4Q AND FULL YEAR 2008 REPORTING

2008 was an eventful year for Badger Explorer ASA. The development of the drilling tool Badger Explorer made important and valuable progress and is in line with the overall plan. The target is to have a commercial service for late 2010. The Demo50 prototype test in Denmark in Q4 provided valuable experience and the test results give reason for continued optimism. Badger Explorer ASA retains its strong financial position and combined with a strengthened organisation and the partner agreements with the major oil companies Shell, ExxonMobil and StatoilHydro, the company is in a favourable position for reaching its objectives for 2009. At the start of 2008 Badger Explorer ASA manually operated a Badger Explorer tool that was split in two separate units. At the turn of the year the company has a full size Demo50 prototype tool which is a robotic electro/hydraulic tool steered by a PC based SCADA system via a 50 meter long cable. Badger Explorer ASA plans to commence a test programme in June 2009 in which the ultimate purpose will be to test the self-burying capabilities of the tool. A parallel focus during 2009 will be development of the next version Badger Explorer, the Demo125 version. The organisation will take advantage of the valuable results achieved through 2008 and is determined to solve the remaining technical challenges related to this next version. Badger Explorer ASA was listed on the Oslo Stock Exchange (Axess) in June 2007, raising NOK 160 million in the process. Since becoming a public company Badger Explorer ASA has retained its solid financial position. Going forward the activity level and thus capital spending will be significantly increased. As of 31 December 2008 the Badger Explorer Group has a net equity of NOK 212 million, equivalent to an equity ratio of 91,9 %. Net cash position was NOK 138 million in bank deposits and in addition NOK 39 million in bank bonds. Combined with the partner agreements this is considered to be sufficient to finance the company to reach a commercial stage. A considerable volume of new knowledge and technology, with ground breaking potential, and which represents significant value, have been developed through the project. This has developed Badger Explorer ASA into a technology company with multi-discipline research, engineering and design resources of high quality. The company expects that many of the technological solutions developed specifically for the Badger Explorer tool can be applied for other industrial applications. The scope for the development work in 2009 comprises the further development of the Demo50 tool to include improved separation and compaction functionality. A revised version is aimed to be tested during the summer. In parallel, development of a higher temperature rated tool, a Demo 125, is underway. The aim for this part of the overall development is to build a higher specification tool in order to be able to reach significant subterranean depth and provide the basis for a future commercial service. The company's development program is in line with previous communicated plans. The Badger Explorer Group (includes Calidus Engineering Ltd.) had revenues of kNOK 7 373 in 2008, compared with kNOK 1 031 in 2007. For 4Q 2008 the revenues amounted kNOK 2 486. Operating expenses for 2008 amounted to kNOK 18 210, compared with kNOK 10 308 for 2007, while the operating expenses for 4Q 2008 was kNOK 5 395. EBITDA for 2008 amounted to kNOK -10 847, compared with kNOK - 9 277 for 2007, while the EBITDA for 4Q 2008 was kNOK -2 909. For further information, please contact: Kjell Erik Drevdal, CEO, +47 916 43 552 Gunnar Dolven, CFO, +47 908 53 168