Kairiki Executes $10MM Convertible Note

Further to Kairiki Energy Limited's announcement on August 29, 2008, Kairiki has now executed formal documentation with IMC Oil & Gas Investments Ltd., part of the IMC Group, in relation to the US $10,000,000 Convertible Note raising described in that announcement.

Kairiki has satisfied all the conditions required to the drawdown of the first US $8,500,000 of the US $10,000,000 facility with the remaining US $1,500,000 subject to shareholder approval, scheduled for mid October 2008.