red sky energy permit granted

RED SKY ENERGY PERMIT GRANTED

Key Points:

Red Sky Energy Ltd acquired the prospective PELA 123 as part of the acquisition of Surat Resources, announced on 19th October 2009;

The permit was at that time in application stage

The work program has been agreed with the NSW Department of Industry and Investment;

PEL 123 has now been granted.

Red Sky Energy Limited (ASX: ROG) has continued its strategy of securing major acreage positions across a number of prospective Australian basins. The Company confirmed it has been granted PEL 123, with a 100% interest. Work programs for the remaining permits, PELA 124 and PELA 125 within Surat Resources, are currently under negotiation.

The agreed work program for the initial two year period of PEL 123 is:

Year 1 geological studies.

Year 2 one core hole to notional 500 metres depth, and wireline logging of water bores.