Quarterly Report to Shareholders 30 June 2013

QUARTERLY REPORT TO SHAREHOLDERS

30 June 2013

SUMMARY

CAMBAY PSC (OPERATOR & 45%), ONSHORE GUJARAT, INDIA

·; The Management Committee approved the Cambay Work Program and Budget for the year ending 31 March 2014.

·; Tendering and evaluation of bids for equipment and materials to be used on Cambay-77H continues as planned and are anticipated to close in August.

·; A firm drilling schedule will be compiled after evaluation of the tenders is complete.

JPDA 06-103 PSC (10% & OPERATOR), OFFSHORE TIMOR SEA

·; In accordance with a condition of the JPDA 06-103 PSC extension, a Letter of Intent to Award a Contract ("LOI") for a Drilling Rig was lodged with the ANP by the 15 June 2013. The LOI was dependent on security of tenure being resolved.

·; Subsequent to the reporting period Oilex Ltd as Operator, on behalf of the Joint Venture Participants to the JPDA 06-103 PSC, submitted to the Autoridade Nacional do Petróleo ("ANP") a request to terminate the PSC by mutual agreement in accordance with its terms and without penalty or claim due to the ongoing uncertainty in relation to security of tenure.

SPA- 0055 (100% & Operator) CANNING BASIN, WESTERN AUSTRALIA

·; The Company announced on 19 April 2013 that it had accepted an offer for Special Prospecting Authority with Acreage Option (SPA/AO) which may partially cover the Wallal Graben in the Canning Basin, Western Australia. The total land area covered by SPA-0055 is 11,400 km2 (~2,800,000 acres).

·; As a result of a number of Australian and international energy companies expressing an interest in the area, the Company initiated an internally managed potential farm out process for SPA-0055, as announced on 25 July 2013.

OVERVIEW

Oilex continues its transition to becoming a leading unconventional oil and gas producer. The company is focused on projects throughout the Indian Ocean Rim where a clear first mover advantage to assets with significant tight reservoir potential exists. During the quarter, regulatory approvals for the Cambay Field Work Program and Budget to the end of March 2014 were received. The tendering process for the drilling rig and drilling services commenced and is progressing through the Joint Venture contracting and procurement process as planned.

OPERATIONS REVIEW

HEALTH, SAFETY, SECURITY AND ENVIRONMENT

No Lost Time Incidents were recorded for Oilex personnel or contractors at any location during the quarter.

CAMBAY FIELD, GUJARAT, INDIA

(Oilex: Operator and 45% interest)

During the reporting period:

·; The Cambay Field produced 934 barrels of oil (420 barrels net to Oilex).

·; The Management Committee approved Cambay Work Program and Budget for the year ending 31 March 2014.

·; Oilex monitored the performance of the wells that had been worked-over during the previous quarter. Cambay 72 has shown a marginal increase to production while Cambay 19z and Cambay 74 have failed to respond.

·; 11 tender packages related to drilling and completion services have been issued with a further 4 tender packages relating to testing and facilities still be issued. Tenders are anticipated to close during August. Subsequent to bid evaluation a firm drilling schedule for Cambay-77H will be compiled.

·; The Gas Sales Agreement ("GSA") for Cambay-73 future production continues to be processed by the Government. The Joint Venture is ready to commence preparatory work and restart production upon endorsement of the GSA by the Government.

·; Oilex commenced discussions during the quarter with potential farm in partner(s) to the Cambay PSC.

Subsequent the reporting period:

·; A Technical Committee Meeting was held on the 17 July 2013 whereby the basis of well design for Cambay-77H was agreed with the Joint Venture partner GSPC. In addition to the well design, a "plug & perf" fracture stimulation system was agreed. The "plug & perf" system is a more robust and simplified technique for multi-stage fracture stimulations and appropriate for wells in Cambay. This approach is consistent with the independent engineering report recommendations arising from Cambay-76H operational review.

BHANDUT FIELD, GUJARAT, INDIA

(Oilex: Operator and 40% interest)

·; Oilex is continuing to investigate commercial options to realise value from this asset with its Joint Venture partner, GSPC including the possible sale of off-spec gas from Bhandut-3, through GSPC's wholly owned gas distribution subsidiary.

·; A 3.5m reservoir section in Bhandut-3 was flow tested during February 2012 and produced gas at peak rate of approximately 1.13 MMscfd before declining to a stabilised flow exceeding 0.5MMscfd.

SABARMATI FIELD, GUJARAT, INDIA

(Oilex: Operator and 40% interest)

·; The Sabarmati Field produced 865 barrels of oil (346 barrels net to Oilex) during the reporting period.

JPDA 06-103, TIMOR SEA

(Oilex: Operator and 10% interest)

During the reporting period:

·; A Letter of Intent to award a drilling rig contract was lodged with the ANP in accordance with one of the conditions of the PSC extension. The LOI was dependant on security of tenure over the PSC.

Subsequent to the reporting period:

·; Oilex Ltd as Operator on behalf of the Joint Venture Participants to the Joint Petroleum Development Area ("JPDA") 06-103 Production Sharing Contract ("PSC"), submitted to the Autoridade Nacional do Petróleo ("ANP") a request to terminate the PSC by mutual agreement in accordance with its terms and without penalty or claim. The request to terminate arose due to the uncertainty surrounding tenure following the initiation of formal arbitration proceedings by the Timor Leste Government against the Government of Australia to have the Certain Maritime Arrangements in the Timor Sea declared void.

West Kampar PSC, Central Sumatra, INDONESIA

(Oilex: 45% interest and further 22.5% secured*)

·; Oilex continues to pursue a commercial resolution to the Joint Venture dispute in parallel with considering options to enforce its Arbitration Award in Jakarta.

 *See note to Asset Schedule

SPA-0055 Wallal Graben, CANNING BASIN, WESTERN AUSTRALIA

(Oilex: 100% interest)

·; Farm out process initiated during the quarter

·; Presentation made to the Indigenous Native title holders

·; Updated Environmental Management Plan for the airborne survey has been submitted

New Opportunities

During the reporting period:

·; The Company announced that it had submitted two bids for L12-08 and L12-09 gazettal blocks which cover the remainder of the Wallal Graben. These competitive bids are currently being evaluated by the Department of Minerals and Petroleum of Western Australia. The total land area covered by the two gazettal blocks is 6,444km2 (~1,600,000 acres).

·; The Company continued to review and evaluate suitable tight hydrocarbon projects that are consistent with its Indian Ocean Rim strategy.

CORPORATE

·; At the end of the quarter the Company retained a cash position of A$3.6 million.

·; The Company continues to pursue its cost reduction program in conjunction with the rationalization and reinvigoration of its asset portfolio.

The Company's website www.oilex.com.au is regularly updated with current information.

(1) Oilex (West Kampar) Limited is entitled to have assigned an additional 22.5% to its holding through the exercise of its rights under a Power of Attorney granted by SPE following the failure of SPE to repay funds due. The assignment has been provided to BPMigas (now MiGas) but has not yet been approved or rejected. If Oilex is paid the funds due then it will not pursue this assignment.

LIST OF ABBREVIATIONS AND DEFINITIONS

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.

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/01, 1/6/10, 17/12/10, 01/05/13.

Name of entity

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.

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

Robert Ierace Date: 31 July 2013

CFO & Company Secretary