hydro shows at 3200 feet

T.D. 7900 feet

Update on the Nesbitt #5 Well at the Silverthread Project
Solimar Energy Limited (“Solimar Energy”) (ASX Code: SGY) advises that drilling of the initial well,
Nesbitt # 5, at the Silverthread Project in the Ventura Basin, California is continuing in line with
expectations. As at 0600 hours on 22 May 2008 (Pacific Coast Time, USA), the well has been
drilled to a depth of 4,730 feet and was drilling ahead in a 9 7/8 inch hole. The 10 ¾ inch surface
casing has been set to 1,003 feet. Some hydrocarbon indications have been observed in the
shallow Saugus sand reservoir at around 3,200 feet. The significance of the hydrocarbon shows
will be evaluated after wireline logging operations have been completed.
The Nesbitt #5 well will be drilled to a target depth of 7,900 feet. The primary zones of interest are
the Upper and Lower Mohnian Sand (Monterey Formation). This well is expected to take up to 25 days to drill in the absence of any unforseen operational problems using the Kenai drilling rig.