mos chairman walks im not happy

i have a very high regard for don stammer.

without him mos becomes less conservative imo.

good or bad moving forward ???

40


Australian Business Number: 56 003 329 084

28 September 2006

AUSTRALIAN STOCK EXCHANGE ANNOUNCEMENT

New Mosaic Chairman to accelerate development.

Mr David Herlihy has been appointed Chairman of Mosaic Oil NL.

Mr Herlihy, who has extensive corporate and government board experience, was appointed to
the Board of Mosaic in February 2006 and head of the Mosaic Audit Committee.

Mr Herlihy said Mosaic will accelerate development of its extensive Surat Bowen leases; and to
improve commercial and technical efficiencies by initiating a comprehensive expenditure and
operations review to increase returns.

The new chairman also nominated Mosaic's Kimu gas field (Mos 28. 6%) which holds in excess
of 1 trillion cubic feet of possible recoverable gas resource as a renewed priority for the
Company. Growing international interest and the increasing need for liquefied natural gas
(LNG) production from the developing Asian power houses is raising commercial interest in
PNG gas.

"Mosaic intends to accelerate even more its commercialisation of valuable assets in hand - and
actively explore new ventures for diversified growth opportunities," Mr Herlihy said.

He said a pleasing step in this plan was the success of Mosaic's first farm-out since 2002 -
Downlands 4 - flowing commercial gas this morning. (see ASX announcement September 28.06)

The previous Chairman of Mosaic Oil NL, Dr Don Stammer, resigned from the Company today
following a difference of view with the Board.

Dr Stammer's resignation follows Mosaic's release of its 2005-06 financial returns which failed to
reach budget. One-off non-operational expenses of almost $1 million affected forecast returns.




For more information:
Steven McDowell - Mosaic Oil Company Secretary 02 9247 9324
Don Willesee - Central Communications Public Affairs 02 9967 4466.