Buru Energy Limited

ABN 71 130 651 437

Level 2, 97 William Street

Perth, Western Australia 6000

PO Box 7794, Perth

Cloisters Square WA 6850

Ph: 61-8 9215 1800

Fax: 61-8 9215 1899 www.buruenergy.com

ASX ANNOUNCEMENT (ASX: BRU) 27 January 2012 WEEKLY DRILLING PROGRESS REPORT VALHALLA NORTH-1

Buru Energy Limited ("Buru" or "Company") provides the following weekly update on drilling operations at the Valhalla North-1 well as at 06:00hrs, 27 January 2012 (AWST).
The Valhalla North-1 well is the fifth well in the Buru - Mitsubishi Corporation ("MC") Joint Exploration Program in the Canning Superbasin that commenced in June 2011. Buru and MC each have a 50% interest in the Valhalla North-1 well and in EP 371, with MC contributing 80% of the cost of the well under the terms of its farm-in agreement with Buru. The Valhalla North-1 well is being drilled by Ensign Rig #32 to a planned total depth of 3,400 metres. It is expected to take 38 days to drill on a cased and completed basis.1
Since the commencement of drilling operations on 17 January 2012, Valhalla North-1 was drilled ahead in 17½" hole to a measured depth of 548m and 13