ASX Announcement

Date: 13 March 2012

Texon Petroleum Ltd ABN 24 119 737 772

Level 9, 46 Edward Street

Brisbane, Qld Australia 4000

Postal: GPO Box 402

Brisbane, Qld Australia 4001

Telephone: +61 7 3211 1122

Fax: +61 7 3211 0133

Directors: John Armstrong David Mason Bernard Rowley Company Secretary:

Des Olling

Contact: Cliff Foss President & CEO

cfoss@texozep.com

or:

John Armstrong Chairman john.armstrong@texonpetroleum.com.au

Website:

www.texonpetroleum.com.au

ASX Code: TXN

Reserves Up 90%

At year end 2011, Reserves attributable to Texon's NRI are as in the following table:

mmboe

Proved Probable Possible Total

Eagle Ford

1.54

3.32

6.47

11.33

Other

(incl Olmos)

0.93

0.57

0.05

1.55

Totals:

2.47

3.89

6.52

12.88

The total of 12.88 mmboe is a 90% increase on the 6.698 mmboe at year end 2010.
Texon's year end 2011 Proved, Probable and Possible Eagle Ford reserves are 11.33 mmboe, an increase of 125% compared with year end 2010.
Since year end 2011 - per the Company's announcement on
8th March, the Olmos ("Other" in the above table) reserves have been sold.
The year end 2011 Reserves in the Eagle Ford have been assessed by Netherland, Sewell & Associates, Inc. For the Other Reserves, the year end 2011 reserves are taken to be the 2010 year end reserves (determined by Delilah B. Hainey of Hainey and Hainey, a reservoir consultant to the Company) less production in 2011.
Page -2-
----------------------------------------------------------------------------------------------------------------------------------------- Netherland, Sewell & Associates, Inc and Delilah B Hainey are qualified in accordance with ASX Listing Rule 5.11. Netherland, Sewell & Associates, Inc has consented to the form and context of the Eagle Ford reserves shown in this report.
-ends

Current oil and gas futures prices:

Source: NYMEX April 2012

Oil: US$106.51/bbl

Gas: US$2.27/mmbtu (this translates to approx. US$3.80/mcf for all Texon gas - including US$4.30/mcf for Olmos and Eagle Ford gas)

Glossary:

bbl: barrel

boe: barrels of oil equivalent (including gas converted to oil equiv barrels on basis of 6mcf to 1barrel of oil equiv)

mcf: thousand cubic feet

mmboe: million barrels of oil equivalent (including gas converted to oil equiv barrels on basis of 6mcf to 1 barrel of oil equiv)

mmbtu: million British thermal units

NRI: Net Revenue Interest