For personal use only

Level 21

500 Collins Street

Melbourne Victoria 3000 Australia Tel: +61 (0)3 8610 4700 Fax: +61 (0)3 8610 4799 Email: [email protected] Website: www.octanex.com.au

QUARTERLY ACTIVITY REPORT

TO 30 JUNE 2012

HIGHLIGHTS FOR THE QUARTER

Operational Matters

 Processing of new Winchester 3D data acquired in WA-323-P and WA-330-P nearing completion  Shell rig to drill the Palta-1 well in WA-384-P scheduled for Q4 2012 and processing of newly

acquired Tortilla 2D seismic survey data underway

 Processing of the new 3D seismic surveys in Southern Bonaparte Basin permits progressing  Matuku prospect in PEP 51906 confirmed by OMV as a valid structural closure at the target

levels, with estimated mean recoverable resource of approximately 65 million barrels  Re-processing of 2D seismic data in PEP 52593 and PEP 53473 completed

Corporate Activity

 Payment of fully franked in-specie Special Dividend of Cue Shares and Petrel Shares  Appointment of independent non-executive Director

 No call on Partly Paid Shares before 31 March 2014

PERMIT INTERESTS HELD

Octanex N.L. (ASX Code: OXX), in its own name and through its wholly-owned subsidiaries, currently holds working interests in 17 petroleum exploration permits and residual and royalty interests in three other such permits that are situated in the offshore basins of Australia and New Zealand. The Australian permits are concentrated on the Greater North West Shelf offshore from Western Australia in regions of moderate to intense exploration activity.

In addition to the Australian based permits, Octanex holds interests in four strategically located permits in the offshore Taranaki Basin of New Zealand, a region of intense exploration activity – see following Location Map of Portfolio of Permits.

The policy underlying the management of the Octanex group’s permits and related interests is one which, insofar as is practical and both legally and commercially expedient, does not differentiate between whether they are owned by Octanex N.L. directly, or indirectly through one or more of its wholly-owned subsidiaries. These interests and assets are all referred to in this report as being held by

Location Map of the Octanex Group’s Portfolio of Permits

OPERATIONAL MATTERS Carnarvon Basin Interests

WA-323-P & WA-330-P

–

These permits are held by a Joint Venture consisting of:

Santos Offshore Pty Ltd 75% and Operator

(subsidiary of Santos Limited)

Octanex Group 25%

WA-323-P and WA-330-P comprise a discrete project area for the exploration of 640 km² – see the following WA-323-P & WA-330-P Location Map. The permits were each granted 5 year renewals in April 2011.

A farmin agreement entered into with a subsidiary of Santos Limited (ASX Code: STO), Santos Offshore Pty Ltd (Santos), means the Octanex Group will be free carried in respect of its 25% interest in both permits through a 3D seismic survey across the permits, the first well in one of the permits and all other exploration costs for the two permits.

In Q4 2011, Santos completed the new Winchester 3D seismic survey that acquired approximately 720 km² of new data within and adjacent to the permits. The data is undergoing processing that is currently scheduled to be completion in Q3 2012.

Santos has also entered into an assignment agreement in relation to the Ensco 109, a jack-up drilling rig. The rig is contracted to drill the farmin obligation well into the Winchester prospect from a yet to be determined location within the area of the WA-323-P permit. The rig slot assigned to Santos has the well currently scheduled to be drilled in Q1 2013.

WA-323-P & WA-330-P Location Map

WA-362-P &, WA-363-P – Exmouth Plateau

The WA-362-P and WA-363-P Joint Ventures both now consist of the following parties: Eni Australia Limited (Eni) 66.667% and Operator

Octanex Group 33.333%

These two permits, plus the further two Exmouth Plateau permits detailed in the following section, cover an aggregate area of approximately 26,830 km2. The four permits are located on the northern margin of the Exmouth Plateau, 300 – 400 km north-west of the Western Australian coastline – see the following Location Map of Exmouth Plateau Permits.

During Q4 2011, OMV Australia Pty Ltd (OMV) withdrew from both the WA-362-P and WA-363-P permits and their associated Joint Ventures. As a consequence, OMV’s 40% interest in both permits was assigned to the Octanex Group (as to 13.333%) and Eni (as to 26.667%), increasing the two companies’ interests to the percentages detailed above.

