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With the share dillution I think this share price could drop. Also with the sale of the fluids business profit likely going to pay for the Senergy costs and the FPSO not sailed yet.

Extraordinary General Meeting The Conditional Placing is conditional upon, inter alia, shareholder approval to be sought at an extraordinary general meeting of the Company which is proposed to be held on or around 20 February 2012 and Admission. It is proposed that a circular be sent to Shareholders incorporating a notice of extraordinary general meeting, proposed to be held at the offices of Watson, Farley & Williams LLP, 15 Appold Street, London EC2A 2HB. Irrevocable Undertakings Each of the Directors (and their connected persons) have, and Henderson Global Investors Limited and Gartmore Investment Limited as the discretionary investment manager of Henderson have together, given irrevocable undertakings to vote in favour of the Resolutions in respect of their own beneficial holdings of Ordinary Shares, representing, in aggregate, 35.4 per cent. of the issued share capital of the Company as it is proposed to be at the time of the extraordinary general meeting. Haydn Gardner, Chief Executive of Lochard said: “We are delighted to have received the support of investors for this oversubscribed placing which further demonstrates the Company’s potential and will enable the Directors to see Lochard through to becoming an oil producer. We look forward to updating shareholders on progress in the Athena field in due course.” Contact: Lochard Energy Group Plc Haydn Gardner, CEO +61 8 9335 8848 finnCap Limited Sarah Wharry/ Christopher Raggett +44 20 7220 0500 FTI Consulting Edward Westropp/Alex Beagley +44 20 7269 7207 1.1.1 PLACING STATISTICS Number of Existing Ordinary Shares 249,579,902 Number of Firm Placing Shares 24,958,000 Number of Conditional Placing Shares 23,327,714 Total number of Placing Shares 48,285,714 Enlarged Issued Share Capital following the Placing 297,865,616 Issue Price 7p Estimated net proceeds of the Placing receivable by the Company £3.15 million Number of Placing Shares as a percentage of the Enlarged Issued Share Capital 16.21 per cent. Market capitalisation of the Company at Admission at the Issue Price £20.85 million 1.1.2 EXPECTED TIMETABLE OF PRINCIPAL EVENTS Admission of the Firm Placing Shares to trading on AIM 8.00 am on 30 January 2012 Latest time and date for receipt of Forms of Proxy for the Extraordinary General Meeting 11.00 am on 16 February 2012 Latest time and date for receipt of CDI Notice of Direction Form for the Extraordinary General Meeting 11.00 am (Perth, Western Australia time) on 15 February 2012 Date and time of Extraordinary General Meeting 11.00 am on 20 February 2012 Admission of the Conditional Placing Shares to trading on AIM 8.00am on 21 February 2012 Note: Each of the times and dates above are indicative only and subject to change without consultation. If any of the above times and/or dates change, the revised times and/or dates will be notified to Shareholders by announcement on a Regulatory Information Se

Use of Proceeds As part of Lochard’s continued development of its assets, the Company intends to use £2.1 million of the net proceeds of the Placing to cover costs in connection with the Athena development, which is close to initial oil revenue. As announced on 15 December 2011, judgment has been handed down in favour of Senergy UK Limited in respect of their litigation with Zeus. Senergy has stated that it has litigation costs of approximately £600,000. The treatment of costs in this case could be unusual with the effect that ultimately the AUS$3.6m to AUS$12.2m range could be inclusive of costs rather than being net of costs. For the present Senergy has requested Zeus agree to a partial interim award for costs in the sum of approximately £300,000, which may be payable in February 2012. Zeus has stated that all questions of costs should be deferred until after the final determination of damages. No application has yet been made to the court concerning payment of costs. The parties will either agree a position or the court will decide when requested to do so. Accordingly, approximately £600,000 of the net proceeds of the Placing are intended to be used by the Company to settle certain costs associated with the Senergy litigation. The remainder is intended to be used to pay for the costs of the issue and for general overheads and working capital. Related Party Transaction Henderson Global Investors (“Henderson”) is subscribing for 20,000,000 Placing Shares in the Placing which is considered a related party transaction pursuant to the AIM Rules because Henderson is a significant shareholder in the Company. Henderson currently holds approximately 26.7% of the Company. The Independent Directors, being Haydn Gardner, Lincoln McCrabb, Michael Rose and Peter Youd, having consulted with the Company’s nominated adviser, finnCap, consider that the subscription for Placing Shares by Henderson is fair and reasonable insofar as the Shareholders are concerned. In advising the Independent Directors, finnCap has relied upon their commercial assessment. Admission Application has been made for the admission of both the Firm Placing Shares and Conditional Placing Shares to trading on the AIM market operated by the London Stock Exchange (“AIM”) (“Admission”) and will be made to trading on ASX Limited (“ASX”). It is expected that Admission will be effective and dealings in the Firm Placing Shares will commence on AIM on 30 January 2012. It is expected that, subject to Shareholder approval, Admission of the Conditional Placing Shares will become effective and dealings in the Conditional Placing Shares will commence on AIM on or around 21 February 2012.

