Commencement of Drilling

28 May 2012

Jubilant Energy NV

("Jubilant" or "the Company")

Jubilant spuds the Matabari-1 Exploration well in the southern part of the Tripura block

Jubilant is pleased to announce that the Matabari-1 well was spudded on 25 May, 2012 in the Tripura block. This is the firstexploratory well to be drilled under Exploration Phase-II in the block. The well is located 3.3 kilometres east-southeast and up-dip from the Phase-I exploratory well Kathalchari-1 and 5.5 kilometres southeast and up-dip of the second Phase-I appraisal well KL-NE.

The Matabari-1 will be a vertical well, planned to be drilled to a total depth of 4,070 metres Measured Depth ("MD") and is estimated to take approximately four months to drill.

Matabari-1 is proposed to explore the hydrocarbon potential of the Lower Miocene Lower Bhuban and Late Oligocene Renji sands as primary objectives and the Middle Bhuban sands as a secondary objective.This will be the first exploratory well in the Block targeting deeper objectives beyond the Middle Bhuban.

The second appraisal well to the Kathalchari-1 discovery, KL-NE, spudded on 21 February 2012, was drilled to a depth of 3,200 metres MD compared to a planned target depth of 2,990 metres MD. Based on mud log and petrophysical interpretations, seven gas bearing sand intervals of interest, including the Kathalchari discovery equivalent sands, have been identified in the Middle Bhuban formation in this well, totalling approximately 146 metres gross thickness. Jubilant is now planning to test these zones in a sequential manner with a work-over rig, expected to commence in June 2012. A further announcement will be made subsequent to the completion of testing.

Jubilant holds a 20% participating interest in this block through its subsidiary Jubilant Oil & Gas Private Limited, India which is also the Operator for the block. GAIL India Limited holds the remaining 80% participating interest.

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Competent Person's - Consent for Release

Mr Ramesh Bhatia, Vice President (Exploration), holds a Master's of Science degree in Applied Petroleum Geology and has over 20 years of experience in the Oil and Gas Exploration, Development and Production industry. He has reviewed and approved the technical information contained in this announcement pursuant to the AIM guidance note for mining and oil and gas companies.