FAR LIMITED — Capital/Financing Update 2012

Oct 7, 2012

8 October 2012

ASX ANNOUNCEMENT AND MEDIA RELEASE

FAR to sell Carnarvon Basin asset

FAR Limited (“FAR”) has agreed to sell its 11.25% interest in permit WA-47-R in the Carnarvon Basin to Hydra Energy (WA) Pty Ltd, a company established and controlled by Hydra Energy Holdings Pty Ltd (“Hydra”). The WA-47-R block contains the small, undeveloped Sage field which is not considered a fit with FAR’s focus on high potential exploration and acquisition growth opportunities in Africa.

Hydra is a private Australian company backed by Barclays Natural Resource Investments, a division in the Investment Bank of Barclays Bank PLC, as a financial investor and the majority shareholder. Hydra has specialist capabilities in small-field development with a focus on undeveloped discoveries and late-life assets in Australia and Asia.

The completion of the sale of FAR’s interest in the WA-47-R permit is subject to Joint Venture, government and regulatory approvals, with an effective date of 1 August 2012.

For further information contact

Cath Norman Managing Director +61 3 9618 2550

For media enquiries contact

Ian Howarth Collins Street Media +61 3 9223 2465

Elodge ID 8Oct12 - Carnarvon Basin sale to Hydra

About FAR Ltd

FAR Limited (ASX: FAR) is an independent oil and gas explorer with high impact assets in East and West Africa. FAR's acquisition of Flow Energy in November 2011 strengthened its African focus, giving it entry to the fast emerging oil and gas province of Kenya, East Africa.

In West Africa, FAR holds a dominant position with high impact prospects in Senegal, Guinea Bissau and the AGC Profond.

FAR Ltd will focus its near-term efforts on the highly prospective margins of West and East Africa.

Recent takeover activity and new drilling and major natural gas discoveries in areas close to FAR Ltd’s East Africa offshore acreage have heightened interest in the region.

FAR also holds a large portfolio of frontier exploration acreage, with considerable prospectivity in Southern Jamaica and holds acreage surrounded by proven petroleum systems in Western Australia.

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