FAR LIMITED — Capital/Financing Update 2014

Jun 29, 2014

30 June 2014

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Shareholder update on Senegal drilling program

On 10 June, FAR Ltd (ASX:FAR, “FAR”) advised that Cairn (Cairn Energy plc), the Operator of the Senegal Joint Venture had modified the Senegal drilling programme in order to incorporate essential maintenance.

Since then, Cairn has advised FAR that maintenance work is expected to be completed soon to allow drilling operations on FAN-1 to resume. Drilling to date on FAN-1 has reached a depth of approximately 3000 metres and is above the first reservoir objective. The plan remains to drill to total depth of 5,300m TVD (total vertical depth). The second Senegal well, SNE-1 is currently suspended and can be re-entered when required. The well has been drilled to a depth of 1,907m TVD and is planned to drill to a total depth of 3,292m TVD.

Based on the above mentioned amended drilling program, FAR anticipates there will be an increase to the budgeted Senegal offshore drilling campaign well costs. Currently FAR estimates that it could be required to contribute approximately A$24.2M (US$22.5M) to fund its share of costs of the drilling program. To date, FAR has received cash payments totalling A$22.2M (US$20.2M) from its farm out deals with Cairn and ConocoPhillips. FAR has a current cash position as at 19 June 2014 of A$42.9M (unaudited).

Cath Norman, MD comments, “It is disappointing to have suffered a significant delay to drilling, but pleasingly once the current maintenance program is completed, we should reach our first target zone in a matter of days, not weeks. FAR completed two farm-out deals with Cairn and ConocoPhillips a year ago and has secured significant funding for this 2 well Senegal drilling program that many in the international oil and gas industry are keenly watching. We are keen to see drilling resume as soon as possible.”

The FAN-1 well will test a stacked fan structure with the potential to contain approximately 900 million barrels of oil (mmbbls)* with approximately 135mmbbls net to FAR* and will be followed immediately in a back-toback drilling program with the SNE-1 well to be drilled on the shelf targeting approximately 600 mmbbls of oil* with approximately 75 mmbbls net to FAR* (reference: FAR ASX release of 27/2/2013).

Drilling commenced on 17 April for the exploration well, FAN-1, offshore Senegal in which FAR holds a 15% Working Interest, Cairn 40% WI, ConocoPhillips 35% WI and, Petrosen 10% (fully carried)) (reference: FAR ASX release 17/4/2014) .

About the drilling offshore Senegal

FAN-1 is the first exploration well in a two well program, offshore Senegal with the wells to be drilled back to back. The first well will be located on the North Fan prospect in 1,500m water depth. This well will be immediately followed by a second exploration well targeting a shelf edge prospect in 1,100m of water (See figure 1).

These will be the first deep water (>1,000m) wells drilled in Senegalese waters and the first offshore wells to be drilled for over 20 years. The two exploration wells will test combined prospective resources of approximately 1.5 billion barrels of unrisked prospective resources* (225 mmbbls net to FAR*) and FAR retains a 15% working interest in the blocks. (Reference: FAR ASX release of 27/2/2013).

The FAN-1 well is a pure exploration well and, even if successful, will not be completed as a commercial production well. In the event of a success, the Joint Venture may decide to conduct further drilling and evaluation activities.

As FAR is not the operator of the Senegal wells the information flow it receives is dependent on reports provided by the operator Capricorn Senegal Limited (Cairn). Operations on the FAN-1 well are expected to last approximately two months, and FAR will release reports in collaboration with the Joint Venture partners.

*Refer to Cautionary Statement in this report (Page 2) relating to estimates of prospective resources

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----- Start of picture text ----- SENEGAL----- End of picture text -----

Figures 1 and 2: Location of the two Senegalese wells in the FAR 3D seismic area, offshore Senegal

Disclaimers

*Prospective Resource Estimates Cautionary Statement - With respect to the prospective resource estimates contained within this report, it should be noted that the estimated quantities of Petroleum that may potentially be recovered by the future application of a development project may relate to undiscovered accumulations. These estimates have an associated risk of discovery and risk of development. Further exploration and appraisal is required to determine the existence of a significant quantity of potentially moveable hydrocarbons .

Prospective Resources - All prospective resource estimates presented in this report are prepared as at 27 February 2013. (Reference: FAR ASX release of 27/02/2013) . The estimates have been prepared by the Company in accordance with the definitions and guidelines set forth in the Petroleum Resources Management System, 2007 approved by the Society of Petroleum Engineer and have been prepared using probabilistic methods. Unless otherwise stated the estimates provided in this report are Best Estimates and represent that there is a 50% probability that the actual resource volume will be in excess of the amounts reported. The estimates are unrisked and have not been adjusted for both an associated chance of discovery and a chance of development. The 100% basis and net to FAR prospective resource estimates include Government share of production applicable under the Production Sharing Contract .

Competent Person Statement Information - In this report relating to hydrocarbon resource estimates has been compiled by Peter Nicholls, the FAR Limited 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, the Society of Petroleum Engineers 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.

Forward looking statements - 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. The entity confirms that it is not aware of any new information or data that materially affects the information included in this announcement and that all material assumptions and technical parameters underpinning this announcement continue to apply and have not materially changed.

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