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Operational Update Mako Energy

OPERATIONAL UPDATE HIGHLIGHTS • Re-listed on 24 August 2010, after closing its Prospectus fully oversubscribed after raising $4M. • Acquired Harness Petroleum Inc and 100% ownership of JV assets. • First Production – facilities owned by Harness currently producing 31 bopd, to be increased imminently to 40 bopd. • Provost Project - Favorable weather permitting we expect the facility to be ready for first production in October, 2010. •Production expected to commence within 2 months, targeting aggregate 1000 barrels of oil per day by end of 2010. • Strong pipeline offering a variety of additional growth opportunities under due diligence. Mako Energy Limited ( MKE “Mako”) was re-listed on 24 August 2010 after closing its Prospectus fully oversubscribed raising $4M. On the same day, Mako exercised its option to acquire Harness petroleum Inc (its JV partner) and moved to 100% ownership of the JV assets. In doing so Mako has also acquired its first production revenues. Mako is now pleased to provide the first Operational Update since its re-listing earlier this week. Mako’s initial Project is Provost. Harness Existing Facilities • Production is currently 31 boepd. • The Highvale facility is currently upgrading its bottom hole pump following a recent failure. Restored production (within the next 10 – 14 days) is anticipated to increase the total existing Harness production to at least 40 boepd. • Well data obtained during the servicing has indicated that this well and surrounding proven wells may contain economic upsides from applying enhanced recovery techniques. This is now scheduled for review. Provost • Right of Way access for pipeline easements between the first 3 wells and the battery site have been negotiated, surveyed and acquired. • Oil treating tanks (2 – 750 BBL and 1 – 1000 BBL) have been purchased and are ready for delivery to the construction site next week. • The service rig has now been released at the 5-2 well site after preparing the well for water disposal. The well was acidized and an injection test confirms it is capable of accepting water in excess of our anticipated production rate from the first 3 wells. This avoids the need to deepen the 3-11 well as per original projections with a significant saving in capex. • Application to the regulatory authorities is underway for future approval to deepen the 5-2 well and provide further disposal capacity as the project is expanded over the upcoming months. • Now that the disposal well is ready, the battery site preparation & construction will begin mid next week. • Favorable weather permitting we expect the facility to be ready for first production in October, 2010.