LAKES OIL N.L.

A.C.N. 004 247 214

Lakes Oil N.L. ASX Announcement And Media Release 22 June 2012 WILDCAT HOLDGATE-1 WELL AT 2368 METRES

Lakes Oil N.L advises that its Holdgate-1 well, in PEP166 on-shore Gippsland Basin, was at a depth of 2368 metres at 8 o'clock this morning and is drilling ahead.
Drilling will proceed to a proposed total depth of 2500 metres, unless basement is intersected earlier.
Holdgate-1 is being funded by Armour Energy Ltd as part of its program to earn a 51% interest in PEP166.
The objective of this well is to search for oil and gas plays on the massive Baragwanath Anticline in PEP 166 (part of a large surface anticline, stretching 60kms long across PEP166 and PRL 2).
Holdgate-1 has two targets; the primary objective is the Strzelecki Group,
in which LKO encountered "tight gas" in wells drilled so far in the onshore Gippsland Basin, and the secondary objective is the Rintouls Creek Sandstone/Tyers Conglomerate, which LKO believes lies beneath the Strzelecki.

Registered Office: Level14,

500 Collins Street

Melbourne Vic 3000

Ph: +61 3 9629 1566

Robert Annells

Chairman

0416 130 740

Ingrid Campbell

RMIT (Geol.), MPESA, MGSA, AAPG

Chief Geologist

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