With reference to the news item appearing in a leading web portal titled “Deep Industries in talks of bagging 1 oil & gas block under Nelp VII”, Deep Industries Ltd has clarified to BSE as under:

1. As mentioned Deep Industries in talks of bagging one Oil & Gas blocks under
NELP - VII.

Expl: The Company would like to mention that the Company had bidded for the Oil & Gas block under NELP VII on June 30, 2008. The said block is at Satpura Rewa with an area of about 789 sq. kms. With regard to news on news channel the Company have not informed about it to any Research Analyst. The Company understand that DGH had opened the bid on same date but award of the bid would be declared by DGH sometime later. The Company have not been informed in writing by DGH, therefore the Company cannot comment on it at this time. However as the Company understand that DGH might have declared the results on their website as provisional winners for the bid. The Company also understand that DGH would be doing detailed evaluation of the bid and final results can take reasonable time for announcing the award.

2. It is true that Company has been awarded two Coal Bed Methane blocks in Madhya Pradesh & Andhra Pradesh and three Gas Marginal field in Rajasthan long time ago.

3. With respect to the estimation of reserves, the Company cannot comment on the same at this time as reserve could be estimated only after doing the seismic survey.