Elixir Petroleum Limited : Update on Tiger Farmout

20 October 2011

Company Announcements Platform Australian Securities Exchange Level 4

20 Bridge Street

SYDNEY NSW 2000

Elixir Petroleum Limited (ASX:EXR) (Elixir or the Company) provides an update in relation to the farmout of Block 211/12b located in the UK North Sea.
As previously announced, following a request received from the proposed farminee, Elixir agreed to extend to Friday, 14 October 2011 the time period (Exclusivity Period) for the farminee to satisfy the condition precedent under the Farmout Agreement (FOA). The condition precedent requires the proposed farminee to obtain the consent of the UK Department of Energy and Climate Change (DECC) to the assignment of interest and approval of the proposed farminee as the operator of the licence.
At the conclusion of the Exclusivity Period the proposed farminee had not obtained the consent of DECC. Under the terms of the FOA, Elixir is now able to terminate the FOA at its election should it so choose.
The proposed farminee has expressed confidence that the DECC consent will be obtained in the near term, and on that basis, Elixir will continue to work with the proposed farminee in its efforts to satisfy the condition precedent under the FOA. However, with the expiry of the Exclusivity Period, Elixir will also recommence discussions with other parties with a view to securing an alternative farminee should the efforts of the proposed farminee to satisfy the condition precedent ultimately be unsuccessful.
A further update will be provided in due course. Yours sincerely,

Julie Foster

For further information on Elixir Petroleum please visit the Company's website at www.elixirpetroleum.com

ASX CODE: EXR www.elixirpetroleum.com

Elixir Petroleum Limited

ABN 51 108 230 995

Level 20, 77 St George’s Terrace

PERTH WA 6000, AUSTRALIA

T: +61 8 9440 2650 F: +61 8 9440 2699 E: info@elixirpetroleum.com