Unexercised Options Cancelled by Elixir

At the end of the March 2008 quarter, Elixir Petroleum held cash on hand of approximately $5.4m.

In January 2008, Elixir issued 8.57 million unsecured convertible loan notes to Macquarie Bank Limited raising $3.0 million. The loan notes have a conversion price of $0.35 and a 12 month term to expiry from the date of issue.

Options issued to former Gawler optionholders as part of the merger between Elixir and Gawler expired on 5 February 2008. These options were exercisable at $0.001 per option. At the date of expiry, the Company had received valid exercise notices from optionholders representing approximately 97% of the total options on issue. Those options that remained unexercised at the expiry date were cancelled.