A Letter from CEO and Founder, Malcolm Bendall

Dear Friends,

After 30 years hard work, Great South Land Minerals is about to drill its first well on a seismically defined dome using a large, fully equipped petroleum-industry standard rig.

The Hunt Energy Rig No. 3 has arrived in Tasmania and has mobilized on the Bellevue site. The program commenced on the back of an AUD$8.2 million in exploration funding allocated for back-to-back drilling activities, with potentially a further AUD$40 million provided through a joint venture agreement negotiated with SmartWin International based in Hong Kong.

The planning and preparation for the program is the result and culmination of 30 years exploration activities within onshore Tasmania Basin at a cost over $AUD50 million. From 1984, Great South Land Minerals and its predecessor companies held various licenses over the Tasmania Basin. In the early 80's geochemical analyses using modern technologies were carried out on the source rocks, seeps, tars and bitumens. A regional aeromagnetic survey was conducted over the Basin in 1988. In 1994 Condor Oil commenced drilling 2 stratigraphic wells (Shittim-1 and Gilgal-1) to depths of up to 1751m. Gas shows have been recorded in Jericho-1 on Bruny Island, as well as Lonnavale-1, Pelham-1 and Shittim-1. The latter was analysed and showed highly mature thermal gas, with the presence of methane, ethane, propane, butane, hydrogen and helium (Wakefield, 2000).

In order to define potential drilling targets, Great South Land Minerals Limited commenced a 2D seismic program in 2001, initially completing 660 line kilometers with additional acquisition of 690 line kilometers during 2006 & 2007 at a cost of AUD$12.0 million. Further, extensive geochemical, gravity and magnetic surveys were conducted during this period.

The collection of these data has provided us with a sound understanding of the geological and geophysical characteristics of the Tasmania Basin, which is guiding the careful and strategic commercial planning and execution of the drilling program.

As with the first two targets, this multi-well program will test the petroleum potential for Special Exploration License 13/98.

Empire has begun drilling its first well, Bellevue #1, north of Lake Echo in the Central Highlands.

Hunt Energy Rig is now rigging up on site. A local drilling company has completed a top hole of 272 meters (892 ft) at the Bellevue site. We plan that the Hunt rig will complete drilling of Bellevue to a depth of up to 2,600m (8530ft) during April-May 2009.

We look forward to an exciting year of exploration.

M. R. BENDALL, December 2008

This letter contains forward-looking statements based on our current expectations about our company and our industry. You can identify these forward-looking statements when you see us using the words such as "expect," "anticipate," "estimate," "believes," "plans" and other similar expressions. These forward-looking statements involve risks and 3 uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of our ability to complete required financings and other preconditions to the completion of the transactions described herein and Empire's ability to successfully acquire reserves and produce its resources among other issues. We undertake no obligation to publicly update any forward-looking statements for any reason, even if new information becomes available or other events occur in the future. We caution you not to place undue reliance on those statements. For a more detailed discussion of risks and other factors related to Empire Energy Corporation Int'l, please refer to its 10-KSB and 10 Q reports filed with the U.S. Securities and Exchange Commission.

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