Austin to raise $25 million to fund high impact multi-well drill program at its significant Eagle Ford, Niobrara Shale and Mississippi Wilcox Projects

The Placement is being undertaken at an issue price of 2.9 cents per Share, together with a 1 for 2 free attaching listed option, exercisable at$0.055 cents, expiring on 6 July 2013 (AKKOA). Hartleys Limited is Broker to the Offer.

In addition, Austin will undertake a shareholder share purchase plan ("SPP") which will be capped at $5 million, allowing Austin shareholders registered on Monday 20 February 2012 to subscribe for Shares up to the amount of $15,000 each. The issue price of Shares under the SPP will also be 2.9 cents per Share.

The Placement, which was strongly oversubscribed, is a considerable milestone for the Company, which together with the appointment of Mr Richard Cottee as the new Chairman of Austin on the 22nd March 2012 provides a strong financial platform to expand activities across the Company's Eagle Ford and Niobrara acreage.

The Company intends to use funds raised pursuant to the Placement and SPP to undertake the following activities:

• Drill and complete two vertical wells on the Company's Eagle Ford Shale Project, and complete the recently drilled well on the Eagle Ford Shale Project;
• Drill and complete a single horizontal well in the most prospective of the first three vertical wells drilled on the Company's Eagle Ford Shale Project;
• Drill and complete two horizontal wells on the Company's Niobrara Shale Project; and
• Drill and complete one well at Austin's Mississippi Wilcox project.

Commenting on the success of the Placement, Austin's CEO Mr Guy Goudy said, "We are delighted by the strong support received for the Placement, which was significantly oversubscribed, and strengthensAustin's Share register. We see this as an important step in the transformation of Austin into a significant onshore USA producer of oil and gas and one of the ASX's premier exposures to the highly successfulUSA shale sector. By their subscription Investors have given a resounding endorsement of the decision to appoint Mr Cottee as Chairman thereby accessing his exceptional experience in growing companies in the unconventional onshore oil and gas sector."

Dr Mark Hart, Austin's President and Executive Director, commented, "The tremendous success of this capital raising will fund the Company through a multi well program in 2012, and is a testament to the quality of the assets secured by the Company in 2011. Austin holds a highly prospective portfolio of oil and gas assets onshore USA and with the success of this placement the Company now has the funds to properly evaluate and progress development of these assets."