Area of Mutual Interest - 7 Lakes Special Prospecting Authority

In addition to the EP417 farm-in, Green Rock Energy (Green Rock) and New Standard Energy (New Standard) have executed an Area of Mutual Interest (AMI) agreement to jointly pursue additional new exploration opportunities in the Fitzroy Trough in the Canning Basin. Under the terms of this agreement, New Standard is entitled to a 60% working interest and Green Rock a 40% working interest in any jointly pursued exploration acreage awarded within the AMI and each party will pay its share of exploration costs.

In July 2011, New Standard was offered a Special Prospecting Authority (SPA) for the Seven Lakes area in the northern Canning Basin. This new acreage is immediately adjacent to New Standard's EP417 exploration permit (and Lawford#1 well) and when converted to an exploration permit will extend the Company's acreage in the emerging Laurel Project. The Seven Lakes SPA is the first acreage to be acquired under the terms of the AMI.

Upon grant, the SPA will entitle New Standard as operator under the AMI to carry out certain exploration work, subject to various approvals, over a 6 month period. Following the initial 6 month exploration program, New Standard will have an exclusive right for an additional 6 months to exercise an attaching option to apply for an Exploration Permit for New Standard and Green Rock over what it determines to be the most prospective part of the acreage.

The prospective Laurel Formation including the new Seven Lakes SPA, EP417 and various prospects

Source: GRK ASX Announcement, 25 July 2011