INDEPENDENT REPORT INTO RESOURCE POTENTIALThe Directors of...

INDEPENDENT REPORT INTO RESOURCE POTENTIAL

The Directors of Tomahawk Energy Limited (ASX: THK) are pleased to announce that
they have received the initial report from Gaffney Cline & Associates (GCA) on the highly
successful gas project in Oklahoma.

As part of the potential dual listing of Tomahawk on the London AIM market early in
2006, the company commissioned Gaffney, Cline and Associates (GCA) to prepare a
report on the Oklahoma project, and to issue an interim letter summarising the Reserves
and Contingent Resources net to Tomahawks interests.

GCA’s letter confirms that Tomahawk has established a good leasing position in what is
currently a sought-after gas play, and identifies Proved gas reserves, net to Tomahawk’s
interests as of the end of September 2005, of approximately 350 million cubic feet
(MMcf) and Possible gas reserves of nearly a further 1 Billion cubic feet (Bcf).

In addition, GCA has estimated Contingent Resources net to Tomahawk to be in the
order of 20 to 70 Bcf with a "best estimate" of 45 Bcf in the leases where Tomahawk
has interests but where drilling has yet to take place.

While noting that GCA’s letter stresses the significant drilling and expenditure
requirement that still lies ahead in trying to exploit these Contingent Resources, the
directors of Tomahawk believes that these estimates of the "prize" for
shareholders endorses the company's approach throughout 2004 and 2005 to acquire as
large a participation in the project as possible.

At the current gas price of circa US$12/mcf the Gaffney Cline resource estimates for the
Shales alone would generate revenue to Tomahawk of between $300 million and more
than $1 billion with a best estimate of over $700 million assuming it is recovered by
production. The net present value will obviously be much lower, and naturally there can
be no certainty that all of these volumes will be recovered by Tomahawk, or that the
current price of gas will be maintained into the future. Further, if gas prices do stay at
around current levels there is likely to be continuing pressure on the availability of goods
and services, with consequential delays and inflationary impact on the cost of
developing and producing the gas significantly in excess of general inflation levels.
Nevertheless this gives what Tomahawk directors believe to be an independent and
conservative indication of the enormous potential the project offers Tomahawk
shareholders.

Tomahawk directors also believe there to be substantial resource upside through both
the higher gas content (100 scf/t has been used in GCA estimates) and a higher
recovery factor (10% has been used in GCA estimates) both are well below what is
currently being experienced in the Barnett Shale of 175-200scf/t and up to 25%
recoveries.

Each one of these has the potential to add considerably to the resource base although
it should be noted that notwithstanding any other differences that may exist, the Barnett
shale is deeper and as such can be expected to yield higher volumes of gas in place per
ton, and recovery factors.

These resource estimates do not include any of the conventional reservoirs despite the
fact that a significant proportion of the company’s current testing production is coming
from these reservoirs.

GCA’s full report will be included in the AIM listing documentation and Shareholder
Newsletter early in January 2006 when it is finalised.

About Gaffney Cline & Associates

GCA is a leading independent oil and gas consultancy with offices in (among other
locations) the United States, the United Kingdom, Singapore and Australia. GCA has
considerable experience in matters such as estimating reserves and resources, and
routinely provides opinions on these for companies’ internal and statutory reporting, and
for inclusion in investor documentation such as the AIM listing details.

Reserves are those discovered hydrocarbon volumes where development has either
already occurred, or where it is considered reasonable to expect that it will be at some
point in the foreseeable future.

Contingent Resources is a classification applicable to hydrocarbons who presence has
been established, but where development commitment has yet to be sanctioned. In the
case of a play such as the Caney and Woodford Shales such sanction is likely to be
made on a progressive basis as more wells are drilled and stimulation and completion
practices are perfected.

The complete GCA letter, along with full Reserves and Resources definitions utilized by
GCA, may be found on the Tomahawk website.

Should you have any queries regarding this announcement or any aspect of the
company’s development please contact the undersigned on +61 8 9267 4210.

Tony Brennan
Chairman
21 December 2005