Bandanna Energy Limited (ASX:BND) Receives Notification from the Federal Government of Decision under the EPBC Act for the Dingo West Coal Project

Brisbane, July 13, 2011 AEST (ABN Newswire) - Bandanna Energy Limited (ASX:BND) is pleased to announce that it has been notified of the Federal Government Department of Sustainability, Environment, Water, Population and Communities (DSEWPaC) decision under the Commonwealth Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) in respect to the Dingo West Coal Mine Project (Dingo West).

The decision, that the construction and operation of the Dingo West Project is "not a controlled action" is consistent with Bandanna's referral to the Federal Government in December 2010.

Bandanna Energy's Managing Director Dr Ray Shaw says "this decision means that the project does not require environmental approval from the Federal Government to proceed. This decision confirms Bandanna's assessment in the referral of the Project to DSEWPaC and now allows the project to move forward with the State Government approval process".

Bandanna Energy will now focus on its baseline environmental assessments in support of the development of an Environmental Management Plan ("EMP") for the Dingo West Project. The EMP will form part of the Environmental Authority Application that will be lodged as part of the Mining Lease Application for Dingo West.

Dr Shaw further stated "the confirmation of the decision by the Federal Government is a key step in allowing Bandanna Energy to move efficiently from explorer to producer."

For a brief overview of the Dingo West Project please refer to Bandanna's ASX release of 19/04/11 "Feasibility Studies Update" which can viewed at Bandanna website http://www.bandannaenergy.com.au

Contact

Dr Ray Shaw Tel: +61-7-3041-4400 Andrew Crook Mob: +61-419-788-431 http://www.bandannaenergy.com.au