FAR LIMITED — Capital/Financing Update 2014

May 14, 2014

15 May 2014

Shareholder update: Senegal drilling

Cairn Energy PLC, the operator of FAR’s two well drilling campaign offshore Senegal has released the following statement to the media in conjunction with their annual reporting to shareholders.

Cairn’s planned two well exploration programme offshore Senegal began in April using the ‘Cajun Express,’ a 5th generation semi-submersible drilling unit.

Operations continue on the FAN-1 well, located on the North Fan Prospect in 1,427m water depth in the Sangomar Deep block approximately 100km offshore Senegal. This well is targeting multiple stacked deepwater fans interpreted as potentially thick, high quality clastic reservoirs.

In light of required rig maintenance and to optimise the rig schedule, the top hole section has also been drilled on the second exploration well SNE-1, located on the Shelf Edge Prospect in 1,100m of water. The rig has returned to FAN-1 to continue drilling the deeper sections.

After drilling operations on FAN-1 are complete the rig will then return to the SNE-1 location. This dual objective prospect targets stacked Cretaceous clastics and a deeper target of karstified and fractured Lower Cretaceous shelf carbonates. There are several other shelf edge anomalies that provide follow-up potential in the success case.

Cairn (Operator) has a 40% WI in the three blocks offshore Senegal (Sangomar Deep, Sangomar Offshore, Rufisque Offshore) and is working with JV partners: ConocoPhillips 35% WI; FAR Ltd 15% WI and Petrosen, the Senegal National Oil Company, retaining a 10% WI in the exploration phase. In the event of a commercial success, ConocoPhillips will have the option to operate the future development of the resource.

“FAR is in an enviable position as we continue our drilling program in Senegal. The company has two strong partners, retains a high equity in any discovery made and is well funded to meet its commitments in these wells.

Success in either of these two wells offshore Senegal will be significant and open the door to a large inventory of follow on drill targets creating sizeable upside for the company and its partners. It is a fantastic milestone for the company and one that we aim to reproduce in Kenya where we are currently progressing a farm-out initiative. We expect that the success of the recent Sunbird-1 well will change the exploration landscape offshore Kenya where FAR is well positioned with a strong acreage position. It is wonderful that FAR has a deep African portfolio of opportunities for our shareholders. ”

Cath Norman Managing Director

The FAN–1 well will test a structure with the potential to contain approximately 900 million barrels of oil (mmbbls)* with approximately 135mmbbls net to FAR* (reference: FAR ASX release of 27/2/2013).

FAN-1 will be immediately followed by a second exploration well targeting a shelf edge prospect in 1,100m of water and together the two exploration wells will test combined, unrisked, prospective resources of approximately 1.5 billion barrels* (225 mmbbls net to FAR*) with FAR retaining a 15% working interest in the blocks (reference: FAR ASX release of 27/2/2013).

Drilling FAN-1 is expected to be completed mid to late June.

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

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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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