The Joint Venture of the Octanex Group and Eni lodged applications to renew both of WA-362-P and WA-363-P for 5 year terms. A regulatory requirement for the grant of a renewed term is that half of the original area of the permit be relinquished. If granted, the renewed WA-362-P and WA-363-P permits will be as displayed in the following map of the Areas Applied for Renewal – WA-362-P and WA-363-P. The committed work programme in the first three years of both renewed terms calls for seabed coring and studies. This is then followed by a new 3D seismic survey and an exploration well in the last two years of each term.

Areas Applied for Renewal – WA-362-P & WA-363

Location Map of Exmouth Plateau Permits

WA-386-P & WA-387-P – Exmouth Plateau

During the quarter and subsequent to the end of the quarter, OMV and Eni respectively gave notice of their withdrawal from the WA-386-P and WA-387-P permits and their associated Joint Ventures. These withdrawals will be effective from the expiry of the initial terms of both of the permits on 20 August 2012. As a consequence, and subject to the re-assignment of the OMV and Eni interests, the Octanex Group will hold a 100% participating interest in both permits.

A review of the prospectivity of the two permits has been ongoing with a view to determining the best future exploration programmes. This review will determine the form of any renewal applications for WA-386-P and WA-387-P that may be made on the expiry of their initial terms in August 2012.

WA-384-P, WA-385-P & WA-394-P

–

These three permits are located in the Southern Exmouth Sub-basin and the Octanex Group holds interests in them that consist of reversionary and residual interests, not working or participatory interests – see the following Location Map.

The Company previously concluded an agreement with Shell Development (Australia) Pty Ltd (Shell) for the disposition to Shell of a 100% working interest in each of the 384-P, 385-P and WA-394-P permits. Octanex holds residual rights in each of the permits in the form of discovery payments and royalties, as well as rights of reconveyance.

Shell has a commitment to drill the Palta-1 well in WA-384-P prior to 20 August 2013, being the expiry date of the extended year-6 of the permit’s initial term. Shell has contracted the semi-submersible rig, Noble Clyde Boudreaux, to drill the Palta-1 gas exploration well; with drilling currently scheduled to commence in Q4 2012. It will be drilled in water depths of approximately 1350m and to a total depth of greater than 5000m. Shell has secured environmental approval for the well under the EPBC Act and is seeking final approvals to undertake the drilling activity.

Just prior to the end of Q1 2012, Shell acquired the 783 km Tortilla 2D marine seismic survey in WA-385-P. The survey was acquired off the North West Cape of Western Australia, largely within the area of the permit. The survey also acquired ‘tie lines’ between the planned location for the Palta-1 well (to be drilled in WA-384-P to the north) and the previously drilled wells of Herdsman-1 and Pendock-1A to the south and Falcone-1A to the north-east.

The acquisition of the Tortilla 2D survey was timed to avoid the humpback whale migration. As part of a range of management measures, Shell elected that the seismic survey would not come within a 10 km buffer zone to the outer boundary of the Ningaloo World Heritage Area. The Tortilla 2D survey is the final work commitment for the WA-385-P permit in the current term.

Shell was initially required to make a decision by 21 February 2011 to commit to drill a well in WA-394-P or re-assign a 100% interest in the permit to Octanex if no drilling commitment was made. Octanex agreed to defer Shell’s requirement to drill a well until year-3 of any renewal of this permit, if and when renewed, on the basis that Shell applied to vary the Year 6 permit work programme. During the previous quarter, Shell was granted the variation and will carry out a trial reprocessing of 110 km of existing seismic data from within the WA-394-P permit.

Southern Bonaparte Basin Interests

Octanex holds interests in six petroleum exploration permits in the offshore Southern Bonaparte Basin. Those permits are WA-407-P, WA-420-P, WA-421-P, WA-422-P, WA-440-P and WA-441-P and they are displayed in the following Location Map of Southern Bonaparte Basin Permits.

WA-407-P, WA-420-P, WA-421-P, WA-441-P & WA-440-P – Southern Bonaparte Basin

Octanex holds a 100% interest in four adjacent permits (407-P, 420-P, 421-P and WA-441-P) that encompass 232 graticular blocks and comprise approximately 18,950 km² in total in the Southern Bonaparte Basin. Octanex also holds a 100% interest in the WA-440-P permit that is situated south-east of the other four and is also within the Southern Bonaparte Basin. WA-440-P encompasses 52 graticular blocks and comprises approximately 4,310 km². These five permits are displayed in the Location Map.

