time for positive action

Below is a copy of a letter that has been sent to 2500 shareholders from Max Beck

Molopo Energy Limited
VOTE FOR ALL RESOLUTIONS BY 11 FEBRUARY 2011

Shareholders must take positive action

‐ Molopo?s share price performance is well below peers with similar oil and gas reserves and does not reflect the value of the company?s underlying assets
‐ Most of the shares in the company have been bought at prices higher than today?s price
‐ The existing Board refuses to acknowledge the problem and has recommitted to the same strategy that has failed to deliver
‐ Molopo needs new Directors with the capacity and motivation to deliver change
‐ Shareholders are being asked to vote FOR Board change to replace existing Directors, Donald Beard and David Hobday with two new independent Directors, Greg Lewin and Max Beck.
‐ Your VOTE FOR CHANGE is required by 11 February 2011

From Down Under to All Over
The Board?s strategy is unclear and is not working
The Board seems to be making the strategy up as it goes along. Molopo has accumulated a collection of assets across four continents from ?down under to all over?. With no geographic or asset type focus, financial markets struggle to analyse and attribute value to the various assets in the share price.

Strategic ?about turns? and ?surprises? have cost Molopo dearly in market confidence
When Molopo bought the Canadian Spearfish assets 18 months ago, the Board said the acquisition was to ?build Molopo?s production, cash flow and reserves?. On 2 February 2011, with Spearfish having established itself as a core asset (but still not meeting stated production targets), and just months after an announcement that the company would IPO the asset in Canada, the company announced its sale.

This is only the latest example of a string of announcements that have kept analysts and
investors guessing about what the Board will do next. The sale of such a core asset cast
uncertainty about the sustainability of the company?s profit and cash flow, and in particular
where near term upside will come from. We need to question is this the best deal for shareholders or something rushed into in order to impress shareholders before February 15.

Sale of Spearfish means Board change is even more critical
The new Board must:
Ensure Molopo shareholders are receiving the best possible value for Spearfish. The current
board is proposing to sell what has been the company?s star asset and replacing any upside
basically with cash .It is therefore critical to have a clear strategy where those funds will be
deployed.

The Board?s failure to successfully implement and deliver on publicly announced goals has cost the company credibility. Disappointing the market has become the norm, rather than the exception and there is always an excuse as to why things did not happen when they were promised.
For instance, since January 2008 shareholders have heard much about the potential of the Quebec shale gas assets, yet scant progress has been made to add value to these assets. Despite advice on more than one occasion that drilling would commence, nothing has been achieved.

Proposal for Change
If elected, the new Directors intend to transform Molopo from a resource accumulator to a company that is focussed on getting back to basics, ensuring the company?s resources are not spread too thin and delivering shareholder value.

The immediate plans of the proposed new Directors include the following:
? Ensure appropriate technical ability is retained at management level. It is understood that a critical senior management position is soon to become vacant, and the restoration of technical capability to the management team will be an urgent focus for the Board,
? Portfolio review to critically assess and prioritise Molopo?s assets and development plans, taking into consideration realistic resource constraints. Molopo has insufficient scale to focus on too many projects at one time.
? Consolidate technical knowledge and support to promote operating excellence. This will be done through introduction of a functional based organisation structure, as opposed to a geographic structure,
? Review of opportunities to improve the cost profile of production, stripping out costs and delivering results within tightly managed time frames,
? Review of non‐core spending,
? Re‐engagement with shareholders and improve two‐way communication with shareholders,
? Ensuring that the management team is focussed on delivering individual projects free from the
distraction from new corporate acquisitions and prospects.
? Be clear and transparent with the market about what it is doing ? the Board in proposing an IPO in November made no mention of a trade sale.
? Focus on the development of the Canadian shale gas with an immediate drilling programme

The Proposed Candidates
IT IS CRITICAL THAT BOTH CANDIDATES ARE ELECTED TO THE BOARD TO ENSURE THAT BOARD RENEWAL IS EFFECTIVE. THE REMOVAL OF BEARD AND HOBDAY IS ALSO VITAL.
Both Greg Lewin and Max Beck are experienced businessmen with an established track record of
achievement, and they will make things happen.

Greg Lewin is a 30 year veteran of the international oil and gas industry, returning to Australia after a long and productive career as a senior executive with the Shell Group. Greg?s recent roles within the Shell Group include Executive Vice President of Shell Downstream, and President of Shell Global Solutions.

Greg?s career has spanned all aspects of the oil and gas business, including upstream and downstream development. In the late 1990s, he served four years on Shell?s Gas and Power Business Committee ? the senior executive body responsible for commercialisation of Shell?s gas and inter‐related oil resources.

Greg has previous Board experience gained through his position as non‐executive Director of Sasol Limited, a global energy and chemicals company.

If elected, Greg intends to make himself available for nomination to the position of Chairman.

He will bring a fresh perspective, backed by years of international experience, and a sense of urgency to the task of commercialising and delivering value from Molopo?s asset portfolio. He has a proven track record and hands on experience in the critical decision making that will convert Molopo?s potential into value.

Max Beck AM has over 40 years of business experience. Max founded the Becton Property Group which he transformed from a small, Melbourne‐based property development and construction business into a national, diversified development and construction group before his retirement. Max proved his ability to generate wealth for himself and many others along the way.

Max will bring a strong commercial perspective and common sense approach to the Board. He is a team builder and fosters a sense of urgency and accountability for on‐time and on‐budget project delivery. He is a significant shareholder in Molopo and is determined to see the value of the company reflected in the share price. Max Beck says, ?My interests are the same as all shareholders. I want to see the real value in the share price. My intention is to keep decision making focussed on the shareholders? interests?.

It is intended Max Beck?s tenure on the Board will be limited, but he will be there while the change in corporate focus is underway. Max is keen to ensure that Board composition be reviewed at an appropriate time to ensure it has the right balance of capability and experience for the company?s needs going forward. He would consider endorsing local and international candidates in place of his own position in the future.

Vote for Change
We encourage all shareholders to vote FOR ALL of the resolutions.
Voting for only some of the resolutions will not drive the change required.

You can do this by:
? Voting in person at the General Meeting to be held at 10am on Tuesday 15 February 2011 at The Grand Ballroom, The Hotel Windsor, 111 Spring Street, Melbourne,
? Completing the proxy form and faxing or posting it to Molopo Energy?s share registry, making sure to put a cross in the boxes marked ?FOR?,
? Proxy Voting online at www.linkmarketservices.com.au and following the prompts,
? Appointing a proxy who will vote on your behalf at the meeting. This requires you to complete only Steps 1 and 3 on the proxy form. Beck Corporation, one of the requisitioning parties, has nominated Glenn Ross as proxy. If you want to vote FOR the resolutions, write the name GLENN ROSS in the box (Step 1), sign (Step 3) then send to Link Market Services by mail or fax.

Please note that proxy forms must be received by Molopo Energy?s share registry by no later than 10am Melbourne time on 13 February 2011. Please note that this date is a Sunday, therefore
SEND IN YOUR FORM BEFORE FRIDAY 11TH FEBRUARY 2011, OR VOTE ONLINE.

If you have misplaced your proxy form, or would like a new one, please contact Link Market Services on 1800 285 677 or +61‐2‐8280 7472.

If you have any questions in relation to the resolutions to be considered at the General Meeting, please contact the Requisitioners? Information line on 1800 623 855 or +61 2 8256 3375 between 9am ‐ 5pm (AEDST time) Monday to Friday.

IT?S ALL ABOUT SHAREHOLDER VALUE
VOTE ?FOR? ALL RESOLUTIONS BY FEBRUARY 11.