Elixir: New Mineral Assets in Northern Territory and South Australia

Following the completion of the merger with Gawler Resources, Transition Resources Limited ("Transition"), a wholly owned subsidiary of Elixir Petroleum, now holds a number of mineral licences located in the Northern Territory and South Australia. The directors of Elixir had investigated the opportunity to demerge Transition from the Elixir Group and for Transition to undertaking a capital raising and to seek the admission of its shares to trading on the ASX.

After discussions with a number of market participants, and cognisant of the number of IPO's that have not proceeded or have been postponed in the past 6 months, the directors have formed the view that in light of current weakness in the Australian equity market for new mineral resource public offerings, a successful IPO of Transition would not be achievable.

To that end the directors have engaged the services of a corporate finance adviser to market the assets on the Company's behalf.