Placement to Raise $3.4 Million

30 August 2013

Oilex Ltd (ASX: OEX, AIM: OEX, Oilex) is pleased to announce that it has successfully raised $3.4 million through the placement of new shares ("New Shares") to domestic and international Sophisticated and Professional Investors ("Placement"). The Placement was undertaken by Joint Lead Managers DJ Carmichael Pty Limited and Patersons Securities Limited, with RFC Ambrian acting as arranger in the UK.

The Placement was priced at $0.05 per share, a 17% discount to the 30-day VWAP of $0.0602. The placement also consisted of a one for two attaching listed option (ASX:OEXO) with a strike price of $0.15 expiring on 7 September 2015. The bookbuild was supported by new and existing Oilex shareholders and closed oversubscribed.

The Placement will be conducted in two tranches. The first tranche will utilise the Company's available 15% placement capacity under ASX Listing Rule 7.1 which will total 38 million New Shares raising $1.9 million. The remaining 30 million New Shares will be issued in the second tranche subject to shareholder approval which will be sought at an Extraordinary General Meeting ("EGM") scheduled to be held as soon as practicable. The issue of all of the attaching Placement options will also be subject to shareholder approval at the EGM.

The New Shares will rank equally with existing shares from allotment. Settlement of the first tranche of the Placement is expected to take place on Thursday 5 September 2013, with allotment expected on Friday 6 September 2013. Application will be made for admission of the New Shares to trading on the ASX and AIM, with trading in the first tranche expected to commence on AIM on or around 6 September 2013.

Along with existing cash and the recently announced Cambay Equity sale agreement, Oilex will emerge with circa $9 million in cash at the completion of the Placement. Proceeds raised from the Placement will be used for costs associated with the Cambay Development PSC including the drilling of the Cambay 77H Offset Well targeted for the December quarter 2013. Cambay has an independently certified 2C Contingent Resource in place of 37 million barrels of oil and 222 BCF Gas (net attributable to Oilex) prior to the Cambay Equity Sale Agreement.

Funds will also be used for a low level work program in the Canning Basin as potential farm out discussions continue and for working capital purposes.

Ron Miller, a director of Oilex, intends to participate in the Placement, subscribing for 1 million shares for a consideration of $50,000, subject to shareholder approval at the EGM and any required regulatory approvals. His total holding following the Placement and receipt of shareholder approval will be 4,379,436 shares representing 1.03% of the issued capital of Oilex Ltd post Placement.

 Commenting on the Placement, Oilex's Managing Director, Ron Miller, said

"We are very pleased with the strong support shown for the Placement and delighted to welcome the new investors including a number of Australian based Institutions. This Placement continues to support our ongoing efforts to deliver success and value from Oilex's diversified portfolio, in onshore India and Australia."

For and on Behalf of Oilex Ltd

Ron Miller

Managing Director

For further information, please contact:

Competent Person's Statement

Information in this report relating to hydrocarbon reserves or resources has been reviewed and checked by Mr Peter Bekkers B.Sc. (Hons), the Chief Geoscientist of Oilex Ltd who has over 15 years of experience in petroleum geology and is a member of the Society of Petroleum Engineers and AAPG. Mr Bekkers consents to the inclusion of the information in this report relating to hydrocarbon reserves and resources in the form and context in which it appears. Resource estimates contained in this report are in accordance with the standard definitions set out by the Society of Petroleum Engineers, Petroleum Resources Management System, 2007.

This document may include forward-looking statements. Forward-looking statements include, but are not necessarily limited to, statements concerning Oilex Ltd.'s planned exploration program and other statements that are not historic facts. When used in this document, the words such as "could", "plan", "estimate" "expect", "intend", "may", "potential", "should" and similar expressions are forward-looking statements. Although Oilex Ltd believes that its expectations reflected in these are reasonable, such statements involve risks and uncertainties, and no assurance can be given that actual results will be consistent with these forward-looking statements.