OEX.L Regulatory News (OEX)

6 December 2013

· Facility ensures funding risk in relation to any Cambay cost over-runs are mitigated

Oilex Ltd (ASX: OEX, AIM: OEX, Oilex) is pleased to announce that it is has secured a £7.5 million, three year Equity Financing Facility ("EFF") with Darwin Strategic Limited ("Darwin").

Under the terms of the facility, the Company may, at its discretion, issue placement shares to Darwin at any time over the next 36 months, up to a total aggregate value of £7.5 million.

Any drawdown of the facility and resultant issue of shares is limited to the Company's equity placing capacity under ASX Listing Rule 7.1 and 7.1A.

The EFF with Darwin brings deep institutional links to Oilex's share register. To date, Darwinhas made available in excess of £300 million to AIM listed companies.

In conjunction with the EFF, Oilex has entered into a warrant agreement with Darwin dated 5 December 2013 to subscribe for up to 3,000,000 Ordinary Shares. The warrants, which are unlisted, are exercisable at 15 cents at any time prior to the expiry of 36 months from the date of the warrant agreement.

Managing Director of Oilex, Ron Miller, said

"We are delighted to receive the support of Darwin Strategic. This new £7.5 million facility gives Oilex access to cost effective, efficient financing, as needed and can be used or not used entirely at Oilex's discretion."

"The EFF provided by Darwin allows Oilex to focus efforts on maximising shareholder value through development drilling in our Cambay Asset and through initial exploration activity in the Canning Basin Assets, while considerably reducing future financing risk and costs".

For further information, please contact:

Further details of the Equity Finance Facility

The EFF agreement with Darwin provides Oilex with a facility of up to £7.5 million which (subject to certain limited restrictions) can be drawn down at any time over the next three years. The timing and floor subscription price of any draw down is always under the complete control and sole discretion of Oilex. No penalty fees payable are applicable for not using the facility.

Oilex is under no obligation to make a draw down and may make drawdowns at its discretion, up to the total value of the EFF, by way of issuing subscription notices to Darwin. Following delivery of a subscription notice, Darwin will subscribe and Oilex will allot and issue to Darwin new ordinary shares in Oilex ('Ordinary Shares').

The subscription price for any Ordinary Shares to be subscribed by Darwin will be set with reference to the average of the three lowest closing bid prices in the period of 15 trading days following the issue of the subscription notice.

Oilex is able to specify in each subscription notice a minimum price below which Ordinary Shares will not be issued to Darwin. Oilex will have the right (with the consent of Darwin) to modify that minimum price at any time during the relevant Pricing Period.

The number of Ordinary Shares which may be issued under any individual subscription notice may be up to the lower of 25 per cent of Oilex's issued share capital following completion of the relevant subscription, or four times the average daily trading volume of Oilex's Ordinary Shares over the 15 trading days preceding the issue of the relevant subscription notice. This may be reduced in certain circumstances, including where the minimum price is not maintained.

The maximum amount of an individual subscription notice may not exceed £500,000 without Darwin's permission, such permission not unreasonably withheld. Darwin is entitled to a commission of up to 5 per cent of amounts subscribed but may agree with Oilex in lieu thereof, for the subscription price for the Ordinary Shares to be discounted by 5 per cent.

An over-allotment facility is also available to Oilex, under which the Company may authorise Darwin, at Darwin's discretion, to increase the amount of the draw down by up to the aggregate undrawn amount under the EFF.

Darwin and Oilex may mutually agree at the end of the pricing period to a variation of subscription price. This may allow for a larger subscription via any over-allotment facility authorised by Oilex.

The issuance of a Subscription Notice is conditional upon the satisfaction of certain Subscription Notice Conditions which have been agreed between Darwin and Oilex. Any subscription notice which Oilex may issue will only be valid to the extent that it has the requisite shareholder authority to issue the maximum number of Ordinary Shares that Darwin may be required to subscribe under the relevant subscription notice.

Darwin and Oilex may terminate the EFF agreement if certain conditions are not met.