FAR LIMITED — Capital/Financing Update 2013

Oct 28, 2013

29 October 2013

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ASX ANNOUNCEMENT AND MEDIA RELEASE

Rig commences drilling program including two wells offshore Senegal

• Cairn Energy spuds first well in drill program offshore North Africa

• Senegal drilling program commences after two North African wells

• First well offshore Senegal to spud mid Q1 2014

• Well site surveys successfully completed offshore Senegal

Cairn Energy PLC, the operator of FAR’s (ASX:FAR) Senegal exploration permits, has mobilised the Transocean drilling rig “Cajun Express” for an African drilling campaign which includes FAR’s two high impact Senegal exploration wells. The Cajun Express, a fifth generation, dynamically positioned, semi-submersible rig, commenced drilling operations yesterday in accordance with a release made by Cairn Energy to the London Stock Exchange overnight. FAR anticipates the first of its two Senegal wells will spud in middle of the first quarter of 2014.

FAR managing director, Cath Norman, said, “Excellent progress is being made in preparation for FAR’s two potentially company making exploration wells in Senegal. FAR transferred operatorship to Cairn in August 2013, and since then well site surveys and a rig maintenance program have been completed. Based on FAR’s current schedule, we anticipate the first Senegal well will spud in mid Q1 2014. The two wells to be drilled offshore Senegal early in 2014 will be testing approximately 1.5 billion barrels of prospective resources[1] and offers FAR shareholders significant growth potential.”

Farm in Agreements

During the course of this year, FAR has completed two major farm-in agreements in relation to its offshore Senegal exploration permits.

Under the farm-in agreement with Cairn, approved by the Senegalese Government in May, Cairn will fund 100% of FAR’s costs of one exploration well offshore Senegal to an investment cap of US$80 million. In addition Cairn has agreed to pay FAR US$9.82 million in two tranches for past costs, of which $4.82 has already been received.

On 1 August FAR announced a second farm-in agreement with ConocoPhillips. Under the terms of this agreement, which remains subject to Senegalese Government approvals, ConocoPhillips will provide additional funding equivalent to a full carry of FAR through a second exploration well in exchange for a 10% working interest in the Senegalese permits. This funding will take the form of cash payments and well carry cost payments.

1 Unrisked best estimate, 100% basis as per FAR ASX release dated 27 February 2013.

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After completion of the two farm-in deals with ConocoPhillips and Cairn, FAR will have secured full funding for its share of two exploration wells totalling approximately US$190 million (100% basis, FAR estimate) and net surplus cash of approximately US$10 million.

FAR retains a 15% working interest in the permits. ConocoPhillips and Cairn will hold 35% and 40% respectively. Petrosen, the Senegal National oil company, has a 10% carried interest through the exploration phase.

Senegal Drilling Prospects

The two back to back exploration wells, expected to start drilling in February 2014, will target approximately 1.1 billion barrels of unrisked prospective resources[2] . The wells will test a ‘shelf’ play and deeper water ‘fan’ play. Both prospects have significant follow-up drilling potential in the event of a discovery.

FAR’s three contiguous Senegalese blocks – Rufisque, Sangomar and Sangomar Deep – cover 7,490km[2] , and have significant exploration potential. From 2,050km[2] of modern 3D seismic data acquired in the blocks, FAR has identified a number of play types including the “fan” and “shelf” plays and has mapped 11 potentially drillable prospects as well as numerous other leads, many supported by associated seismic amplitude responses. FAR assessed its Senegal blocks to have prospective resources of 3.585 billion barrels of oil[3] .

The following map shows the location of the blocks in which FAR holds interest in Senegal.

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About FAR

FAR (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 a dominant position in the fast emerging and highly competitive oil and gas province of Kenya, East Africa. In West Africa, FAR holds a large and highly prospective acreage position in Senegal, Guinea-Bissau and the AGC Profond.

FAR has a strong cash position and is well placed to create further shareholder value in its highly prospective exploration acreage and capture new opportunities.

2 Unrisked best estimate, 100% basis as per FAR ASX release dated 27 February 2013.

3 Unrisked best estimate, 100% basis as per FAR ASX release dated 27 February 2013.

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For further information, please contact

Melbourne Office Media Enquiries Cath Norman Ian Howarth Managing Director Collins Street Media Ben Clube Phone +61 3 9223 2465 Commercial Manager, Director Phone +61 3 9618 2550 www.far.com.au info@far.com.au

Disclaimers

The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

This document may include forward looking statements. Forward looking statements include, are not necessarily limited to, statements concerning FAR’s planned operation program and other statements that are not historic facts. When used in this document, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should” and similar expressions are forward looking statements. Although FAR Ltd believes its expectations reflected in these are reasonable, such statements involve risks and uncertainties, and no assurance can be given that actual results will be consistent with these forward looking statements.

Competent Person Statement

Information in this report relating to hydrocarbon resource estimates has been compiled by Peter Nicholls, the FAR Ltd exploration manager. Mr Nicholls has over 30 years of experience in petroleum geophysics and geology and is a member of the American Association of Petroleum Geology, and the Petroleum Exploration Society of Australia. Mr Nicholls consents to the inclusion of the information in this report relating to hydrocarbon Prospective Resources in the form and context in which it appears. The Prospective Resource estimates contained in this report are in accordance with the standard definitions set out by the Society of Petroleum Engineers, Petroleum Resource Management System.

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