2 September 2011

Companies Announcement Office Australian Securities Exchange Exchange Centre

20 Bridge Street

Sydney NSW 2000

Lapse of Employee Share Options

We wish to advise that 3,000,000 unlisted employee share options issued by the

Company with an expiry date of 1 September 2011 have lapsed unexercised. Please find attached an updated Appendix 3B.

Belinda Flatters

Company Secretary

Pan Pacific Petroleum NL ACN 000 749 799

Level 2, 123 Walker Street, North Sydney 2060 Australia Tel: +61 2 9957 2177 Fax: +61 2 9925 0564 www.panpacpetroleum.com.au

Appendix 3B New issue announcementAppendix 3B

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

New issue announcement,application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX

become ASX’s property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003, 24/10/2005.

Name of entity

Pan Pacific Petroleum NL

ABN

69 000 749 799

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of +securities issued or to be issued

2 Number of +securities issued or to be issued (if known) or maximum number which may be issued

3 Principal terms of the +securities (eg, if options, exercise price and expiry date; if partly paid

+securities, the amount

outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)

+ See chapter 19 for defined terms.

24/10/2005Appendix 3B Page 1

Appendix 3BNew issue announcement

4 Do the +securities rank equally in all respects from the date of allotment with an existing +class of quoted +securities?

If the additional securities do not rank equally, please state:

• the date from which they do

• the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment

• the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

5 Issue price or consideration

6 Purpose of the issue

(If issued as consideration for the acquisition of assets, clearly identify those assets)

7 Dates of entering +securities into uncertificated holdings or despatch of certificates

8 Number and +class of all

+securities quoted on ASX

(including the securities in clause 2 if applicable)

+ See chapter 19 for defined terms.

Appendix 3B Page 2 24/10/2005

Appendix 3B New issue announcement

9 Number and +class of all

+securities not quoted on ASX

(including the securities in clause 2 if applicable)

10 Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)

Part 2 - Bonus issue or pro rata issue

11 Is security holder approval required?

12 Is the issue renounceable or non