Buru Energy Overview

Buru Energy will, following the implementation of the Scheme, hold interests in or rights to tenements covering more than 140,000 square kilometres throughout the Canning Basin, in the Kimberley region of northwest Western Australia. The map set out below shows the location of the Canning Basin and the interests in the Canning Basin which will be held by Buru Energy.

Buru Energy will, following the implementation of the Scheme, have approximately $75 million¹ in cash and will conduct a focused exploration and development program in the Canning Basin. Buru Energy will also continue to produce oil from the Blina and associated oilfields and review opportunities to increase production from those fields in the short term.

It is intended that the Buru Energy Board will consist of four directors two of whom will be independent. The current Board comprises the Chairman, Eric Streitberg, who is an experienced petroleum exploration and development executive and was responsible for the assembly of Buru Energy's Canning Basin permit portfolio as the Managing Director of ARC. Adrian Cook, the Managing Director of Buru Energy is currently the Chief Financial Officer of ARC. Graham Riley is an experienced resources company director and has been involved in the successful formation of numerous oil and gas and mineral exploration companies and was a founding director of both ARC and Adelphi Energy.

1. Subject to adjustment by reference to the cash position of ARC as at 30 June 2008. Of this amount, $20 million will be held in escrow under the arrangements with Alcoa for the novation of the Alcoa GSA.