Ann: Reserve & Resource Review Commences, page-2

Reserve & Resource Review Commences • Reserve and resource assessment to be undertaken over the Pathfinder Project following the completion of three development wells • Renowned petroleum engineering firm Gustavson Associates conducting an oil and gas reserves and resources analysis over the Pierre Formation • Drilling has revealed that the Pierre formation at Pathfinder is thicker and deeper than the established production region. Austin Exploration Limited (ASX:AKK) (“Austin” or “the Company”) is pleased to announce that a reserve and resource review over the Pathfinder Project has been initiated by world renowned Petroleum Engineering firm Gustavson Associates. Austin’s recent commercial oil discovery on the Magellan #1 well confirmed a material extension to the Florence oilfield that has produced 15 million barrels of oil from the Pierre formation. Drilling has revealed that the Pierre formation at Pathfinder is thicker and deeper than the established production region to the East of Austin’s property. As such, and is the case with any new oil and gas step-out discovery, the Company is conducting a thorough Geologic and Engineering analysis over the Pierre formation. The Company has engaged Gustavson Associates and Weatherford Laboratories to assist with this process and to ensure an intricate understanding of the reservoir is obtained. Gustavson Associates will be completing a comprehensive oil and gas reserves and resources report over the Pierre formation. On the back of the recent Magellan oil discovery and the significant amount of gas hydrocarbons that are emanating from the Marco Polo and Columbus wells, the Company expects that a significant amount of oil and gas reserves and resources remain in place in the Pierre formation at the Pathfinder property. Mrs. Letha C. Lencioni Vice-President, Petroleum Engineering at Gustavson commented that” We are pleased to be working with Austin on an oil and gas reserves and resources study over the Pierre formation in such an historic oil producing region in Florence Colorado. Austin’s recent oil and gas discoveries to the West of the established Florence 113 N. Santa Fe ●Florence, Colorado 81226 Suite 605, ● Level 6, 50 Clarence Street ● Sydney, NSW, 2000 2 Field oil production support an extension of an active petroleum system into the Pathfinder property. The presence of strong initial gas flows following drilling supports original oil reserves remaining in place and justification for field development” Weatherford Laboratories have been engaged to conduct a detailed and comprehensive drill cuttings analysis to further understand the Pierre formation and the reservoir to assist in optimizing oil and gas production as the Company prepares to accelerate field development and ramp up production, beginning in 2017. The Company looks forward to updating the market on the reserve and resource review shortly. The learn more about Gustavson Associates, please visit their web-site at: http://www.gustavson.com/