As detailed in the following section on the WA-422-P permit, Octanex farmed into and acquired a 60% interest in WA-422-P. That permit adjoins WA-420-P and WA-421-P (see the Location Map).

During Q4 2011 and Q1 2012, the Company acquired six new seismic surveys that fulfilled the Year 2 and 3 work programme commitments of their respective permits to acquire either new 2D or 3D data. One survey is located within each of the six permits detailed above.

The 2D surveys acquired were the 959 km Kingfisher survey (in WA-421-P), the 653 km Hawk survey (in WA-441-P) and the 556 km Falcon survey (in WA-440-P) – see the relevant survey grids in the Location Map of Southern Bonaparte Basin Seismic Surveys below.

Processing of these three 2D surveys was completed during the quarter and interpretation work on each of them has commenced.

The 3D surveys acquired were the426 km² Ascalon survey (in WA-407-P), the501 km² Tamar survey (in WA-420-P) and the 331 km² Rissa survey (in WA-422-P) – see the relevant polygons in the Location Map of Southern Bonaparte Basin Seismic Surveys below.

Processing of two of the 3D surveys, Ascalon and Rissa, was completed during the quarter and delivery of the new data is imminent. As detailed below, the Tamar 3D survey is being processed in conjunction with two vintage 3D surveys that were acquired to the north; the Adventurer and Dunnart 3D surveys. The processed Tamar and integrated data is due for delivery during Q3 2012.

Location Map of Southern Bonaparte Basin Permits and Seismic Surveys

The new 2D seismic data acquired by the Kingfisher survey, when combined with relevant pre-existing and recently reprocessed 2D data, are expected to provide coverage of a play concept over an area of some 2,500 km² within the 421-P and 420-P permits. The play extends from WA-420-P into WA-421-P and the new Tamar 3D survey shot in WA-WA-420-P was acquired to further evaluate what is an extensive play type.

The Kingfisher and Tamar surveys are linked in their endeavour to identify potential oil and gas targets, based on a play concept where the inferred source of the hydrocarbons is the Sahul Syncline. The interpreted migration pathway is along the ‘Tamar Nose’ structural high in WA-420-P and into the north-eastern corner of the WA-421-P permit. The Tamar Nose is a north-east/south-west trending structural high that extends down into the Sahul Syncline source kitchen, and is seen as a natural focus for hydrocarbons migrating towards the southern Londonderry High.

The Tamar survey area is located on the ‘Tamar Nose’, which is only lightly covered by vintage 2D seismic surveying that is not presently sufficient to define trap closures. Three of the four wells drilled on the ‘Tamar Nose’ have oil shows, while the fourth well, Tamar-1 drilled in 1979, was not located on a valid trap.

To the north of the Tamar 3D survey area are two 3D seismic surveys; the Adventurer 3D and the Dunnart 3D. These vintage 3D surveys are expected to benefit from modern reprocessing of this data that Octanex plans to carry out as an adjunct to the newly acquired Tamar 3D data. Together, the two (reprocessed) vintage 3D surveys and the new Tamar 3D survey will constitute 3D seismic coverage of an exploration area of over 1200 km², most of which is contained within WA-420-P.

The target sandstone reservoirs of the Tamar 3D survey are the Early Cretaceous to Late Jurassic, Sandpiper Sandstone, the Late Jurassic Elang Formation and the Middle Jurassic Plover Formation. The Sandpiper Sandstone and Elang Formation/Plover Formation reservoirs are separated by the Late Jurassic Frigate Shale sealing marine claystones.

The Hawk 2D survey was acquired over leads in the north-western and central part of the WA-441-P permit. Interpretation of vintage 2D seismic data in the area of the survey indicated the presence of targets draped over basement topography. The Hawk survey was designed to identify whether these leads may form closed traps.

The Falcon 2D survey was acquired over leads in the north-eastern part of the WA-440-P permit where interpretation of vintage 2D seismic data in the area of the survey has defined several structural leads. As with the Hawk survey, the Falcon survey was designed to identify whether these leads may form closed traps.

