MARKET RELEASE

2 October 2014

Carbon Energy Limited

TRADING HALT

The securities of Carbon Energy Limited (the "Company") will be placed in Trading Halt Session State at the request of the Company, pending the release of an announcement by the Company. Unless ASX decides otherwise, the securities will remain in Trading Halt Session State until the earlier of commencement of normal trading on Monday, 6

October 2014, or when the announcement is released to the market. Security Code: CNX

Shannon Hong

Senior Adviser, Listings Compliance

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Thursday, 2 October 2014
Shannon Hong
Adviser, Listings Compliance
ASX Compliance Pty Limited
20 Bridge Street, Sydney NSW 2000
Dear Shannon

Request for Trading Halt

Level 9, 301 Coronation Drive,

Milton QLD 4064 Australia PO Box 2118, Toowong DC QLD 4066 Australia

phone + 61 (0) 7 3156 7777 fax + 61 (0) 7 3156 7776

Carbon Energy (Operations) Pty Ltd

ABN 61 105 176 967

In accordance with ASX Listing Rule 17.1 Carbon Energy Limited requests a Trading Halt in respect of its shares pre the commencement of trading on Thursday, 2 October 2014, and advises as follows:

Reasons for the Trading Halt:

Pending an announcement concerning a material capital raising which is expected to include a placement to sophisticated and institutional investors in Australia and/or overseas.

Length of Trading Halt:

Carbon Energy requests a trading halt effective from Thursday, 2 October 2014 until the earliest of an announcement being made to the market concerning a capital raising or the opening of trade on Monday, 6 October 2014.

Event expected to happen to end the Trading Halt:

The Trading Halt will be lifted on the earlier of the Company making announcements to the market in relation to a capital raising or the opening of trade on Monday, 6 October 2014.
Carbon Energy is not aware of any reason why the Trading Halt should not be granted. Please call me should you have any questions regarding the above.
Yours sincerely
Tracy Bragg

General Counsel & Company Secretary
www.carbonenergy.com.au

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