D'Aguilar Gold Limited (ASX:DGR) Advise The Completion Of A$10 Million Seed Raising For Armour Energy

Brisbane, Mar 14, 2011 AEST (ABN Newswire) - D'Aguilar Gold Limited (ASX:DGR) are pleased to advise of the completion today of a A$10 million seed capital raising for Armour Energy, ahead of a planned A$50 million IPO later in 2011.

New Shale Gas Province in the Northern Australia

Armour Energy is dedicated to the discovery and development of world class gas resources in an extensive new province in the Northern Australia. The area currently under application covers 118,814km2 of the McArthur, South Nicholson and Georgina Basins. The area is host to numerous shows of gas, condensate, oil and bitumen in the proterozoic aged McArthur Group and Roper Group sediments as encountered by previous explorers including Amoco in the 1980s.

The area is also prospective for large shale gas resources which are expected to be comparable to or rival shale gas resources contained within known shale gas basins in the USA.

Armour Energy has identified a core target area located within and adjacent to the fault bounded trough structure known as the Batten Trough. The target sediments are the thickened sections of the gas rich Barney Creek Shale which has scope to host up to 40TCF of gas in the area. Armour Energy is targeting 20TCF, equivalent to 21,100 Peta Joules (PJ), of shale gas in the Batten Trough.

Market Opportunities Identified

Several short term and lower volume market domestic industrial and power generation opportunities have been identified in and near to the exploration area, or adjacent pipeline infrastructure. Early exploration targets and ultimately reserve definition and production plans have been selected to address these opportunities.

The project area is well positioned to service the Northern Economic Triangle of Queensland and local markets in the Northern Territory.

Early Gas Flow Potential in Conventional Targets

In its Northern Territory project areas, Armour Energy has identified potential for shale gas plays in the Barney Creek Shale and potential to discover conventional gas accumulations in the Coxco Dolomite abutting the Barney Creek Shale along the Emu Fault Zone both North and South of the McArthur River Zinc Mine. A mineral exploration hole drilled at the Glyde River prospect in this area by Amoco in 1979 flowed gas and condensates at 140psi for 6 months before it was sealed at the surface.

Mineral exploration drill holes in the area frequently encountered bitumen, residual oil, gas shows and gas flows further substantiating the presence of a mature petroleum system in the area. Armour Energy has identified several targets adjacent to the Emu Fault Zone near both Glyde and Caranbirini along with other anticline related targets adjacent to the Abner Range. These targets provide immediate potential for approximately 200 Billion cubic feet or approximately 210 PJ of gas with further potential to be identified in similar trap sites.

Experienced Board and Management in Major Projects and Gas Exploration

Armour Energy's CEO, Mr Phil McNamara is highly experienced in the field of major project feasibility and development having recently headed the feasibility study and then successful negotiations with major Chinese constructors, financiers and customers for Waratah Coal. His previous appointments also saw him managing large coal development projects for Yanzhou Coal Australia, and prior to that Xstrata Coal.

Armour Energy is well supported by a team of highly experienced and successful petroleum exploration experts and consultants and draws relevantly on the coal seam methane experience of its chairman and D'Aguilar CEO, Mr Nicholas Mather, who was instrumental in the early business development strategy, project acquisition and exploration programs for Arrow Energy Limited (ASX:AOE) and Bow Energy Limited (ASX:BOW) (PINK:BOWYF). He is currently a Non Executive Director of Bow Energy.

Mr Bill Stubbs, Chairman of D'Aguilar was also Chairman of Arrow Energy between 1998 and 2005, during its emergence as a major coal seam methane company, and his experience will be particularly relevant to the emergence of Armour Energy as a major gas company.

Proposed IPO and ASX Listing

Armour Energy is targeting an IPO and ASX listing later this year. Activities leading up to the IPO will focus on tenement granting, identification of specific drill targets, gas market development, engagement of drilling and completions contractors and financial scoping studies.

Contact

Mr Nicholas Mather Managing Director D'Aguilar Gold Limited Ph: +61-7-3303-0680 Karl Schlobohm Company Secretary D'Aguilar Gold Ltd Ph: +61-7-3303-0680 D'Aguilar Gold Limited Email: info@daguilar.com.au http://www.daguilar.com.au