Mosaic announces record financial performance for Quarter from ordinary activities October 31, 2008

Mosaic Oil (ASX: MOS) has released today its Quarterly Activities Report for September 2008.

Mosaic Oil remains focused on implementing an accelerated drilling campaign for the 2008-2010 period at the Surat-Bowen Basin, Queensland, Australia.

The Company successfully completed 2008 drilling program with 9 wells drilled. At present, 4 wells have been completed and connected for production, one well (Waggamba-5H) completed for testing and one exploration well (Freneau-1) cased and suspended for future completion and testing.

KEY POINTS IN THIS REPORT:

• September 2008 Quarter delivers:
  - Overall production increase of 7%
  - Drilling success at Taylor-19 and Freneau-1
  - Cash receipts of $8.4 million for the Quarter
  - An average oil price for the Quarter of US$123.40/bbl or A$154.82/bbl.
  - Cash at the end of the Quarter of $19.3 million.

• Surat-Bowen Basin, QLD:
  - Multi-well 2008 drilling program completed with 9 wells drilled
  - Taylor-19 was completed as a gas/condensate producer
  - Freneau-1 exploration well was cased and suspended for future completion and testing after encountering a total of 9.1m log interpreted net gas pay within Permian sandstone reservoirs

• Onshore Taranaki Basin, New Zealand:
  - Successful bidder for PEP51151

Please refer to the full report for details.

For further information, please contact:

Mosaic Oil: Lan Nguyen – Managing Director on +61-2 9247 9324

Media: Bill Kemmery – Fortbridge on +61-2 9331 0655, mob 0400 122 449, email bill.kemmery@fortbridge.com