Badger Explorer ASA - Successful Prototype Test Completed in Brumunddal

Badger Explorer ASA is pleased to announce that the final phase of
Milestone 3 of the Badger Explorer Prototype Project has been completed.
This final phase has been a new drilling test in the sandstone formation
at the test site in Brumunddal. The Badger Explorer tool has drilled and
built a plug below the water table in open hole, which has never been
done before. The test was completed on 13 July and the results are
encouraging.

"The conclusion of the test program of the prototype project is a
conceptual breakthrough for our technology and definitely the most
important milestone in the Company's history so far." says Marcus
Hansson, Chairman of the Board.

The Prototype Project Agreement was entered into with The Research
Council of Norway, ExxonMobil, Shell and Statoil in April 2005. The
Badger Explorer Prototype Project has had three main milestones, the
final one of which, Milestone 3, has now successfully been concluded.
This milestone consisted of two phases, the first of which was to
complete a drilling test in clay. The test was carried out at the
Company's test site at Sola in May this year, as reported in the press
release on 30 May 2011.

The second phase of Milestone 3 was a new drilling test at the test site
in Brumunddal where the Badger Explorer tool has operated below the
water table and in open hole. The test was executed by the Badger
Explorer tool drilling a 2.6 meter deep hole, transporting and
separating the cuttings inside the tool before sealing off the hole by
forming a solid plug. The drilling test lasted for approximately eight
hours and was stopped due to mechanical challenges with the tool. This
was expected as the prototype version's design is not sufficiently
robust to carry out drilling tests of longer duration.

Badger Explorer ASA considers the prototype project concluded by this
successful drilling test. The final approval of Milestone 3 will release
outstanding project funds of 1.44 MNOK from the Company`s industrial
sponsors.

The final results from the Milestone 3 testing will be presented to the
project's steering committee mid August. This committee consists of the
project's industrial sponsors, ExxonMobil, Shell and Statoil and is the
formal decision maker on the Badger Explorer Prototype Project.

Milestone 1, a technical feasibility study, was carried out in 2005 and
approved by the oil companies in December 2005.

Milestone 2, the full-scale proof of concept, was carried out at the
test site in Brumunddal in October 2010, as reported in the press
release on 18 October 2010, and approved by the oil companies in
December the same year.

"With the final phase of Milestone 3 now completed we can formally enter
into dialogue with the oil companies and Innovation Norway regarding the
content and the funding of the next phase of Badger Explorer's
development program, the pre-commercial phase. The main aim of this
phase is to collect everything that we have learnt from the Prototype
Project and transfer it to a robust product platform for the Badger
Explorer technology and set the basis for the field version of the
tool." says CEO Kjell Erik Drevdal.

"The results of the Prototype Program are encouraging and the Company is
proud to have completed the extensive test and development work which we
are now concluding. We are looking forward to getting on with the next
phase of the development of our services." concludes Mr. Drevdal.

Stavanger, 15 July 2011

For further information, please contact:
Kjell Erik Drevdal, CEO, cell phone +47 916 43 552, office +47 52 97 45
15
Gunnar Dolven, CFO, cell phone +47 908 53 168, office +47 52 97 45 40