interview with wall street reporter

5 June 2006


AUSTRALIAN STOCK EXCHANGE ANNOUNCEMENT

Mosaic CEO Interview with the Wall Street Reporter

Below is the script of a telephone interview with Mosaic Oil’s Chief Executive Officer, Mr Lan Nguyen,
nd
by the Wall Street Reporter (www.wallstreetreporter.com
) on Friday evening 2 June 2006.

WSR:
Perhaps you could begin with progress report and update on the Ausam relationship.

CEO:
We have just concluded a farm-in agreement with Ausam, which is part of Mosaic’s strategy to
accelerate exploration, drilling and production in the Company’s petroleum licences in the Surat-Bowen
Basin of southeast Queensland.

Ausam is paying up to A$6.5 million for the recently acquired 2D seismic data set and drilling of up to 4
well two stages to earn up to 35% in PL 119 (Downlands fields), PPL 58 (Downlands pipeline) and the
Bainbilla Block of ATP 471P. The drilling program will be facilitated by Mosaic, Ausam and others
negotiating a long term lease for a drilling rig.

Just prior to the Ausam agreement we structured a niche farm-in agreement with Bow Energy that will test
the potential of oil plays in PL 15.

On the back of these deals we expect to execute another two farm-in agreements in the near term that will
fulfil Mosaic’s production goals; including an increase in oil production to take advantage of the current
record high oil prices.

WSR:
Expand a bit more on this play if you would, also the balance of the company’s assets and interests
portfolio.

CEO:
Mosaic’s current centre of activity is in the Surat-Bowen Basin. We have several producing fields
in that area, along with extensive production and processing facilities to supply Queensland oil and gas
markets.

The exploration portfolio we have in the Surat-Bowen is substantial with a range of play types and
significant hydrocarbon potential in a variety of reservoirs throughout the geological sequence. It is
anticipated that Mosaic – and its partners – will drill 6 wells in the next six to 12 months in this area.

Mosaic also holds a 6 percent share in the Hurricane discovery off the Northwest Shelf of Western
Australia. A well to appraise the oil potential of this significant discovery could be commenced this
calendar year.

Mosaic also holds approximately 28 percent of the Kimu gas field in the foreland of Papua New Guinea,
which could be come significant asset for us if the gas is commercialised in Papua New Guinea.


Finally, we are currently reviewing new exploration opportunities in Australia, New Zealand and
Southeast Asia to diversify into selective petroleum provinces for meaningful corporate growth.

In terms of the drilling of the farmin wells, we will probably commence the drilling in mid-July with the
contract of a drilling rig.

WSR:
Where is the Company at with production levels, reserves, and resources?

CEO:
Our production level was as low as 1000 BOEPD in the March Quarter due to natural production
decline, planned and unplanned maintenance shutdowns and several delays of workovers due to rig market
tightness. However, since April we have gradually restored production in some areas and we expect our
production levels to lift as this year progresses. Success of our coming drilling program will help us to
increase the production and revenue further.

As at 30 June 2005, our proven and probable reserves were 49.9 PJ of gas and 2.7 million bbls of
oil/condensate. The total 3P reserves were 127.5 PJ of gas and 8 million barrels of oil/condensate. In
addition, our net 3P contingent gas resources in the Kimu Gasfield in Papua New Guinea are 385 BCF.

WSR:
Educate us a bit more in terms of infrastructure in place within these regions.

CEO: The infrastructure Mosaic has in its portfolio is unsurpassed. We own 50% of the Wallumbilla
LPG Plant, 100% of the Silver Springs gas processing facility, compressors at Churchie and Downlands
fields, and a total of 290 kilometres of pipeline.

All our leases are close to trunklines, which in turn connect to the main north-south Silver Springs-
Wallumbilla pipeline, owned 50% by Mosaic. As a result of this proximity to pipelines and the easily
accessed terrain, construction costs are relatively low and development times are short for us.

WSR:
In addition to these farmin relationships and alliances, will the Company look to increase its
position here and expand its holding by way of acquisition in the near term?
.
CEO:
As mentioned earlier, Mosaic is in the process of establishing new alliances with complementary
joint venture parties in southeast Queensland.

