AED Oil Limited : Capital Raising - Issue of First Tranche Placement

Level 20, 8 Exhibition Street, Melbourne VIC 3000 Australia T [phone]

F [phone]

PO Box 18199

Collins Street East

VIC 8003 Australia

AED Oil LimitedACN 110 393 292

19 July 2011

Capital Raising - Issue of First Tranche Placement Shares

AED welcomes the completion of the allotment and issue of “First Tranche Placement”

shares, being the first stage of the capital raising outlined in the ASX release on 8 July

2011. Thirty (30) million shares in AED have been issued to sophisticated and professional investors introduced by Sprott Private Wealth L.P. at an issue price of 7.5 cents, for a total consideration of $2.25 million.

AED is proceeding with documentation associated with the other transactions announced in that release (including rights issue documentation and the notice of Extraordinary General Meeting). The funds received to date form part of the total capital raising of up to $21.25 million which is expected to see the completion of AED's 2011 capital program. These funds will be specifically utilised for the exploration and development plans outlined in the ASX Announcement of 8 July.

It is expected that the Extraordinary General Meeting will be held in early to mid September. Please refer to the attached Appendix 3B for further details.

Trevor SlaterCompany SecretaryMedia Contacts:

Richard Little – Chief Financial Officer [phone]