OEX.L Regulatory News (OEX)

2 August 2012

Oilex Announces a$7.09 MILLION (£4.75 MILLION) Capital raising TO DRILL CAMBAY OFFSET WELL

Oilex Ltd ("Oilex" ASX: OEX, AIM: OEX) is pleased to announce a fully underwritten pro-rata renounceable entitlement offer to raise approximately A$7.09 million (£4.75 million) before expenses (the "Entitlement Offer").

The proceeds raised will assist in funding the drilling of a high impact offset well and conducting a flow test of the Cambay "Tight" Eocene Reservoirs near the Cambay-76H well, onshore Gujarat in India, and for general working capital purposes.

Previously Netherland Sewell and Associates Inc. had completed an independent assessment of Cambay Eocene reservoirs determining Unrisked Contingent Resources (2C net Oilex) of 223 BCF gas and 37 MMBO oil and substantial Prospective Resource upside in deeper zones. It is anticipated that the offset well will obtain critical data to demonstrate the commercial viability of the Cambay "Tight" X and Y zone reservoirs.

Capital Raising Overview

Under the Entitlement Offer, eligible shareholders are entitled to acquire 2 new ordinary shares for every 5 ordinary shares held at a discounted price of A$0.07 or £0.046 per ordinary share to raise approximately A$7.09 million (£4.75 million) before expenses.

All participants in the Entitlement Offer will also receive one attaching option exercisable at A$0.15 at any time before 7 September 2015, for every two new shares subscribed for. It is proposed that the underwriter/sub-underwriters to the Entitlement Offer receive one option on the same terms, for every new share underwritten, subject to obtaining shareholder approval.

The Entitlement Offer is renounceable and it is anticipated that eligible shareholders may sell their rights on the Australian Securities Exchange ("ASX") or the AIM Market operated by the London Stock Exchange ("AIM"). The Directors intend to participate in the Entitlement Offer in respect of their entitlements.

The Prospectus is anticipated to be lodged with ASIC on or about 6 August 2012 and dispatched to eligible shareholders on 16 August 2012. The RECORD DATE for the Entitlement Offer will be 15 August 2012.

Leading Australian broking firm Patersons Securities Limited has been appointed as Lead Manager and Underwriter to the Entitlement Offer, with RFC Ambrian Limited and N+1 Brewin acting as the UK agents.

Comment

Oilex's Managing Director, Dr Bruce McCarthy, said,

"The results to date from the Cambay-76H well that was drilled and fracture stimulated last year has given the Company confidence that the Cambay Tight Reservoir Project will be successfully developed. While mechanical problems were experienced during milling operations on this proof of concept well, precluding a flow test, these have not downgraded the value of the project in any way.

The funds that will be raised will enable the Company to drill an offset well to obtain the remaining reservoir flow data that it requires in order to bring the proof-of-concept phase to a conclusion and assess the commercial viability of the very substantial volumes of hydrocarbons in the X and Y Zone tight reservoirs. The Company is well advanced in enhancing its drilling and tight reservoir capabilities for the future work programme in Cambay."

Details of the Entitlement Offer and how to participate

The prospectus and accompanying entitlement and acceptance form setting out the relevant details in relation to the entitlements of eligible shareholders is expected to be lodged with ASIC on or about 6 August 2012 and sent to ASX and AIM on the same date. It will be available after lodgement on the ASX website: www.asx.com.au and also on the Company's website: www.oilex.com.au.

The Entitlement Offer will be open to existing Oilex shareholders with registered addresses in Australia, New Zealand and the United Kingdom on the Record Date, currently anticipated to be after market closes on 15 August 2012.

Eligible shareholders may participate in the Entitlement Offer either in full or by accepting part of their entitlement. Eligible shareholders may also apply for additional shares over their entitlement, subject to a pro-rata scale back if there is an over-subscription.

The options issued pursuant to the Entitlement Offer are proposed to be listed on the ASX but not on AIM.

Notice of General Meeting

A notice convening a general meeting of shareholders, containing resolutions seeking shareholder approval for the grant of options to Patersons (as underwriter of the Entitlement Offer) and sub-underwriters of the Entitlement Offer, is expected to be sent to shareholders on or around 10 August 2012.

Trading Halt

This is the announcement that was referred to in the Company's request for an ASX trading halt on 26 July 2012 and suspension of trading on 30 July 2012.

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.

Information in this report relating to hydrocarbon reserves or resources has been compiled by Mr Ray Barnes B.Sc. (Hons), the Technical Director of Oilex Ltd who has over 38 years' experience in petroleum geology and is a member of the AAPG. Mr Barnes consents to the inclusion of the information in this report relating to hydrocarbon reserves and resources in the form and context in which it appears. Resource estimates contained in this report are in accordance with the standard definitions set out by the Society of Petroleum Engineers, Petroleum Resources Management System, 2007.

LIST OF ABBREVIATIONS AND DEFINITIONS USED HEREIN