We expect to announce at least two more farm-in agreements in the coming months. Mosaic is taking in
new farm-in parties to accelerate the exploration and appraisal of selective and potentially rich oil and gas
properties.

The important thing is that we are able to reduce the risk by sharing the potential reward with the farm-in
parties, and thus earning revenue in a shorter time frame than if we did all the work ourselves. In addition,
funds available from the farmout will be utilised to accelerate lower risk oil and gas appraisal and
development activities as well as to help us to diversify in to other areas that could provide us with some
big upside potential.

WSR:
What is it then that is so unique about Mosaic as a company?

CEO:
Mosaic Oil is a unique Australian oil exploration and production company – our daring and success
in the south east Queensland proves that.

While others would not commit to the Surat and Bowen Basins we did our homework and re-invigorated a
valuable hydrocarbon region; with our research and specialised data processing and interpretation we
identified oil and gas opportunities in areas previously overlooked. Mosaic adapted innovative nitrogen
and horizontal drilling techniques from overseas to effectively explore, appraise and commercialise our
petroleum prospects and fields.

It is important that as an exploration company – as well as a producer – that we retain the uniqueness that
has made us successful so far and continue to look beyond the capabilities of the local industry for seismic
exploration and drilling solutions.

WSR: What can you tell us about the present Board and management team at Mosaic?

CEO:
Mosaic has a long term core group of Board members made up of mining, oil and gas, investor and
corporate experience. In February this year two new directors were appointed to make it a 6 person board
– and this brought additional corporate strategy and petroleum exploration experience to our Board.

I’m on the board as well as being the Company’s Chief Executive Officer.

We operate with a small – and again stable – group of senior exploration and production specialists.
Together we have introduced new innovations to the Australian petroleum industry such as nitrogen
drilling and coiled tubing horizontal drilling.

This ingenuity has allowed Mosaic to discover and extract oil and gas from Permian and Triassic
sandstones that previously had not been considered as commercially viable.

Mosaic has been very effective in looking beyond the traditional picture of petroleum exploration – and
we are continuing to do that.

WSR:
Do you feel the investment community understands the Company and its direction now given the
current stock price and level of interest?
.
CEO:
Mosaic’s current stock price is quite low reflecting the lack of drilling activity by Mosaic in the last
12 months.

With the new farm-out agreements we have achieved, we anticipate to resume drilling We anticipate to
resume drilling in mid-July 2006 with the Waggamba-1H horizontal drilling and we expect to drill 6 wells
over the next 6 to 12 months. These would help to support our stock.

WSR:
In closing, why should investors consider Mosaic as a long term investment opportunity?

CEO:
People who look at Mosaic’s history, our innovation, our exploration, production and infrastructure
portfolio and current reserves and resources; our immediate future – and our longer term plans – will find
the Company a very appealing investment.

Like any company in the petroleum industry any investment by shareholders has to be seen as speculative
in that there are so many things that can affect productivity and profitability.

But given what Mosaic has in proven and probable reserves; in-hand sales contracts; current drilling
schedule and a reasonably high potential it could be a very worthwhile investment.

The life of our leases in the Surat-Bowen Basin still has a long way to go.

Longer term we are already researching for future exploration and production opportunities in Australia,
New Zealand and South-east Asia that we believe have quality potential return. Those investments by the
Company may be developed in co-operation with other companies.

But what we are putting in place is a blueprint for ongoing and sustained drilling and production to
increase Mosaic’s revenue and profitability. Not only in southeast Queensland, but with our interest
offshore on the Northwest Shelf of Western Australia where the Joint Venture we are in is due to drill late
this calendar year.

Mosaic is going to be around for a long time and what we have achieved so far is really just the base we
are operating from for the future.

For further information:
Steven McDowell - Company Secretary (02) 9247 9324
Don Willesee - Central Communications Public Affairs (02) 9967 4466
Company office: Level 3, 6-8 Underwood Street, Sydney 2000 NSW