Mosaic Oil’s Quarterly Report December 2009 January 29, 2010

Mosaic Oil NL (ASX: MOS) has had a busy quarter with several major initiatives well underway to deliver value to shareholders. Both production and revenue have increased significantly compared to the previous quarter. Additionally, the Company has successfully completed a significant capital raising and is in a sound financial position from which to grow.

CORPORATE HIGHLIGHTS

• Successfully raised $10.9 million by way of a placement of 94.74 million shares at 11.5 cents.
• Mosaic successfully raised $10.3 million under the Share Purchase Plan (SPP) issuing 93,365,306 shares at an issue price of 11 cents.
• Total funding raised during the quarter was $20.5 million (net of share issue costs).
• Appointed Chief Commercial Officer.
• Strong Oil/Condensate prices for the quarter with average price of $AUD $95.15 per barrel.
• Cash receipts of $6.374million for the quarter.

OPERATIONAL HIGHLIGHTS

• Production increased by 39% (BOE) from previous quarter including a 43% increase in gas sales.
• The new Taylor gas wells contributed strongly to the production performance
• Mosaic continued discussions with potential customers for the underground gas storage project (SSUGS).
• Commenced acquisition of a 2D seismic program in PEP 51151, Taranaki Basin, New Zealand.
• Fracture Stimulation studies being carried out for the Waggamba and Churchie fields.

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For further information, please contact:

Mosaic Oil: Alex Parks – CEO on +61 2 9247 9324

Media: Bill Kemmery – Fortbridge on + 61 (0)400 122 449 – bill.kemmery@fortbridge.com