SOUTHERN CROSS EXPLORATION N L

AND CONTROLLED ENTITIES

SIMPLIFIED BALANCE SHEET

AS AT 31 DECEMBER 2010

                                                                                                                $

WHAT SHAREHOLDERS OWN  (Assets)

Financial Assets and Receivables                                                   8,669,600

Exploration and Evaluation Assets                                                     797,937

Investment in Joint Venture                                                           8,574,542

TOTAL ASSETS                                                                           18,042,079

WHAT THE COMPANY OWES  (Liabilities)

TOTAL LIABILITIES                                                                      3,649,024

NET ASSETS                                                                            14,393,055

Share Capital, Reserves
and Accumulated Losses                                                              14,393,055

TOTAL EQUITY                                                                         14,393,055