Galilee Energy Limited (Galilee) has notified the Board of Eastern Corporation Limited (Eastern) that its rights issue to raise funds for exploration in ATP 799P has now closed.

Under the terms of the issue shareholders could purchase one new ordinary share for every fifteen shares held at a price of 8.5 cents per share. Galilee also reserved the right to accept oversubscriptions. The number of shares subscribed was 21,562,026, raising $1,832,771. Galilee�s capital now comprises 812,285,801 fully paid ordinary shares.

Eastern did not subscribe to the issue, thereby diluting its overall holding in Galilee to 66.16%. However, under the terms of the offer Galilee was permitted to place any unsubscribed shares to any existing shareholder. The Board of Galilee has resolved to offer the shortfall of 31,152,892 shares to Eastern who intends to take up the unsubscribed shares for a consideration of $2,647,996 thereby increasing its interest in Galilee to 67.4%. Eastern has until 18 November to complete this transaction.

Eastern intends to fund this transaction from proceeds received from the sale of the Broughton coal project or by way of a director�s loan to the company should the Broughton sale not be finalised by the due date for payment.

For further information contact:

Sam Aarons
Manager, Business Development & Corporate Relations

Tel: 07 3216 1155
Fax: 07 3216 1199

Email: info@easterncorp.com.au