The Ascalon 3D survey area is located on a north-east structural trend between the Saratoga-1 and Ascalon-1 gas discovery wells in the western sector of the WA-407-P permit. The objective of the survey is to enable more precise mapping of the Early Cretaceous Sandpiper Formation sandstone play and the deeper Late Permian, Tern and Cape Hay sandstone plays of the Hyland Bay Formation. Although gas was discovered in the Early Cretaceous Sandpiper sandstone in Saratoga-1, there is the possibility that oil may be present in the leads defined on vintage 2D in the Ascalon 3D survey area as, unlike the Saratoga discovery, they are not located directly over the main structural fault that would have provided a conduit for gas to reach the Early Cretaceous Sandpiper Formation. The Late Permian is a gas play.

WA-422-P – Southern Bonaparte Basin

The Joint Venture for the permit consists of:

Goldsborough Energy Pty Ltd 60.000% and Operator

(subsidiary of Octanex N.L.)

National Oil Corporation Pty Ltd 27.500%

Ultragas Pty Ltd 9.375%

Ultragas Resources Pty Ltd 3.125%

(subsidiary of Ultragas Pty Ltd)

In Q3 2011, Octanex acquired a 60% interest in this permit, which comprises approximately 4,605 km² in the Southern Bonaparte Basin, as displayed in the Location Map above.

The Company’s wholly-owned subsidiary, Goldsborough Energy Pty Ltd (Goldsborough), holds the 60% interest and has become the Operator for the permit.

The interest was acquired through a farmin arrangement and the transfer of the interest has received the necessary regulatory approvals. Under the terms of the farmin agreement, the Company agreed to conduct, at its cost, a new 3D seismic survey within the WA-422-P permit and meet the costs of reprocessing existing 2D seismic data.

The Rissa 3D seismic survey (mentioned in the previous section) fulfilled the seismic acquisition obligation of the farmin agreement, with acquisition completed during the previous quarter.

The Rissa 3D survey area is located on the northern end of the Londonderry High, which is seen as a potential natural focus for oil migration. To the north of the Rissa survey area there are several oil fields (Kuda Tasi, Coralina, Laminaria, Jahal/Buffalo and Kitan); while the presence of residual oil columns in exploration wells within and to the south of the survey area indicates the existence of an oil migration route through the survey area.

Leads identified on vintage 2D seismic data possess similar west to east oriented horsts and tilted fault blocks to those in the oil discoveries to the north of the Rissa survey area. The poor resolution of the vintage 2D restricts clear definition of trap closure and cross fault seal juxtaposition.

Hence there was a need to acquire a modern 3D seismic dataset to better resolve the leads within the Rissa survey area at the target reservoirs of the Early Cretaceous Sandpiper sandstones and Jurassic Elang and Plover formations.

Browse Basin Interests

WA-342-P – Browse Basin

This permit is held by the Cornea Joint Venture which consists of the following interests:

Coldron Group 29.100%

Moby Oil & Gas Limited (ASX Code: MOG) 22.375%

Octanex Group 18.750%

Cornea Petroleum Pty Ltd 14.875%

Cornea Oil & Gas Pty Ltd 8.500%

Auralandia N.L. 6.400%

The Operator of the Cornea Joint Venture is now Cornea Resources Pty Ltd.

On 4 January 2011, the Joint Venture was granted a renewal of the WA-342-P permit for a 5 year term – see the WA-342-P Location Map below.

The committed work programme in the first three years of the renewed term calls for studies and an exploration well; followed by reprocessing of 3D seismic and further studies in the last two years of the term

The studies in relation to the permit and the Cornea structure continue, as do discussions with potential farminees.

WA-342-P Location Map

Taranaki Basin Interests

As displayed in the following Taranaki Basin Permit Location Map, the Company holds interests in four petroleum exploration permits in the offshore Taranaki Basin, namely PEP 51906, PEP 52593, PEP 53537 and PEP 53473. Octanex’s interests in the offshore Taranaki Basin covers over 7000 km² in New Zealand’s premier oil producing basin. The group subsidiary, Octanex NZ Limited, holds the interests in the four permits.

PEP 51906

–

The PEP 51906 Joint Venture consists of:

OMV New Zealand Limited (OMV) 65% and Operator

Octanex Group 35%

The PEP 51906 permit covers an area of 1,613 km² and is adjacent to three producing fields; the Maui gas/condensate field to the east (which has been in production since 1979), the Tui oil field to the north-east (which has been producing since 2008) and the Maari/Manaia fields to the south (which commenced production in 2009) – see the Location Map below.

