Grant of Retention Licence - Salmon Gums

Spitfire Oil Limited

Grant of Retention Licence

5th September 2012.

Spitfire Oil Limited ("Spitfire") is extremely pleased to report that its wholly owned subsidiary, Spitfire Oil Pty Limited, has been granted a retention licence over its Salmon Gums lignite deposit (the "Deposit") near Salmon Gums, Western Australia. The retention licence has been granted for a renewable five year period. Under the terms of the retention licence, there are no minimum expenditure commitments required to be made over the Deposit.

Further information

Spitfire Oil Limited

Mladen Ninkov - Chairman

Roger Goodwin - Director Telephone: +44(0)20 7629 7774

Panmure Gordon (UK) Limited Telephone: +44 (0)20 7886 2500

Dominic Morley

Hannah Woodley

Spitfire Oil Limited's shares are quoted on the Alternative Investment Market (AIM) of the London Stock Exchange (symbol SRO)

The Company's news releases are available on the Company's web site: www.spitfireoil.com