Mr. Chayan Chakrabarty reports

BENGAL ENERGY LTD. ENTERS INTO LOAN WITH TEXADA CAPITAL MANAGEMENT LTD. TO FUND ERC BONDING REQUIREMENTS

Bengal Energy Ltd. has entered into a promissory note with Texada Capital Management Ltd., a company controlled by W.B. (Bill) Wheeler, pursuant to which Texada has agreed to advance $1,145,000 to the company. Mr. Wheeler is a director of Bengal, and owns or controls (directly or indirectly) 398,679,364 common shares of Bengal, being approximately 82.2 per cent of the issued and outstanding common shares.

As previously disclosed by the company, recent changes to the Queensland, Australia, regulations allow the operator of the company's Barta joint venture, which includes the producing Cuisinier asset, to share the operator's estimated rehabilitation cost bonding requirements (associated with environmental authorities for petroleum tenements in Queensland) with joint venture partners. The proceeds of the Texada loan will be used to finance the company's joint venture share of such ERC bonding requirements. The company expects to seek to raise additional financing, or to seek to enter into an alternative insurance bonding arrangement, for the purpose of realizing sufficient funds to repay the Texada loan.

The Texada loan is structured as a demand promissory note, having a maturity date of one year from the date of advance and bearing interest at 12 per cent per annum, payable quarterly. The Texada loan is secured by a first-priority security interest over all of Bengal's present and after-acquired personal property other than the shares of its wholly owned subsidiary, Bengal Energy (Australia) Pty. Ltd. Bengal may at any time prepay the principal sum owing under the Texada loan, in whole or in part, without any notice or penalty, provided that any such prepayment shall be in a minimum amount of $200,000.

About Bengal Energy Ltd.

Bengal is an international oil and gas exploration and production company with producing and prospective light oil-weighted onshore assets in Australia's Cooper basin. Bengal offers unique exposure to high-potential impact exploration and development projects underpinned by lower-risk current production and cash flow. The company's production stream consists predominantly of ultralight, sweet crude oil (52-degree API) out of Australia, which commands a premium price to the Brent benchmark.

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