5^th March 2009

The Company is pleased to announce the placement of 38,888,888 convertible notes with a face value of 9 cents each to raise A$3.5m before expenses. The Company will issue all of the convertible notes utilising its 15% capacity under Listing Rule 7.1.

The notes have the following key terms:

(i)    The coupon rate is 1.25% per month, payable quarterly in arrears.  The coupon rate may be increased with a capped rate in the event of an increase in the oil price or an increase in oil production from the Bullseye project.

(ii)   the principal is repayable 5 years from drawdown and may be redeemed by the Company at any time for the face value plus a discounted value of future interest payment over the remaining life of the notes.

(iii)  the notes convert on a 1:1 basis (i.e. 38.9m ordinary shares).

In addition and contingent on commercial success in the Cib Haz Interval of the Jumonville  #2 well a further facility of A$3.5m on the same terms will be available to be drawn down subject to shareholder approval.

The Company is pleased to also advise that under the offer to Australian and New Zealand registered holders to purchase securities under the Share Purchase Plan (SPP) a total of 10,418,750 ordinary shares were subscribed at 8 cents each, raising $833,500 in total. Allotment of the share purchase plan shares has taken place today and holding statements dispatched shortly after this date. Please view the full announcement at www.ggpl.com.au to view the duly completed Appendix 3B.

Notwithstanding the significant size of this fundraising the Company?s expenditure is US$ based with total funds raised converting to ~ US$2.8m.  The Company?s ability to internally self fund project development has also been significantly impacted with a fall in the price of oil from over $100 to $40 per barrel.    

All funds will be applied toward the drilling and cost overruns of the Jumonville #2 well and cover the shortfalls associated with cost overruns in drilling and completing the Acosta well.

The Company is very pleased to have organised this critical funding particularly in very challenging equity and debt markets. 

On behalf of the Board of Directors

To view the announcement, as well as additional information on the Company, please click on the link below:

http://www.ggpl.com.au

For further information contact:

Golden Gate is an independent oil and gas exploration and production company listed on the Australian Stock Exchange. Its focus of operations is onshore Texas and Louisiana Gulf Coast region of the USA.