The Company previously entered into a farmin agreement with OMV under which it assigned a 65% participating interest in PEP 51906 to OMV; with Octanex retaining a 35% participating interest. Part of the farmin terms were that OMV agreed to acquire and meet the costs of the acquisition, processing, mapping and interpretation of a new 270 km² 3D seismic survey over the Matuku structure within PEP 51906. The Matuku 3D programme was completed in 2011, with mapping and interpretation of the data completed in Q1 2012.

Taranaki Basin Permit Location Map

As a result of the work done on the new 3D data, OMV advised Octanex during the quarter that its mapping of Matuku confirmed it as a valid structural closure at the target levels, with estimated mean recoverable resource, if there are hydrocarbons in the Matuku prospect, of approximately 65 million barrels.

In conjunction with the mapping and interpretation of the Matuku 3D data, OMV has undertaken a variety of studies including basin modelling, vitrinite reflectance analysis and a wide-ranging assessment of the potential for adequate reservoir within the area of the Matuku prospect. The central outcome from the mapping, interpretation and related studies that confirmed the prospect is that OMV commenced well planning and the acquisition of the long lead time items required for a well. Prior to the end of the quarter, OMV commenced actively seeking a suitable rig in order to drill Matuku-1 and, if a rig can be secured, the current objective is for drilling to commence in the first half of 2013.

Under the terms of the Farmin Agreement between Octanex and OMV, OMV must commit to the drilling of a well within PEP 51906 by 19 November 2012, or reassign its 65% participating interest to Octanex. If OMV makes that drilling commitment, it will then meet 100% of the costs of drilling the well. OMV has not yet made this drilling commitment.

The studies undertaken by OMV indicate that the Matuku prospect is robust. It has a perceived low risk associated with the existence of the structure, presence of suitable reservoir rock and adequacy of seal. OMV’s basin modelling studies further suggest the presence of a substantial source kitchen (within the Kahurangi Trough to the immediate south and west of the prospect) that is mature for the generation of oil.

PEP 53537

–

The PEP 51906 Joint Venture consists of:

OMV New Zealand Limited (OMV) 65% and Operator

Octanex Group 35%

PEP 53537 adjoins the western boundary of PEP 51906 – see the Location Map above. It covers an area of 1,146 km² and has an extensive grid of 2D seismic data of various vintages covering the southern, western and north-eastern sections of the permit area.

Based on previous successful drilling results in areas close to PEP 53537, the Kapuni Group plays are seen to be the most prospective for the permit, although possible targets in the Moki Formation will also be analysed.

The work programme commitments for the initial period of PEP 53537 are to undertake geological studies, reprocess 400 km of existing 2D seismic data and acquire 100 km of new 2D seismic data and 18 km² of new 3D seismic data.

In conjunction with the Matuku 3D seismic survey in PEP 51906 and PEP 53537, the seismic vessel carried out the 2D seismic survey in PEP 53537 required under the work programme. Processing of all the new data was completed in Q1 2012 and detailed interpretation and mapping is ongoing in conjunction with the newly reprocessed data. The initial phase of that interpretation work was completed early in the quarter.

PEP 52593

–

Octanex holds a 100% interest in PEP 52593. The permit covers an area of over 3,500 km² and, like PEP 51906 and PEP 53537, is located in the offshore Taranaki Basin – see the Location Map above. The Company acquired all relevant available seismic data across the area of the permit and reprocessing of this existing seismic data was completed in 2011. Interpretation and mapping of the reprocessed data was undertaken and completed during the quarter. The outcome of this work will determine whether the Company will commit to the next phase of the work obligations, which entails the acquisition of new seismic data.

Leads have been identified within PEP 52593 and further studies are underway in relation to them, with the objective of identifying potential source, migration paths and the presence of adequate reservoir sequences that may onlap and drape the structural high that is a feature of this permit. Under the terms of the PEP 52593 permit, by 1 April 2013 the Company can either surrender the permit or commit to acquire, process and interpret a minimum of 2,250 km of new 2D seismic data. Alternatively, the Company can surrender a minimum of 25% of the permit area and commit to acquire, process and interpret a minimum of 1,750 km of new 2D seismic data.

