Ground Floor

1292 Hay Street

West Perth WA 6005

T +61 (0) 8 9389 2000

F +61 (0) 8 9389 2099

E info@grandgulf.net
www.grandgulfenergy.com

ABN 22 073 653 175

ASX GGE/GGEO

ASX/Media Release 3 January 2012

GRIZZLY PROSPECT UPDATE: MULTIPLE GAS SHOWS

• Gas shows in 5 intervals including the primary objective; Alliance.

• Grizzly prospect is drilling ahead at 12,430ft

• Grizzly is targeting up to 100 BCFG and 2 MMBC (mid case 45 BCF and 914 MBC).

• Well is anticipated to reach total depth within the next week.

SL 19965 well, Grizzly Prospect, Cameron Parish, LA, 5.25% WI, Non Operator

The Board is pleased to advise that the Grizzly well is presently drilling ahead at 12,430ft under a turnkey drilling contract with Drilling Risk Management Incorporated. The well has intersected 5 separate gas shows including the Alliance sand between 11,382