BPH ENERGY LTD — Capital/Financing Update 2011

Jul 5, 2011

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6 July 2011

Companies Announcement Office Australian Securities Exchange Limited 10th Floor, 20 Bond Street SYDNEY NSW 2000

Ord Expansion Project allows for development of Advent’s EP386/RL1 Projects

MEC Resources (ASX:MMR) is pleased to provide the following advice from its investee company Advent Energy Ltd ( Advent ) regarding its EP386 and RL1 permits in the onshore Bonaparte Basin, WA and Northern Territory, as an expansion to MMR’s previous announcement on the 24[th] June 2011. Advent’s major shareholders include MEC Resources (ASX: MMR), BPH Energy (ASX: BPH), Talbot Group Investments and Grandbridge (ASX: GBA).

Ord Expansion project to impact positively on EP386

The Department of State Development (WA) has described the Ord-East Kimberley Expansion project as a nation building project to create stronger, sustainable regional communities in the East Kimberley. The $415 million investment includes:

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• $195 million from the Commonwealth Government for the East Kimberley Development Package, and

• $220 million from the WA Government for the Ord Irrigation Expansion Project.

Tenders worth $50m for the initial road and infrastructure program were let in May last year and this initial phase of works is currently underway north of Kununurra adjacent to Advent’s EP386 permit.

The current Ord expansion project in Western Australia will bring road infrastructure to within 15 kilometres of Advent’s Vienta gas well in EP386 and will allow for the development of Advent’s onshore Bonaparte Basin gas assets.

These important investments by the WA and Commonwealth governments provide the impetus for Advent to pursue its objective of developing its wholly owned petroleum resources within EP386 and RL1. Significantly, these government investments will impact markedly on the energy requirements of the Kununurra region which is currently supplied by hydroelectricity from the Lake Argyle hydroelectric facility and diesel power generation.

To progress the development of its assets, Advent has recently announced a mean[1] independently audited Contingent Resource* for the Weaber Gas Field within Retention Licence 1 (RL1) in the onshore Bonaparte Basin, Northern Territory, of 18.4 Bcf. This was announced to the ASX by MMR on 24 June 2011.

Advent is in an exceptional position where it remains the operator and 100% owner of the only petroleum permits in the vicinity of this region.

Ord Irrigation Expansion

The Ord Irrigation Expansion project is designed to deliver 8,000 hectares of agricultural land and supporting infrastructure, including off-farm water supply, drainage and roads. The project

1 The mean is the average of the probabilistic resource distribution

• contingent resources, as defined under the Society of Petroleum Engineers Petroleum Resource Management System (SPE PRMS) guidelines.

infrastructure delivery is taking place in two phases over three years, with final completion expected at the end of 2012 (Reference: WA Dept of Regional Development and Lands).

As demonstrated by the map below, the Ord Irrigation Expansion area will come within fifteen kilometres of Advent’s Vienta-1 gas discovery. The construction of all-weather sealed roads within the Ord phase two project provides for suitable infrastructure developments to support a commercial development of the field.

Yours sincerely,

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David Breeze Executive Director MEC Resources Ltd PO Box 317 North Perth WA 6906 Tel: +61 8 9328 8477

About MEC Resources

ASX listed MEC Resources (ASX: MMR) invests into exploration companies targeting potentially large energy and mineral resources. The Company has been registered by the Australian Federal Government as a Pooled Development Fund enabling most MEC shareholders to receive tax free capital gains on their shares and tax free dividends.

About Advent Energy

Advent Energy Ltd is an unlisted oil and gas exploration company, held by major shareholders MEC Resources (ASX: MMR), BPH Energy (ASX: BPH), Grandbridge Limited (ASX: GBA) and Talbot Group Investments. Advent holds a strong portfolio of exploration and near-term production assets throughout Australia. Advent’s cornerstone project lies off the coast of NSW in Petroleum Exploration Permit 11 (PEP11), and comprises gas prospects of multi-Tcf capacity where Advent holds 85% of PEP11 with Joint Venture partner Bounty Oil and Gas (ASX:BUY) holding 15%.

Notes: In accordance with ASX listing requirements, the geological information supplied in this report has been based on information provided by geologists who have had in excess of five years experience in their field of activity.

MEC is an exploration investment company and relies on the resource and ore reserve statements compiled by the companies in which it invests. All Mineral Resource and Reserve Statements have been previously published by the companies concerned. Summary data has been used. Unless otherwise stated all resource and reserve reporting complies with the relevant standards. Unless specified, resources quoted in this report equal 100% of the resource and may not represent MEC’s investees’ equity share.

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MEC Resources Ltd

ACN 113 900 020 PO Box 317, North Perth, WA 6906 14 View Street, North Perth 6006, Western Australia T: +61 8 9328 8477 F: +61 8 9328 8733 info@mecresources.com.au www.mecresources.com.au

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Map showing proximity of the Ord development to Advent’s 100% owned Vienta and Waggon Creek discoveries and Weaber Gas Field.

MEC Resources Ltd

ACN 113 900 020 PO Box 317, North Perth, WA 6906 14 View Street, North Perth 6006, Western Australia T: +61 8 9328 8477 F: +61 8 9328 8733 info@mecresources.com.au www.mecresources.com.au

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Advent’s 100% owned Bonaparte Basin assets EP386 and RL1

MEC Resources Ltd

ACN 113 900 020 PO Box 317, North Perth, WA 6906 14 View Street, North Perth 6006, Western Australia T: +61 8 9328 8477 F: +61 8 9328 8733 info@mecresources.com.au www.mecresources.com.au