SOUTHERN CROSS EXPLORATION N L

AND CONTROLLED ENTITIES

SIMPLIFIED BALANCE SHEET

AS AT 31 DECEMBER 2009

                                                                                                                $

WHAT SHAREHOLDERS OWN  (Assets)

Financial Assets and Receivables                                                    8,264,499

Exploration and Evaluation Assets                                                     713,870

Investment in Joint Venture                                                           8,152,656

TOTAL ASSETS                                                                           17,131,025

WHAT THE COMPANY OWES  (Liabilities)

TOTAL LIABILITIES                                                                      3,649,087

NET ASSETS                                                                            13,481,938

Share Capital, Reserves
and Accumulated Losses                                                               13,481,938

TOTAL EQUITY                                                                         13,481,938