong interest from the oil and gas industry, the early farm-out campaign that was based on early stage geological and geophysical studies has not yet been concluded with a partner on suitable commercial terms.

WHL Energy continues to develop the prospectivity of the acreage and has undertaken considerable geological and geophysical studies to assist with optimising the potential areas for further seismic to be acquired and processed.

During the quarter, the Company continued to engage with the Seychelles Government in relation to rationalising the obligatory exploration work commitments in the block and related matters.

Steve Noske commented: “Whilst we are disappointed that a farm-out has not been achieved so far, our technical work continues to reinforce the potential of the Seychelles. We remain in ongoing discussions with potential partners, the Company’s objectives for the Seychelles have not changed and we will continue to develop the exploration prospects in the Seychelles as per our original timetable. Importantly our work with the Seychelles Government to improve the work program is nearing conclusion and we expect this work to further enhance the attractiveness of the Seychelles acreage as we continue with the farm-out campaign.”

New Ventures - Africa

The Company has completed an internal review of the region and has high graded a number of areas of interest in both East and West Africa.

A range of opportunities were reviewed in the quarter, but were declined due to either technical or commercial reasons. The Company will continue to identify and review suitable opportunities.

CORPORATE

Appointment of Non-Executive Chairman – Trevor Benson

On the 4 June 2012 the Company appointed Mr Trevor Benson as its Non-Executive Chairman. Mr Benson has been a valuable Non-Executive Director at WHL Energy since December 2011.

Mr Benson has over 25 years’ experience in investment banking and stockbroking. He has previously held the positions of Director, Corporate Advisory at Argonaut Limited and Head of Corporate Finance and Operations at Tolhurst InterFinancial. His cross-border experience includes advising companies on M&A, restructuring and listing on overseas stock exchanges.

Mr Benson’s appointment follows Mr John Chandler’s decision to step down in light of his appointment to the roles of Professor in Law at the University of Western Australia and Director for the Centre for Mining, Energy and Natural Resources Law.

Appointment of Non-Executive Director – Dr Keiran Wulff

During the quarter the Company appointed Dr Keiran Wulff as a Non-Executive Director. Dr Wulff has strong technical and managerial experience in the oil and gas industry spanning 28 years.

His previous experience has involved a number of senior roles in the oil and gas industry. This includes a period of 15 years with ASX-listed Oil Search Limited, where his roles included Chief Operating Officer and a responsibility for its New Business in the Middle East and North Africa. His extensive career also consists of technical, operational and managerial roles in Australia, South East Asia, the Middle East, Northern and Central Africa, along with developing strategic business relationships with foreign governments. Dr Wulff is currently also the Executive Chairman of Aligned Energy Limited.

CASH POSITION

The Company had $8.177 million at the end of the quarter following the successful placement raising $7.940 million previously announced on 5 April 2012. WHL Energy completed the placement of 180,450,000 ordinary shares at 4.4 cents per share to Australian and International institutions and sophisticated and professional investors.

The Placement was not subject to shareholder approval as it fell within the Company’s 15% capacity under ASX Listing Rule 7.1.

US OIL AND GAS PROJECTS

During the Quarter the Company accepted an offer for the sale of its last US asset, being the combined McCune County and Girard Gas projects in Kansas. The transaction for all the equity in WHL Energy (Midcon) LLC was completed for $0.091 million and importantly released the Company from any potential costs in terms of environmental and abandonment liabilities.

Following the final settlement in June 2012, the Company is in the process of dissolving the US Corporate Entities.

Ends.

FURTHER INFORMATION Shareholders/Investors: Media contact: Steve Noske Colin Hay WHL Energy Ltd Professional Public Relations T: +61 8 6500 0271 T: +61 8 9388 0944 E: contact@whlenergy.com E: colin.hay@ppr.com.au

Competent Person Statement

The summary information contained in this ASX release relating to VIC/P67 has been compiled by WHL Energy Limited full time Exploration Manager Mr Matt Fittall. He is a Geologist (BSc (Hons) Geology) of more than 28 years, practicing in Petroleum Geology. Mr Fittall has consented in writing to the inclusion of the information in the form and context in which it appears.

About WHL Energy Limited

ASX-listed WHL Energy Ltd (ASX: WHN) is an oil and gas exploration company focussed on East Africa.

The Company’s “flagship” project is its 21,426 km[2] exploration area offshore Seychelles, owned 100% by WHL Energy. A highly material exploration portfolio and new exploration concepts are being matured in the acreage.

WHL Energy holds 100% equity in Exploration Permit VIC/P67 in the offshore Otway Basin, approximately 200 km WSW of Melbourne off the Victorian coastline. VIC/P67 contains the undeveloped La Bella gas field and several nearby exploration prospects, in proximity to existing neighbouring producing gas fields.

The Company also holds 33.33% equity in exploration permit WA-460-P, in the offshore Southern Carnarvon Basin, which contains an extension of the very large Palta Prospect. A Shell led Joint Venture is expected to drill Palta-1 in the adjacent block, during the second half of 2012.

The Company is also actively investigating growth opportunities in the African region.