By not later than 1 April 2014, the Company must either commit to drill a well in the permit area or surrender the permit.

PEP 53473

–

Octanex holds a 100% interest in PEP 53473. The permit covers an area of 853 km² and is located in the offshore Taranaki Basin, lying between the PEP 51906 and PEP 52593 permits (in which the Company holds 35% and 100% interests respectively), and is immediately adjacent to the north of the Tui oil field – see the Permit Location Map above.

The permit is covered by an extensive grid of 2D seismic data of various vintages. However, despite its location adjacent to the producing Tui oil field, there has been little modern 3D seismic data acquired within the permit area to date; apart from approximately 40 km² of Tui 3D ingress seismic in the south of the permit. There have been two wells drilled within the permit area, Takapou-1 and Kopuwai-1, both of which encountered oil shows.

Under the terms of the permit and by 19 March 2013, the Company must reprocess and interpret existing 2D seismic data from within and immediately adjacent to the permit and carry out various geotechnical studies. PEP 53473 is being explored as a combined area with PEP 52593 and reprocessing of more than 2000 km of existing 2D data from within and adjacent to both permits has been completed. Detailed interpretation and mapping of the newly reprocessed data was then completed during the quarter.

Following the reprocessing and studies, the Company can either surrender the permit or commit to acquire, process and interpret a minimum of 250 km² of new 3D seismic data by 19 March 2014. Should Octanex carry out the new 3D seismic survey then it must either commit to and drill a well in the permit area by 19 March 2015 or surrender the permit.

Outcomes from the work undertaken to date indicates the presence of two attractive leads within PEP 53473. A potential depth closure has been identified in the south-east corner of the permit that is interpreted to be within the extend of the Kapuni F Sand. It is located updip from the Taranui-1 well, which sampled oil in the overlying Kapuni D Sand. The second lead has been identified at the top North Cape Sand, to the north of Takapou-1. The locations of Taranui-1 and Takapou-1 are shown in the Location Map.

As a result of the encouragement obtained from the identification of the updip Taranui lead, late in the quarter Octanex initiated the reprocessing of an additional 700 km of existing 2D data. The objective of this reprocessing work is to better assess the adequacy and extent of the structural closures so far identified in PEP 53573.

Leads have also been identified within PEP 52593. Further studies are underway in relation to these leads, with the objective of identifying potential source, migration paths and the presence of adequate reservoir sequences that may onlap and drape the structural high that is a feature of this permit. If the results obtained from the additional reprocessed data and studies in this permit and PEP 52593 are encouraging, Octanex will look to acquiring new 3D and 2D seismic programmes in PEP 53473 and PEP 52593 respectively. The commitment to such programmes will first require a suitable seismic vessel to be located.

CORPORATE MATTERS

In-specie Special Dividend

During the quarter, on 10 April, the Company paid a fully franked Special Dividend by way of an in-specie distribution of shares in Cue Energy Resources Limited and Petrel Energy Limited or their equivalent value in cash.

Appointment of a Director

During the quarter, on 16 May, the Company announced the appointment of Mr David C Coombes as an independent non-executive Director of the Company.

Mr Coombes is a commercial and corporate lawyer with 40 years experience in private practice as a

Partly Paid Shares

During the quarter the Directors advised that, pursuant to the Company’s Constitution and with respect to the partly paid shares (ASX code: OXXCB), they had resolved that no call will be made on these shares before 31 March 2014 on account of the unpaid amount of 10 cents per share. The date and amounts of any call or calls that may be made thereafter will be made in accordance with the Constitution, the Corporations Act 2001 and the ASX Listing Rules, as applicable from time to time.

By Order of the Board

J G Tuohy

Company Secretary Melbourne, Australia 27 July 2012

Risk Factors

Various statements in this release constitute statements relating to intentions, future acts and events. Such statements are generally classified as forward looking statements and involve known and unknown risks, expectations, uncertainties and other important factors that could cause those future acts, events and circumstances to differ from the way or manner in which they are expressly or impliedly portrayed in this report. Furthermore, exploration for oil and gas is speculative, expensive and subject to a wide range of risks. Summaries of some of the risks inherent in an investment in Octanex N.L. are set out in the Company’s latest disclosure document (being the prospectus dated 24 September 2010 in support of the Company’s one for four rights issue as lodged with the Australian Securities and Investments Commission). Individual investors should consider these matters in light of their personal circumstances (including financial and taxation affairs) and seek professional advice from their accountant, lawyer or other professional adviser as to the suitability for them of an investment in the Company.

