Half Yearly Report

 Spitfire Oil Limited

60 St James's Street, London SW1A 1LE, United Kingdom

Telephone: + 44 (0)20 7629 7774 Facsimile: + 44 (0)20 7629 7773

9th March 2012

INTERIM STATEMENT FOR THE SIX MONTHS ENDED 31st DECEMBER 2011

Spitfire Oil Limited ("Spitfire" or "the Company") is pleased to publish a copy of its unaudited interim results for the six months ended the 31st December 2011, a summary of which is attached.

Introduction

Spitfire and its subsidiaries (together "the Group") recorded a loss before tax for the six months ended the 31st December 2011 of A$211,889 (2010: A$189,684). With cash balances of A$7.5m, the Group has benefited from interest receipts of A$181,000 in the period.

Spitfire has continued to monitor the technologies available for processing the Salmon Gums lignite into a saleable gas or distillate. Several proposals have been investigated during the year but the Board is yet to be convinced that any are commercially viable. However, as world fuel prices continue to rise, several technologies are emerging. The Company remains convinced that being patient until a suitable process is developed is the prudent course of action. Accordingly, Spitfire has continued conducting work to maintain the exploration licences in good standing while looking at other investment proposals and maintaining its cash funds. Several new proposals were progressed during the year but they either failed to meet the Company's investment criteria or failed to come to fruition.

Licence Management

As outlined in the 2010 Annual Report, the Salmon Gums exploration licences were successfully extended until the 6th July 2012. Application for a retention licence over the area of the defined lignite resource was applied for on the 20th October 2011 and covers an area of 23,749 hectares. Retention licences are granted where a mineral resource has been identified but where the mining and processing is not currently viable. They are issued for a period of 5 years, are renewable and, apart from annual rent, have minimal expenditure requirements.

The following table shows the current status of the Salmon Gums Project licences pending grant of a retention licence.

Note: Rent and expenditure commitments for the Retention Licence Application cannot be set until approved

Gold Programme

Following the successful identification of an area of anomalous gold mineralization in the project area in 2009-2010, an attempt was made to locate a suitable joint venture partner to share the risk of ongoing exploration. With no suitable partner found, Spitfire continued with further gold exploration during 2011 as part of the minimum expenditure requirements of the licences.

The gold exploration program consisted of drilling further reconnaissance holes over theoretical targets in each of the licences, although one area was omitted due to logistical concerns. The results were disappointing in that most of the anomalous indicators were found to be insignificant. Given these results, it was decided that Spitfire should discontinue further gold exploration in the area.

Spitfire Oil Limited

Mladen Ninkov - Chairman Telephone: +44(0)20 7629 7774

Roger Goodwin - Director

Panmure Gordon (UK) Limited Telephone: +44 (0)20 7459 3600

Dominic Morley

Hannah Woodley

Spitfire Oil Limited's shares are quoted on the Alternative Investment Market (AIM)

 of the London Stock Exchange (symbol SRO).

The Company's news releases are available on the Company's web site: www.spitfireoil.com

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

SPITFIRE OIL LIMITED

Notes to the CONDENSED CONSOLIDATED financial statements

NOTE 1: BASIS OF PREPARATION OF THE HALF-YEAR FINANCIAL REPORT

This condensed consolidated interim financial report for the half-year reporting period ended 31 December 2011 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001.

The summary accounts set out above do not constitute statutory accounts as defined by Section 84 of the Bermuda Companies Act 1981 or Section 435 of the UK Companies Act 2006. The condensed consolidated statement of financial position at 30 June 2011 and the condensed consolidated statement of comprehensive income, condensed consolidated statement of changes in equity and the condensed consolidated statement of cash flows for the year then ended have been extracted from the Group's 2011 statutory financial statements upon which the auditors' opinion is unqualified. The condensed consolidated statement of comprehensive income has been prepared using information extracted from the Group's 2011 statutory financial statements.

This condensed consolidated interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2011 and any public announcements made by Spitfire Oil Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

Copies of this interim report are being sent to all registered shareholders. Additional copies are available from the Company's London office, 60 St James's Street, London, SW1A 1LE.

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.

The Group has reviewed all new Standards and Interpretations that have been issued but are not yet effective for the half-year ended 31 December 2011. As a result of this review the Directors have determined that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change necessary to Group accounting policies.

NOTE 2: SEGMENT INFORMATION

The Group operates in predominantly one operating segment, being the exploration and mining for valuable resources that produce energy in Australia.

NOTE 3: DIVIDENDS

The Company has not declared any dividends in the period ended 31 December 2011.

NOTE 4: CONTINGENCIES

There has been no change in contingent liabilities or contingent assets since the last annual reporting date.

SPITFIRE OIL LIMITED

Notes to the CONDENSED CONSOLIDATED financial statements

NOTE 5: ISSUED CAPITAL

NOTE 6: LOSS PER SHARE

Options that are considered to be potential ordinary shares are excluded from the weighted average number of ordinary shares used in the calculation of basic loss per share. Where dilutive, potential ordinary shares are included in the calculation of diluted loss per share.

All the options on issue do not have the effect to dilute loss per share. Therefore they have been excluded from the calculation of diluted loss per share. There have been no other conversions to, call of, or subscriptions for ordinary shares since the reporting date and before the completion of this report.

NOTE 7: NET TANGIBLE ASSETS

NOTE 8: SUBSEQUENT EVENTS

No matter or circumstance has arisen since 31 December 2011, which has significantly affected, or may significantly affect the operations of the Group, the result of those operations, or the state of affairs of the Group in subsequent financial years.