New York Shale Update

EMPIRE ENERGY GROUP LIMITED Level 7, 151 Macquarie Street Sydney NSW 2000

T: 02 9251 1846

F: 02 9251 0244 (ASX: EEG) (OTCQX: EEGNY)

ASX Announcement - New York Shale Update

16 January 2012

SHALE FRACTURING - NEW YORK STATE END OF SGEIS PUBLIC COMMENT PERIOD

Empire Energy Group Limited (Empire) is pleased to announce that the New York Department of Environmental Conservation (DEC) has concluded the public comment period of the Supplemental Generic Environmental Impact Statement (SGEIS) process. The DEC will now review the comments that have been submitted before releasing the final SGEIS and associated regulations. It is believed that the DEC will commence issuing permits for high volume hydraulic fracturing prior to mid-year 2012.
The Company has a significant land position of approximately 303,000 acres in New York State of which approximately 220,000 acres are in the Marcellus and 180,000 acres in the Utica shale fairway of Western New York State.

ABOUT EMPIRE ENERGY GROUP LIMITED

In early 2007, the Company established Empire Energy USA, LLC and currently holds around 96.5% of its issued capital. Empire Energy USA is an oil and natural gas producer. It has operations in Appalachia (New York and Pennsylvania) and the Central Kansas Uplift (Kansas).
In addition, the Company holds Exploration Licence Applications for approximately 14.5 million acres of potential large scale shale oil and gas exploration targets in the Northern Territory, Australia.
Empire Energy implemented a US$100 million credit facility with Macquarie Bank Limited in early 2008 for the sole purpose of acquiring and developing oil and gas assets in the USA. This facility has been increased to US$150 million.
For more information: Bruce McLeod
Executive Chairman
Empire Energy Group Limited
[phone]