FAR LIMITED — Capital/Financing Update 2012

Mar 28, 2012

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29 March 2012

ASX ANNOUNCEMENT AND MEDIA RELEASE

FAR Raises $15 million to Fund East African Exploration

FAR Ltd plans to raise $15.04 million, to fund offshore oil and gas exploration in East Africa off the Kenya coast.

The funds will be raised through a placement of 280 million shares at 4.3 cents per share to raise up to $12.04 million and a Share Purchase Plan of up to $3 million to existing shareholders.

The placement is being made predominantly to international and domestic institutional clients of Hartleys Limited, broker to the offer. A total of approximately 70 million shares at 4.3 cents per share will be offered under the SPP to eligible shareholders registered at 28 March 2012, with SPP documentation to be sent to eligible shareholders shortly. The SPP will open on Monday 2 April 2012 and close on Friday 13 April 2012.

The capital raising will allow FAR to maintain its equity interest in Kenyan Block L6 and Block L9, close to a string of recent major offshore gas discoveries.

FAR’s managing director Cath Norman said “We were overwhelmed by the support shown for the placement. We received offers for a multiple of the money we sought to raise, which shows the interest that is building in the East African oil and gas province.”

“FAR is one of the early movers in East Africa and has accumulated an enormous acreage position in prime exploration areas.”

“I am confident that the rewards from several years of hard work in this area will now start to flow to shareholders,” said Ms Norman.

“Shell’s recent takeover offer for a leading junior East African player, Cove Energy, which was subsequently overbid by the Thai company PTTEP demonstrates the accelerating global interest that is in this region.”

“Adding to this excitement are the recent offshore gas discoveries by companies such as BG, ENI Spa, Anadarko Petroleum Corp, Statoil, ExxonMobil and Ophir Energy off the coasts of Mozambique and Tanzania.”

This announcement lifts the trading halt on FAR’s securities.

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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 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 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.

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. In November 2011 FAR finalised its takeover of Flow Energy Limited.

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