Tuesday, June 5

Bandanna Energy Limited (ASX:BND) Update on Springsure Creek Project

Sydney, Australia, June 5, 2012 - (ABN Newswire) - Bandanna Energy Limited (ASX:BND.AX - News) today provided an update in relation to its Springsure Creek Project. Bandanna is proposing to submit a replacement mining lease application for the Springsure Creek Project to address technical errors identified in the former mining lease application (MLA 70416), as well as concerns raised by some members of the local community.

Because the overall approvals timeline is governed by the assessment process for the Environmental Impact Statement (EIS), the lodgement of the replacement mining lease application will not impact on the timetable for development of the Springsure Creek Project for first production in the second half of 2014.

Bandanna has been in consultation with community members, the Central Highlands Regional Council and the Queensland Government to address a number of concerns that were raised in relation to its former mining lease application (MLA70416). A review by Bandanna revealed opportunities to reduce the size and extent of the mining lease application and revise the layout and design of the proposed mine plan, so as to produce an arrangement which improves beneficial co-existence with farms and homesteads.

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