Neon Energy Limited : Response to ASX Price and Volume Query

17 December 2013

Jill Hewitt

Senior Adviser Listings Compliance (Perth)

Australian Securities Exchange

Exchange Plaza

2 The Esplanade

PERTH WA 6000

Dear Jill

We refer to your letter dated 17 December 2013 received at approximately 9.20am (WST) this morning. As requested please find below the Company's response to the questions from ASX:

1. No, the Company is not aware of any additional information which, if known, could be an explanation

for recent trading in the securities of the Company. The Company would like to refer to the announcement made on 6 December 2013 titled, "Cua Lo Gas Discovery". We believe that the market has taken some time to analyse, interpret and adjust to the information disclosed in that announcement. The Operator's preparations for production testing at Cua Lo are ongoing and the Company will update the market with respect to this production test as soon as it has been determined.

In addition, there has also been some recent Merger & Acquisition speculation in the Australian Oil & Gas sector.

The recent movement in Neon's share price may be due to a combination of the above 2 events. Besides the information disclosed in our 6 December 2013 announcement, there has not been any

material event or changes in the Company's affairs.

2. Not applicable.

3. Not that the Company is aware.

4. Yes, the Company is in full compliance with the listing rules. Yours sincerely

Company Secretary

Neon Energy Ltd, ABN: 49 002 796 974, Ground Floor, 88 Colin Street, West Perth, 6005 Ph: +61 (08) 9481 1176 Fax: +61 (08) 9481 7720

PO Box 1789, West Perth, 6872 Website: www.neonenergy.comE-mail: info@neonenergy.com

17 December 2013
Mr G Chiappini Company Secretary Neon Energy Limited
Ground Floor, 88 Colin Street
WEST PERTH WA 6005
By Email: gabriel@laurus.net.au
Dear Gabriel,

ASX Compliance Pty Limited

ABN 26 087 780 489

Level 8 Exchange Plaza

2 The Esplanade

Perth WA 6000

GPO Box D187

PERTH WA 6840

Telephone 61 8 9224 0000

Facsimile 61 8 9221 2020 www.asx.com.au

We have noted a change in the price of the Company's securities from a closing price of 34.5 cents on Friday 13
December 2013, to an intra-day high of 42 cents today. We have also noted an increase in the volume of trading in Company's securities over this period.
In light of the price and volume change, ASX asks you to respond separately to each of the following questions:
1. Is the Company aware of any information concerning it that has not been announced to the market which, if known by some in the market, could explain the recent trading in its securities?
2. If the answer to question 1 is "yes":
a) Is the Company relying on Listing Rule 3.1A not to announce that information under Listing
Rule 3.1?
Please note that the recent trading in the Company's securities would suggest to ASX that such information may have ceased to be confidential and therefore the Company may no longer be able to rely on Listing Rule 3.1A. Accordingly, if the answer to this question is "yes", you need to contact us immediately to discuss the situation.
b) Can an announcement be made immediately?
Please note, if the answer to this question is "no", you need to contact us immediately to discuss requesting a trading halt (see below).
c) If an announcement cannot be made immediately, why not and when is it expected that an announcemant will be made?
3. If the answer to question 1 is "no", is there any other explanation that the Company may have for the recent trading in its securities?
4. Please confirm that the Company is in compliance with the Listing Rules and, in particular, Listing
Rule 3.1.

This request is made under, and in accordance with, Listing Rule 18.7. Your response is required as soon as reasonably possible and, in any event, by no later than 11 am (WST) today, Tuesday 17 December 2013. If we

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do not have your response by then, ASX will have no choice but to consider suspending trading in the Company's
securities under Listing Rule 17.3.
You should note that if the information requested by this letter is information required to be given to ASX under Listing Rule 3.1 and it does not fall within the exceptions mentioned in Listing Rule 3.1A, the Company's obligation is to disclose the information "immediately". This may require the information to be disclosed before the deadline set out in the previous paragraph.
ASX reserves the right to release a copy of this letter and your response on the ASX Market Announcements Platform under Listing Rule 18.7A. Accordingly, your response should be in a form suitable for release to the market.
Your response should be sent to me by e-mail at jill.hewitt@asx.com.au or by facsimile to 08 9221 2020. It should notbe sent directly to the ASX Market Announcements Office. This is to allow me to review your response to confirm that it is in a form appropriate for release to the market, before it is published on the ASX Market Announcements Platform.

Listing Rule 3.1 requires a listed entity to give ASX immediately any information concerning it that a reasonable person would expect to have a material effect on the price or value of the entity's securities. Exceptions to this requirement are set out in Listing Rule 3.1A.
The obligation of the Company to disclose information under Listing Rules 3.1 and 3.1A is not confined to, nor is it necessarily satisfied by, answering the questions set out in this letter.
In responding to this letter, you should have regard to the Company's obligations under Listing Rules 3.1 and
3.1A and also to Guidance Note 8 Continuous Disclosure: Listing Rules 3.1 - 3.1B.

If you are unable to respond to this letter by the time specified above, or if the answer to question 1 is "yes" and an announcement cannot be made immediately, you should discuss with us whether it is appropriate to request a trading halt in the Company's securities under Listing Rule 17.1.
If you wish a trading halt, you must tell us: