Puntland Update

14 May 2012 07:08

14 May 2012 Red Emperor Resources NL ("Red Emperor" or "the Company") Puntland Update

Red Emperor Resources NL is pleased to announce that the Shabeel-1 well currently being drilled in Puntland by the Joint Venture partner and operator, Horn Petroleum Corp. is drilling ahead at a current depth of 3,425m (as at 13 May 2012).

A gross section of 150m of oil (possible net pay between 12-20m) has been encountered in the Cretaceous Sandstones (previously announced) whilst further oil shows have been encountered in the deeper sandstones which are currently being drilled.

A testing program including the zones discovered to date and any deeper potential pay zones encountered will be agreed with the Operator upon total depth being reached.

For further information please visit www.redemperorresources.com or contact:

Red EmperorGreg Bandy +61 8 9225 2826Rebecca Sandford +44 20 7025 7040Cairn Financial Advisers LLP (Nominated Adviser)Jo Turner +44 20 7148 7900Tony RawlinsonFox-Davies Capital Limited (Joint Broker)Daniel Fox-Davies +44 20 3463 5000Richard HailOld Park Lane Capital plc (Joint Broker)Luca Tenuta +44 20 7493 8188Michael ParnesTavistock CommunicationsPaul Youens +44 20 7920 3150Ed PortmanBackground

Red Emperor Resources NL is a natural resources exploration company with interests in the frontier state of Puntland, Somalia and the Republic of Georgia.

* In Puntland, Red Emperor holds a 20% working interest in two licences encompassing the highly prospective Dharoor and Nugaal valleys. These two exploration areas cover over 36,000km2. The operator and 60% interest holder, Horn Petroleum Corp. has spud the first well in a two well programme in early 2012 targeting 300mmbls and 375mmbbls of best estimate Prospective Resources (100% basis). Site construction has commenced on the second well with the setting of the 30 inch surface casing and drilling of a 50 meter pilot hole in readiness for spudding following completion of the first well. * In the Republic of Georgia, Red Emperor has a 20% working interest in onshore blocks VIa and VIb, covering approx. 6,500km2. Joint Venture partner Range Resources Limited previously funded a 410km 2D seismic program with independent consultants RPS Energy identifying 68 potential structures containing an estimated 2.045 billion barrels of undiscovered oilâ€"inâ€"place (on a mean 100% basis) with the first (Mukhiani-1) of two exploration wells having spudded in July 2011. The Company is focussing on a revised development strategy that will focus on low-cost, shallow appraisal drilling of the contingent resources around the Tkibuli-Shaori ("Tkibuli") coal deposit, which straddles the central sections of the Company's two blocks.