RIGHTS PROSPECTUS DATED 24 MARCH 2009

On 24 March 2009 OIL BASINS LIMITED (ACN 006 024 764) lodged a Prospectus for for a pro-rata renounceable rights issue of approximately 59,575,661 New Shares and 19,858,553 New Options on the basis of three (3) New Shares for every two (2) Shares held on the Record Date of 2 April 2009 at an issue price $0.01 per New Share, with one (1) free attaching New Option (each with an exercise price of $0.015 (1.5 cents) and an expiry date of 30 June 2012) for every three (3) New Shares issued, to raise approximately $595,757.

Applicants should note that subject to approval of a General Meeting to be held on or about 28 April 2009, the Company will issue up to a total of 12,500,000 New Options to sub-underwriters to the Offer, (the “Sub-Underwriter Commitment Options”) and that the Underwriting commitment from Patersons Securities Limited is conditional on that approval being given and the Sub-Underwriter Commitment Options being granted.

The Prospectus linked to from this page is a copy and does not contain the Application form. Each Eligible Shareholder will be forwarded their own copy of the Prospectus. The number of New Shares and New Options to which you, if an Eligible Shareholder are entitled, will be shown on the personalised Entitlement and Acceptance Form which accompanies your copy of the Prospectus.

Fractional Entitlements will be rounded down to the nearest whole New Share and New Option. Eligible Shareholders may subscribe for all or part of their Entitlement, renounce their entitlement by selling or transferring same or allow their Entitlement to lapse. Eligible Shareholders may apply for New Shares and New Options in excess of their Entitlement.

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