Oil Discovery in Colorado

Austin Exploration (“Austin” or “the Company”) (ASX:AKK) has discovered oil at its C-18#1 well in Fremont
County Colorado where crude oil is now flowing naturally to the surface.

Austin Managing Director and CEO Dr. Mark Hart said, the early flows are significant and it would appear that
drilling has intersected a large, naturally fractured and over-pressured oil reservoir as the oil “spewed out” of
the well bore and covered the rig and the crew.

The discovery was made at approximately 4500ft whilst drilling on Monday the 23rd of June. Austin’s Executive
Management and Engineering teams are currently on location and will closely monitor and analyze the well
over coming days.

As this is the first well Austin has attempted to produce oil from the highly stressed Pierre formation, Austin’s
management decided to drill slowly to intensify the engineering design focus for future well design efficiency.
This drilling technique allowed for a detailed evaluation of the engineering characteristics such as the
formation pressures, mud log data, formation benches, force on bit tip, torque on drill string among many
engineering principles. The majority of drilling operations were conducted in day-light hours.

“I’m proud of the work that Guy Goudy, Juan Carlos Carratu and the team have done in not rushing this well to
completion. Watching this oil flow is a beautiful thing for our shareholders”, Dr. Hart said.

The Company has posted a short video clip on its web-site (www.austinexploration.com) of the oil flowing out
of the well bore. This was taken after the initial oil surge at a point where the rig crew was able to get back on
the platform to take this footage.

Further details will be released to the market when results of the analytical work and several days of testing
are completed.