December Quarterly Activity and Cashflow Report

ASX Release Date: 25 January 2012

December Quarterly Activity Report

Highlights

? Tamaska and its Alberta Joint Venture (AJV) partners execute a sale and farm-in agreement covering over 19,200 acres of their Duvernay Shale and Rock Creek acreage in Alberta, Canada

? Canadian petroleum company acquiring an 80% interest in 30 land sections for C$20m cash

(Tamaska's share: ~C$1.6m/$1.7m), and carried for the first two Duvernay wells

? AJV still retains full interest in 111 gross sections of its Rock Creek and Duvernay Shale acreage, from 141 sections originally held (79% acreage retained)

? Annual General Meeting - all resolutions approved including the change of Company name to

Tamaska Oil and Gas Ltd

Signing of first Canadian Asset Deal

On 13 December 2011 the Company announced that it is was to realise an immediate cash injection of C$1.6m following the execution of a letter of intent (LOI) for a sale and farm-in agreement on 30 sections of the Alberta Joint Venture's Duvernay Shale and Rock Creek acreage. The LOI and subsequent formal agreements were signed with a well-credentialed Calgary petroleum exploration and production company, which provides the AJV with industry experienced partner with strong capital support to develop the Duvernay and Rock Creek projects.
Following settlement of the transaction expected in late January, the AJV will still retain a full interest in
111 gross sections of its Rock Creek and Duvernay Shale acreage, from 141 sections originally held (79%
acreage retained).
Under the sale and farm-in agreement, the investor will acquire an 80% interest in 30 sections (19,200 acres) in the Duvernay and Rock Creek fairway for a total of C$20 million in cash. Tamaska's share of this will be ~C$1.6 m ($1.7m). Tamaska holds an 8% interest in the Duvernay Shale project and a 16% interest in the Rock Creek project.
The Joint Venture partners will also be free-carried through the first two wells drilled on the Duvernay. The first is a vertical well to be drilled in 2012 at an estimated cost of C$5 million. The second well, an optional horizontal well, is to be drilled during the 2013 drilling season with the AJV carried for the first C$15 million of expenditure. The Joint Venture's total exposure to drilling costs on the horizontal well above C$15m is capped at $1m.
In addition, the investor has agreed to fund its pro rata 80% share of a Rock Creek horizontal well within 2 years of execution of the LOI, or return the Rock Creek rights in the lands to the AJV.
Following completion of the transaction, the AJV retains a 20% interest in the 30 sections (19,200 acres) subject to this transaction and 100 % of the remaining 111 sections (70,300 acres). The AJV partners are continuing to evaluate proposals received on their other acreage through the process undertaken with Macquarie Tristone.

| ASX Release |

Lyons Point Exploration Prospect

During the quarter the Company funded a 10% working interest in the drilling of the initial Lyons Point prospect exploration well. Pruitt et al #1 well was drilled to total depth on 21 November 2011 and did not encounter commercial hydrocarbons. The well was plugged and abandoned on 24 November 2011 and the Company will not pursue any further investments on this project.

Corporate

During the quarter the Company held an Annual General Meeting on 28 November 2011, at which all resolutions were passed unanimously including the change of Company name to Tamaska Oil and Gas Ltd.

Cash Position at 31 December 2011

The Company had a closing cash balance of $952k at 31 December 2011.

For and on behalf of the Board

Level 21, Allendale Square 77 St Georges Tce Perth WA 6000 | PO Box Z5446, St Georges Tce Perth WA 6831

Tel: [phone] | Fax: [phone] | Email : [e-mail] | www.tamaska.com.au

Appendix 5B Mining exploration entity quarterly report

Appendix 5B Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Name of entity

Tamaska Oil & Gas Ltd

Rule 5.3

ABN Quarter ended ("current quarter")

66 127 735 442 31 December 2011

Consolidated statement of cash flows

Cash flows related to operating activities

1.1 Receipts from product sales and related debtors

1.2 Payments for (a) exploration & evaluation

(b) development

(c) production

(d) administration

1.3 Dividends received

1.4 Interest and other items of a similar nature

received

1.5 Interest and other costs of finance paid

1.6 Income taxes paid

1.7 Other - transaction costs

Net Operating Cash Flows

+ See chapter 19 for defined terms.

30/9/2001 Appendix 5B Page 1

Appendix 5B

Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	143	(1,136)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (over subs & capital raising expenses) Net financing cash flows	? ? ? ? ? (37)	1,820 ? ? ? ? (37)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (over subs & capital raising expenses) Net financing cash flows	(37)	1,783
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter	106 861 (15)	647 320 (15)
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter	952	952

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

Current quarter

$A'000

1.23 Aggregate amount of payments to the parties included in item 1.2 136

1.24 Aggregate amount of loans to the parties included in item 1.10 ?

1.25 Explanation necessary for an understanding of the transactions

Consulting fees, directors' fees and payment for share of corporate administration costs paid to related entities.

Non?cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

None

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

None

+ See chapter 19 for defined terms.

Appendix 5B Page 2 30/9/2001

Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities

3.2 Credit standby arrangements

Estimated cash outflows for next quarter

4.1 Exploration and evaluation

4.2 Development

4.3 Production

4.4 Administration

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed

6.2 Interests in mining tenements acquired or increased

+ See chapter 19 for defined terms.

30/9/2001 Appendix 5B Page 3

Appendix 5B

Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

7.12 Unsecured notes

(totals only)

+ See chapter 19 for defined terms.

Appendix 5B Page 4 30/9/2001

Appendix 5B Mining exploration entity quarterly report

Compliance statement

1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

2 This statement does give a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: 25 January 2012 (Executive Director)

Print name: Brett Mitchell

Notes

1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items

6.1 and 6.2.

3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.

4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries

and AASB 1026: Statement of Cash Flows apply to this report.

5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

+ See chapter 19 for defined terms.

30/9/2001 Appendix 5B Page 5