Lochard Energy Group plc (“Lochard” or the “Company”) Placing to raise £3.38 million Lochard announces that it has raised £3.38 million, before expenses, by way of an oversubscribed placing (the “Placing”) by finnCap, as agent for the Company, for new ordinary shares of 5 pence each in the capital of the Company (the “Ordinary Shares”) at a price of 7 pence per Ordinary Share (the “Issue Price”). The Placing is being undertaken in two tranches, namely (i) a firm placing (the “Firm Placing”) of 24,958,000 new Ordinary Shares (the “Firm Placing Shares”) at the Issue Price, raising £1.747 million, and, (ii) a conditional placing (the “Conditional Placing”) of a further 23,327,714 new Ordinary Shares (the “Conditional Placing Shares” and, together with the Firm Placing Shares, the “Placing Shares”) at the Issue Price raising £1.633 million. The Firm Placing has been arranged using the authority granted to Directors at the Company’s Annual General Meeting held on 16 December 2011. The Conditional Placing remains subject to approval of the shareholders of the Company (the “Shareholders”) at an extraordinary general meeting which is proposed to be convened on or around 20 February 2012, and in respect of which a circular and corresponding notice is to be circulated. Background to and reasons for the Placing: Athena Field Development Lochard has a net 10% interest in the Athena filed, which is operated by Ithaca Energy Inc., through its wholly owned subsidiary Zeus Petroleum Limited (“Zeus”). The Athena field is situated in block 14/18b in the Outer Moray Firth area of the UKCS, lying approximately 18 kilometres west of the Claymore and Scapa fields and the associated production facilities. The field has been evaluated by Sproule Associates to contain 2P reserves (gross) of 24.4 million barrels of oil (2.4 net to Lochard). The initial rate from the field is anticipated to be approximately 22,000 barrels of oil per day gross (2,200 net to Lochard) with first production targeted for April 2012. The field will be produced through the BW Athena FPSO vessel which is nearing the end of a fast track modification and recertification in Dubai. The FPSO modifications are now essentially complete and the vessel is in the final stages of commissioning, the majority of subsea elements at the field have been installed and all rig based activities have been completed with all wells ready for production on final hook up. A final element of the costs associated with the Athena field development of approximately AUS$ 3.4 million are due for payment by Lochard prior to revenues from the field expected to commence in April.

On 8 April 2010, Lochard Energy Group Plc announced that Senergy UK Limited had brought proceedings in the High Court in London against Zeus Petroleum Limited, a wholly owned subsidiary and holder of the interest in the Athena oilfield. The proceedings in this case have now been heard and judgment for liability has been handed down in Senergy’s favour. The court has still not ruled on the amount of costs or damages that will be payable and a further hearing will be required in early 2012 to determine the amount of costs. There is likely to be a period where further evidence will be submitted prior to a final hearing on the amount of damages the date for which will be set by the court. The Company estimates that subject to any successful appeal by Zeus the damages payable by Zeus could range between $3.5m and $12.2 m plus costs and interest. The damages payable will be paid from the cashflow resulting from the Athena production, due to come on stream in Q1 2012, and depending on timing, from the earn out payment due from the sale of the Company’s fluids business. The Company has previously announced that the maximum residual earn out figure is A$19.25 million. Lochard is considering its options in respect of this decision (including whether Zeus will appeal the judgment). The Company will make further announcements in due course.

Hi, whats the court case regarding? This share is a certain buy. Lochard are looking at production revenues of 10% of Athena field development. 22,000 bbls a day of which 10% to Lochard (2,200 x say $50 will be $110,00 a day profit, x 365 = $40 million revenue). This share looks a good bet for the next year.