+ See chapter 19 for defined terms.

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Name of entity

OCTANEX N.L.

ABN Quarter ended (“current quarter”)

61 005 632 315 30 JUNE 2012

Consolidated statement of cash flows

Current quarter $A’000

Year to date (12 months) $A’000 1.1 Receipts from joint venture participant

1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration (1,148) (335) (12,897) (1,324) 1.3 Dividends received

1.4 Interest and other items of a similar nature

received 187 1,104

1.5 Interest and other costs of finance paid

1.6 Income taxes paid

1.7 Other

Net Operating Cash Flows (1,296) (13,117)

Cash flows related to investing activities

1.8 Payment for purchases of: (a)prospects (b)equity investments

(c) other fixed assets

(362) (380)

1.9 Proceeds from sale of: (a)prospects (b)equity investments (c)other fixed assets

75 195

1.10 Loans to other entities 1.11 Loans repaid by other entities

1.12 Other – Cash from Acquired Company

Net investing cash flows (287) (185)

1.13 Total operating and investing cash flows

(carried forward) (1,583) (13,302)

+ See chapter 19 for defined terms.

1.13 Total operating and investing cash flows

(brought forward) (1,583)

(13,302)

Cash flows related to financing activities

1.14 Proceeds from issues of shares, options, etc. 93 7,612 1.15 Proceeds from sale of forfeited shares

1.16 Proceeds from borrowings 1.17 Repayment of borrowings

1.18 Dividends paid (94) (9,022)

1.19 Share issue costs

Net financing cash flows (1) (1,410)

Net decrease in cash held (1,584) (14,712)

1.20 Cash at beginning of quarter/year to date 18,085 31,212 1.21 Exchange rate adjustments to item 1.20 - 1

1.22 Cash at end of quarter 16,501 16,501

Payments to directors of the entity and associates of the directors

Payments to related entities of the entity and associates of the related entities

Current quarter $A'000 1.23 Aggregate amount of payments to the parties included in item 1.2 312

1.24 Aggregate amount of loans to the parties included in item 1.10

1.25 Explanation necessary for an understanding of the transactions

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

+ See chapter 19 for defined terms.

Financing facilities available

Add notes as necessary for an understanding of the position.

Amount available $A’000

Amount used $A’000 3.1 Loan facilities

3.2 Credit standbyarrangements

Estimated cash outflows for next quarter

$A’000

4.1 Exploration and evaluation 600

4.2 Development

4.3 Production

4.4 Administration 350

Total 950

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.

Current quarter $A’000

Previous quarter $A’000

5.1 Cash on hand and at bank 778 720

5.2 Deposits at call 15,723 17,365

5.3 Bank overdraft - -

5.4 Other (provide details) -

Total: cash at end of quarter (item 1.22) 16,501 18,085

Changes in interests in mining tenements

Tenement reference Nature of interest (note (2)) Interest at beginning of quarter Interest at end of quarter 6.1 Interests in mining tenements relinquished, reduced or lapsed

See Activity Report Section

6.2 Interests in mining tenements acquired or

increased See Activity Report Section

+ See chapter 19 for defined terms.

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates. Total number Number quoted Issue price per

security (see note 3) (cents)

Amount paid up per security (see note 3) (cents) 7.1 Preference +_securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions 7.3 +_Ordinary securities 152,127,398 74,278,910 33,000,000 152,127,398 74,278,910 - - 25 cents - - 15 cents - 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs 922,999 (922,999) 922,999 (922,999) 25 cents 25 cents 25 cents 15 cents 7.5 +_Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted 7.7 Options (description and conversion factor) 500,000 - Exercise price 45 cents Expiry date 30/09/2013 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter 7.11 Debentures (totals only) 7.12 Unsecured notes (totals only)

+ See chapter 19 for defined terms.

Compliance statement

1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).

2 This statement doesgive a true and fair view of the matters disclosed.

Sign here: ... Date: 27/07/12 (Company Secretary)

Print name: J.G. TUOHY

Notes

1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2. 3 Issued and quoted securities. The issue price and amount paid up is not required in

items 7.1 and 7.3 for fully paid securities.

4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International

Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.