Schedule 1 - Xtract Energy plc

ANNOUNCEMENT TO BE MADE BY THE AIM APPLICANT PRIOR TO ADMISSION IN ACCORDANCE WITH RULE 2 OF THE AIM RULES FOR COMPANIES ("AIM RULES")

COMPANY NAME:

Xtract Energy plc (the "Company")

COMPANY REGISTERED OFFICE ADDRESS AND IF DIFFERENT, COMPANY TRADING ADDRESS (INCLUDING POSTCODES) :

Registered office:

4/F Windsor House

55-56 St James's Street

London SW1 1LA

Trading address:

Fetcham Park House

Lower Road, Fetcham

Surrey KT22 9HD

COUNTRY OF INCORPORATION:

England and Wales

COMPANY WEBSITE ADDRESS CONTAINING ALL INFORMATION REQUIRED BY AIM RULE 26:

www.xtractenergy.co.uk

COMPANY BUSINESS (INCLUDING MAIN COUNTRY OF OPERATION) OR, IN THE CASE OF AN INVESTING COMPANY, DETAILS OF ITS INVESTING POLICY). IF THE ADMISSION IS SOUGHT AS A RESULT OF A REVERSE TAKE-OVER UNDER RULE 14, THIS SHOULD BE STATED:

Xtract International Limited, a wholly owned subsidiary of Xtract Energy announced on 21 June 2011 that it had conditionally offered to acquire all of the issued and to be issued share capital of Elko Energy, Inc ("Elko") not already owned by Xtract International (the "Acquisition"). Xtract already owns approximately 49.97 per cent. of Elko's current issued share capital.

The Acquisition will constitute a reverse takeover pursuant to Rule 14 of the AIM Rules for Companies.

Elko is a Canadian registered oil and gas exploration company which has a direct interest in exploration and production licences in the Danish North Sea and an over-riding royalty interest in licences in the Dutch North Sea. Its major asset in the Danish North Sea is a 33 per cent. working interest in an exploration and production licence 02/05 and a 33 per cent. working interest in an adjoining exploration and production licence 01/11, east of the prolific Central Graben area. Technical work indicates the potential for significant resources on these combined licences. In addition, Elko holds a royalty interest in gas-bearing licence blocks P1 and P2 in the Dutch North Sea.

The Directors believe that the Acquisition will have the effect of strengthening the Group's balance sheet, increasing liquidity in the Enlarged Share Capital and facilitating future decision making with regard to the Danish assets. Elko has operated assets in both the Netherlands and Denmark and completion of the Acquisition will result in this expertise becoming available to the Group. The Elko shareholders will gain liquidity as holders of the Acquisition Shares in the Enlarged Group.

DETAILS OF SECURITIES TO BE ADMITTED INCLUDING ANY RESTRICTIONS AS TO TRANSFER OF THE SECURITIES (i.e. where known, number and type of shares, nominal value and issue price to which it seeks admission and the number and type to be held as treasury shares):

Enlarged share capital of 1,505,210,369 ordinary shares of 0.1 pence each in the Company ("Ordinary Shares") which is comprised of 240,000,000 new Ordinary Shares which have been conditionally placed at 1.25p each, 350,245,343 new Ordinary Shares which will be issued to holders of Elko common stock in consideration for the Acquisition and 914,965,026 existing Ordinary Shares.

There are no restrictions on the transfer of securities.

CAPITAL TO BE RAISED ON ADMISSION (IF APPLICABLE) AND ANTICIPATED MARKET CAPITALISATION ON ADMISSION:

Capital to be raised on Admission: £3.0 million

Market capitalisation (anticipated): £18.8 million

PERCENTAGE OF AIM SECURITIES NOT IN PUBLIC HANDS AT ADMISSION:

Approximately 24.4 per cent.

DETAILS OF ANY OTHER EXCHANGE OR TRADING PLATFORM TO WHICH THE AIM COMPANY HAS APPLIED OR AGREED TO HAVE ANY OF ITS SECURITIES (INCLUDING ITS AIM SECURITIES) ADMITTED OR TRADED:

N/A

FULL NAMES AND FUNCTIONS OF DIRECTORS AND PROPOSED DIRECTORS (underlining the first name by which each is known or including any other name by which each is known):

Directors:

George Edward Watkins (Non-Executive Chairman)

Peter Lemon Moir (Chief Executive Officer)

Alan Douglas Hume (Group Finance Director)

Paul David Butcher (Non-Executive Director)

Proposed Director:

Jeremy Alden Kane (Non-Executive Director)

FULL NAMES AND HOLDINGS OF SIGNIFICANT SHAREHOLDERS EXPRESSED AS A PERCENTAGE OF THE ISSUED SHARE CAPITAL, BEFORE AND AFTER ADMISSION (underlining the first name by which each is known or including any other name by which each is known):

Before Admission:

Post admission:

NAMES OF ALL PERSONS TO BE DISCLOSED IN ACCORDANCE WITH SCHEDULE 2, PARAGRAPH (H) OF THE AIM RULES:

None

(i) ANTICIPATED ACCOUNTING REFERENCE DATE

(ii) DATE TO WHICH THE MAIN FINANCIAL INFORMATION IN THE ADMISSION DOCUMENT HAS BEEN PREPARED (this may be represented by unaudited interim financial information)

(iii) DATES BY WHICH IT MUST PUBLISH ITS FIRST THREE REPORTS PURSUANT TO AIM RULES 18 AND 19:

(i) 31 December;

(ii) 31 December 2010;

(iii) 30 September 2011 (results for interim period ended 30 June 2011); 30 June 2012 (final results for year ended 31 December 2011); and 30 September 2012 (results for interim period ended 30 June 2012)

EXPECTED ADMISSION DATE:

13 September 2011

NAME AND ADDRESS OF NOMINATED ADVISER:

Cenkos Securities plc

6. 7. 8. Tokenhouse Yard

London EC2R 7AS

NAME AND ADDRESS OF BROKER:

Cenkos Securities plc

6. 7. 8. Tokenhouse Yard

London EC2R 7AS

OTHER THAN IN THE CASE OF A QUOTED APPLICANT, DETAILS OF WHERE (POSTAL OR INTERNET ADDRESS) THE ADMISSION DOCUMENT WILL BE AVAILABLE FROM, WITH A STATEMENT THAT THIS WILL CONTAIN FULL DETAILS ABOUT THE APPLICANT AND THE ADMISSION OF ITS SECURITIES:

Copies of the admission document will be available from www.xtractenergy.co.uk.

DATE OF NOTIFICATION:

31 August 2011

NEW/ UPDATE:

NEW