Ann: EGO: RPS Energy Independent Study For EP368 , page-2

re: Ann: EGO: RPS Energy Independent Study Fo... Permits EP368 and EP426, Onshore North Perth Basin, Western Australia

Empire Oil & Gas NL ("Empire") is pleased to announce the results of an independent study by RPS Energy Services Pty Ltd (“RPS”) of the unconventional gas potential of the Early Permian Irwin River Coal Measures in Exploration Permits EP368 and EP426.

The RPS study concluded that the un-risked, undiscovered gas-in-place potential is over 80 BCF (billion cubic feet) per square kilometre within the Irwin River Coal Measures in the southern parts of these permits. The undiscovered gas-in-place potential is composed predominantly of adsorbed and solution gas with minimal free gas being present. Taking into consideration areas excluded where the objective Irwin River Coal Measures is in excess of 5,000 metres depth or areas of low volumes, Empire estimates that a total un-risked, undiscovered gas-in-place volume of 32 TCF (trillion cubic feet) of adsorbed and solution gas is present in the interbedded shale/thin tight sand section in the Irwin River Coal Measures is a reasonable estimate of the unconventional gas potential of these permits.

Empire advises caution in the use of these volumes.

Economic development of the resource would require significant well numbers and an assumption that adequate rigs and stimulation units will be available, in addition to permitting, legal, environmental permits and development
and completion costs.

Following the acquisition of and subject to the interpretation of the North Erregulla 3D Seismic Survey, Empire plans to drill a conventional well on the North Erregulla Prospect and also into thedeeper objective High Cliff Sandstone section. During these operations, Empire plans to cutcores through the Irwin River Coal Measures section for further shale gas studies by qualifiedlaboratories. In addition, Empire will acquire a full suite of electric logs suitable to evaluate theshale gas potential of the Permian Aged Irwin River Coal Measures section and providecalibration with the cores.

Empire looks forward to updating shareholders on the timing of seismic and drilling operations in Exploration Permits EP368 and EP426.