FAR LIMITED — Capital/Financing Update 2012

Apr 29, 2012

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30 April 2012

ASX ANNOUNCEMENT AND MEDIA RELEASE

Award of 3D seismic contract, Kenya

A contract for a 3D seismic survey over some of the world’s most keenly sought petroleum exploration acreage off the coast of Kenya has been awarded by Australian listed petroleum exploration company, FAR Ltd (ASX:FAR).

FAR Ltd ‘s L6 permit off the Kenya coast lies in the Lamu Basin, north of recent, world scale, natural gas discoveries totalling around 100 trillion cubic feet off the coasts of Mozambique and Tanzania.

FAR Ltd managing director, Cath Norman said, “Drilling in the Rovuma Basin off the coast of Mozambique and Tanzania, has so far achieved a near perfect success rate.”

“Much of that success has stemmed from the use of modern, high quality, 3D seismic data which is able to provide quality images of potential structures deep beneath the surface.”

“FAR has mapped a total of seven prospects in the L6 permit which we aim to better define using the 3D seismic and greatly enhance our chance of success in ahead of drilling next year.”

A map of the planned 3D seismic survey is shown below.

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FAR licences offshore Kenya Southern portion of L6 showing 3D seismic outline in red

The survey will cover 680km[2] and is budgeted to cost $13.67M (FAR Ltd share $8.2M). The seismic survey is expected to start at the end of May and take approximately 5 weeks to acquire.

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The L6 permit is in the Lamu Basin, offshore Kenya. FAR operates the block with 60% equity and has a 30% interest in the L9 block as shown above. The next well to be drilled in the basin will be the Mbawa prospect in Block L8 by Apache Corporation in August this year. Anadarko Petroleum Corporation has announced plans to drill the first of its wells before year end (Blocks L5, L7, L12, L11A, L11B) and BG is preparing to drill its first well offshore Kenya at the end of 2012 (Blocks L10A and L10B). FAR will be drilling their first well in mid 2013 on Block L6.

Cath Norman said, “The value of exploration acreage in the offshore waters of Kenya, Tanzania and Mozambique has been significantly enhanced in the past year by several major gas discoveries by Anadarko Corporation, ENI, Statoil and BG. These discoveries are publicly stated to contain up to 100 trillion cubic feet of gas.”

“Shell International recently offered $US1.8 billion to acquire Cove Energy which holds a junior stake in Anadarko’s discoveries.”

“FAR believes this acreage has the potential to generate very significant shareholder wealth in coming months,” said Ms Norman.

About FAR Limited

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

In West Africa, FAR holds a dominant position among ASX listed entities with high potential prospects in Senegal, Guinea Bissau and the AGC Profond.

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

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

Incorporated in Western Australia in 1984 as First Australian Resources NL, the company became a listed public entity in 1985. The name was changed to FAR Limited in 2010.

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For more information contact:

Catherine Norman Managing Director FAR Limited Telephone (03) 9618 2550 International: +61 3 9618 2550

For Media inquiries contact:

Ian Howarth Collins Street Media 0407 822 319