ANTARES ENERGY LIMITED

A.C.N. 009 230 835

Ground Floor PO Box 690

68 Hay Street West Perth WA 6872

Subiaco WA 6008 www.antaresenergy.com

ASX/NEWS RELEASE 5 February 2013 STRATEGIC UPDATE

The Directors of Antares Energy Limited (ASX:AZZ) are pleased to advise of the following material update on the operations of the company.

1. Northern Star operational success is repeatable 2. Antares will proceed with funding the field development of Northern Star 3. Antares has withdrawn from the sale process Northern Star Operations

Antares first reported the commencement of drilling operations of Cozart 19 No. 1 on the 19th July 2012 in an Operational Report. Antares since this time has consistently reported the ongoing success of the well leading up to the most recent Quarterly Activity Report where net sales volumes to 31st December 2013 were reported as 38,155 BO & 30,669 MCF being 43,266
BOE.
Cozart 19 No. 1 has been Antares' most successful well and continues to be a solid producer. Most importantly it has evidenced the sustainability of Northern Star production.
Antares has now had over 18 months experience working with the Northern Star project since spudding Cozart 19 No. 1. This time spent gathering data has proven invaluable when applied to the latest three Northern Star wells being Debnam 22 No. 1, Cozart 11 No. 1 and Pettaway No.1.
Antares last traded on Friday, 24th January prior to being in a trading halt for two days and voluntary suspension for four days allowing Antares to maintain a fully informed market. During this period, Northern Star wells were completed to sales under the hands of many contractors and the observation of casual observers. A trading halt, voluntary suspension, a public holiday and two weekends facilitated eleven days for the Board of Directors to gain as much insight as possible from limited production, during a very limited period of time. This informational insight was then compared to all historic data both that of Antares as well as industry based.
The Board of Directors having used all available time and information arrived at the conclusion that the existing Northern Star operational success is repeatable.
The development of Northern Star will now progress with 3D Seismic and the drilling of our first horizontal well.
Antares will report stabilised flow rates for all three new Northern Star wells as soon as stabilised flow rates have been achieved.

Northern Star Field Development Funding

Antares has two principal methods for funding the field development of Northern Star.
Firstly Antares has a 100,000,000 AUD capacity within its convertible notes, AZZG, of which
30,000,000 AUD has been issued and thus 70,000,000 AUD is available.
Antares is in receipt of written advice from a US entity that they would like to buy 100% of the available convertible notes. Antares is currently working with this entity to fully consider this approach.
Secondly Antares has a 200,000,000 USD Term Debt Facility with Macquarie Bank which had been drawn to approximately 60,000,000 USD and has been repaid to its current balance of approximately 33,000,000 USD. Antares has developed an excellent relationship with Macquarie Bank and preliminary discussions have been positive with regard to the development of Northern Star and the rolling over of this facility for another term. Antares will continue discussions and meetings with Macquarie Bank and expects to maintain an excellent working relationship.

Sales Process Withdrawal

Antares received an unsolicited approach for the purchase of its Permian Assets resulting in the initial execution of a Letter of Intent reported on the 26th June 2013. Antares since this time has continued with its operational program as evidence by the drilling of six additional Permian wells as well as its funding program as evidenced by the issue of additional convertible notes, AZZG.
Antares has previously advised shareholders of share price targets it is working to achieve and these targets are yet to be realised. Antares is highly focused on shareholder returns and is motivated to achieve the best possible return for shareholders whether it is through an asset sales process or field development.
The Board of Directors as a result of now being of the belief that Northern Star is both
sustainable and repeatable have concluded that the highest possible returns can be achieved for shareholders through the development of its Permian Assets rather than the proposed sale. For this reason Antares has withdrawn from the sales process.

Please see the below recent announcements available on our website: 28/01/14 Request for Trading Halt 30/01/14 Request for Voluntary Suspension 31/01/14 Quarterly Activity and Cash Flow Reports 03/02/14 Appendix 3C - Announcement of Share Buy Back 04/02/14 Capital Structure Changes

For further information please contact: James Cruickshank Chairman & CEO
+ (61) (0) 488 222 122 or + (1) 214 762 2202

distributed by