OEX.L Regulatory News (OEX)

3 September 2012

Oilex Ltd ("Oilex" ASX: OEX, AIM: OEX) is pleased to advise that its fully underwritten pro rata renounceable entitlement offer (the "Entitlement Offer"), which closed on Thursday 30 August, has been well supported.

Of the 101,329,954 ordinary shares available under the Entitlement Offer, the total number subscribed by shareholders was 64,756,589 (the "Entitlement Offer Shares"), equating to 63.9% take up of the entitlements on offer. The Company has notified the Underwriter of the resulting overall shortfall of 36,573,365 ordinary shares (the "Shortfall Shares") which are being taken up by the Underwriter and sub-underwriters to the Entitlement Offer.

The Entitlement Offer, as set out in the Company's Prospectus dated 6 August 2012, will raise approximately A$7.09 million (GBP 4.75 million) before expenses. As previously advised, the funds from the capital raising will be used for;

·; Cambay offset well drilling, engineering design, subsurface studies and field operations and production testing; and

·; general working capital and costs of the offer.

Under the Entitlement Offer the Company is granting approximately 50.6 million options exercisable at A$0.15 at any time before 7 September 2015 ("New Options") to allottees of the Entitlement Offer Shares and Shortfall Shares on the basis on 1 New Option for every 2 Ordinary Shares allotted.

The issue of Entitlement Offer Shares, the Shortfall Shares and the New Options is expected to occur on 7 September 2012.

Comment

Oilex Ltd Managing Director, Dr Bruce McCarthy commented; "We are pleased with the strong support from our shareholders for the Entitlement Offer.

The funds that have been raised will enable the Company to drill an offset well to complete its assessment of the commercial viability of the Cambay project X and Y zone tight reservoirs. It is anticipated that a successful result from this high impact well will be a major milestone for the Company to making the transition to become a significant unconventional energy producer in India.

The Cambay project onshore Gujarat in northwest India is a major unconventional energy growth opportunity where the presence of oil and gas has already been confirmed and which has the potential to generate near-term production and cash flows.

We believe the investment opportunity at the Cambay Project is substantial with independently assessed Unrisked Contingent Resources (2C net to Oilex) of 223 billion cubic feet of gas and 37 million barrels of oil from just the two uppermost zones of a very thick hydrocarbon bearing section. The deeper zones have been independently assessed to hold a very substantial Prospective Resource, highlighting additional potential and long-term growth prospects for Oilex."

Admission to trading on AIM and Shares in Issue

Application will be made for the total amount of 101,329,954 Ordinary Shares issued pursuant to the Entitlement Offer to be admitted to trading on the AIM Market which is expected to occur on 7 September 2012.

Following the Entitlement Offer, the Company will have 354,654,839 Ordinary Shares on issue.

Interests of the directors

The directors of the Company that have taken up shares under the Entitlement Offer are set out in the table below along with their interests in the securities of the Company.

(1) Dr McCarthy's interests are held indirectly as follows: 1,150,000 shares and 3,000,000 options held by B H McCarthy ATF McCarthy Family Superannuation Fund and 1,000,000 options held by Karuah Pastoral Company Pty Ltd. In addition the 119,132 shares held by Rose McCarthy are required under the AIM Rules to be disclosed as a related party holding.

(2) Mr Barnes' interests are 600,000 shares and 4,000,000 options held in his own name and 198,971 held by Ad Valorem Resources Consulting Pty Ltd.

(3) Mr Clube's interests are 1,500,000 options held in his own name, 52,174 shares held by the Clube Superannuation Fund and 2,000,000 options held by E Loader.

(4) Mr Cozijn's interests are held indirectly as follows: 1,000,000 shares held by Diplomat Holdings Pty Ltd ATF Supermax RF and 1,000,000 options held by Diplomat Holdings Pty Ltd ATF Maximillia Cozijn Trust.

(5) Mr Miller's interests are held indirectly as follows: 700,000 shares held by Miramar Superannuation Pty Ltd, 1,660,000 shares held by Miramar Superannuation Fund Pty Ltd, 164,436 shares held by the Miller Family Trust, 750,000 options held by Ematvil Pty Ltd as trustee for the Miller Family Trust and 1,500,000 options held by La Jolla Enterprises Pty Ltd.

(6) Includes New Options granted pursuant to the Entitlement Offer.

For further information, please contact:

This announcement (the "Announcement"), and the information contained herein, is not for publication, release or distribution, in whole or in part, directly or indirectly, in or into the United States, Canada or Japan or any other jurisdiction in which such publication or distribution would be unlawful. This Announcement is for information purposes only and does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire shares in the capital of the Company in the United States, Canada or Japan or any other jurisdiction in which such an offer or solicitation is unlawful.

The shares and options in the Company referred to in this Announcement have not been and will not be registered under the United States Securities Act of 1933, as amended ("Securities Act") and may not be offered, sold or transferred, directly or indirectly, except in transactions exempt from, or not subject to, the registration requirements of the Securities Act and the securities laws of any state or other jurisdiction of the United States. There will be no public offer of securities of the Company in the United States or elsewhere.

There will be no public offer of securities of the Company in the UK, and securities will only be offered in the UK: (i) in reliance on exemptions to the Financial Services and Markets Act 2000 (United Kingdom); and (ii) to persons who are of a kind described in Article 43(2) (members and creditors of certain bodies corporate) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005.

This Announcement has been issued by, and is the sole responsibility of, the Company.

RFC Ambrian Limited, which is authorised and regulated by the Financial Services Authority in the United Kingdom (the "FSA"), is acting for the Company and no one else in connection with the Entitlement Offer and will not be responsible to any other person for providing the protections afforded to its clients or for providing advice in relation to the subject matter of this announcement.

N+1 Brewin LLP, which is authorised and regulated by the FSA, is acting for the Company and no one else in connection with the Entitlement Offer and will not be responsible to any other person for providing the protections afforded to its clients or for providing advice in relation to the subject matter of this announcement.

No representation or warranty express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by RFC Ambrian Limited or N+1 Brewin LLP or by any of its affiliates or agents as to or in relation to the accuracy or completeness of this Announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefore is expressly disclaimed.

The distribution of this Announcement and the offering of securities under the Entitlement Offer in certain jurisdictions may be restricted by law. No action has been taken by the Company that would permit an offering of such securities or possession or distribution of this Announcement or any other offering or publicity material relating to such shares in any jurisdiction where action for that purpose is required. Persons into whose possession this Announcement comes are required by the Company to inform themselves about, and to observe, such restrictions. This document may include forward-looking statements. Forward-looking statements include, but are not necessarily limited to, statements concerning Oilex Ltd's planned exploration program and other statements that are not historic facts. When used in this document, the words such as "could", "plan", "estimate" "expect", "intend", "may", "potential", "should" and similar expressions are forward-looking statements. Although Oilex Ltd believes that its expectations reflected in these statements are reasonable, such statements involve risks and uncertainties, and no assurance can be given that actual results will be consistent with these forward-looking statements.