FAR LIMITED — Capital/Financing Update 2013

Feb 26, 2013

27 February 2013

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Potential for 7 billion barrels of hydrocarbon resources offshore Africa

The Board of FAR Limited (“FAR” or “the Company”) is pleased to announce the outcome of the updated prospective resource estimates following the completion of internal technical studies.

The new assessment of the prospective resources, on an un-risked, best-estimate basis, concludes that approximately seven billion barrels of hydrocarbon resources (5.4 billion barrels attributable to FAR) could be contained within just two of FAR’s offshore African oil exploration permits.

FAR managing director, Cath Norman, said, “The prospective resources that have now been identified in our Senegalese and Kenya L6 projects are much larger than we originally assessed.

There has been no oil and gas drilling off the Senegal coast for over 40 years and none in this Kenyan block for 20 years. We are confident of introducing a world class partner into both of these project areas. Modern seismic data and other new technologies clearly indicate very strong potential in these areas and we are aiming to drill in these blocks before year end”.

Kenya - Block L6

In FAR’s L6 permit (FAR 60% operator interest) off the coast of Kenya, recently received processed 3D seismic data, combined with studies of existing 2D data has identified a number of hydrocarbon play types and prospects.

From the 3D data FAR has matured three prospects (Tembo, Kifaru and Kifaru West) in the Kenya L6 block which have prospective resources of 327, 178 and 130 million barrels of oil (un-risked best estimate, 100% basis) respectively, or in a gas only success case, 807, 517 and 388 billion cubic feet of gas. The chances of a discovery of the three prospects have been assessed to be 21%, 19% and 18% respectively. The first exploration well location will be selected shortly.

Combined prospective resources for the L6 block have been assessed at 3.7 billion barrels of oil or 10.2 trillion cubic feet of gas (un-risked, best estimate, 100% basis).

FAR also holds a 30% interest in offshore Block L9 operated by Ophir. A map showing the location of FAR’s Kenya permits is set out below.

Senegal

FAR has identified numerous play types and oil prospects from recently completed studies of 3D seismic data on our Senegal blocks (FAR 90%, operator).

Eleven prospects have been identified ranging in potential size from 58 to 632 million barrels of prospective oil resource (un-risked, best estimate, 100% basis). Importantly, many of the prospects

have associated seismic amplitude responses strengthening confidence in the potential for the presence of hydrocarbons.

In combination, the Senegal blocks have prospective resources of 3.585 billion barrels of oil (unrisked best estimate, 100% basis).

Cath Norman said, “ Success in exploration drilling on any of the above prospects in Senegal or Kenya will substantially improve the probability of success in the remaining prospects. We are very keen to start drilling on these targets.”

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Prospective Resource Estimates

The following tables and notes set out the un-risked prospective resource estimates for Kenya Block L6 and Senegal as at 26 February 2013.

Kenya Block L6

		Unrisked Prospective Resour	Unrisked Prospective Resour	Unrisked Prospective Resour	Unrisked Prospective Resour	ces	ces
		Low Estimate		Best Estimate		High Estimate
Prospect	Play	Oil(mmbbls)	Gas(bcf)	Oil(mmbbls)	Gas(bcf)	Oil(mmbbls)	Gas(bcf)
Prospects defined on 3D seismic
Kifaru	Miocene reef	34	104	178	517	849	2,321
Kifaru West	Miocene reef	30	87	130	388	545	1,579
Tembo	Eocene clastics	91	227	327	807	1,212	2,907
Prospects defined on 2D seismic
11 Prospects	Miocene reef	297	821	1,249	3,461	5,194	14,032
13 Prospects	Eocene clastics	451	1,287	1,743	4,515	6,582	16,132
6 Prospects	Late Cretaceous clastics	21	101	126	547	684	2,808
Total Gross		925	2,627	3,754	10,235	15,066	39,779
Total Net to FAR		555	1,576	2,252	6,141	9,040	23,868

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Senegal

		Unrisked Prospective Resources	Unrisked Prospective Resources	Unrisked Prospective Resources
		Low Estimate	Best Estimate	High Estimate
Prospect	Play	Oil(mmbbls)	Oil(mmbbls)	Oil(mmbbls)
Prospects defined on 3D	seismic
Lufti	Buried Hill	69	203	470
Sabar	Buried Hill	96	304	768
Lamb-Ji	Buried Hill	39	136	393
Ramatou	Buried Hill	17	58	164
Lupalupa	Albian Shelf edge	40	154	491
Boabab	Aptian	112	491	1,356
Alhamdulillah North	Salt anticline	76	252	639
Sth Canyon	Slope Fans	135	439	1,137
Central Canyon	Slope Fans	180	612	1,591
North Canyon	Slope Fans	83	304	848
Beer	EarlyFans	175	632	1,666
Total - Gross		1,022	3,585	9,523
Total - Net to FAR		920	3,227	8,571

Notes to the tables

1. The estimated quantities of recoverable hydrocarbons stated in the tables above 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.

2. The recoverable hydrocarbon volume estimates prepared by the Company and stated in the tables above have been prepared in accordance with the definitions and guidelines set forth in the Petroleum Resources Management System, 2007 approved by the Society of Petroleum Engineers.

3. The prospective resource estimates have been estimated using probabilistic methods and are dependent upon a hydrocarbon discovery being made.

4. The Low Estimates, Best Estimates and High Estimates represent respectively that there is a 90%, 50% and 10% probability that the actual resource volume will be in excess of the amounts reported.

5. The estimates for unrisked prospective resources have not been adjusted for both an associated chance of discovery and a chance of development.

6. The Company estimates the chance of discovery for Senegal prospects to range from 11% to 38%, and for Kenya L6 prospects to range from 5% to 21%.

7. The gross (100% basis) and net to FAR prospective resource estimates include Government share of production applicable under the Production Sharing Contract.

8. FAR Ltd has a 90% working interest in Senegal and 60% working interest in Kenya L6.

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1. The estimates for unrisked hydrocarbon prospective resources for Kenya Block L6 in the tables above are reported in both oil and gas. There is insufficient geological and engineering data to make an assessment to the likely ratio of oil or gas in a given discovery in Kenya Block L6, hence the estimates provided are for either all oil or all gas. The oil and gas estimates reported should not be added together.

2. Prospective resources means those quantities of petroleum which are estimated, as of a given date to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development.

3. “bcf” means billion cubic feet of gas at standard temperature and pressure conditions.

4. “mmbbls” means million standard barrels of oil or condensate.

For further information contact For media enquiries contact Cath Norman Ian Howarth Managing Director Collins Street Media +61 3 9618 2550 +61 3 9223 2465

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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