FAR LIMITED — Capital/Financing Update 2014

Feb 10, 2014

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11 February 2014

US$5 million cash received on Senegal farm out deal

• FAR receives US$5 million cash from Cairn Energy in relation to its Senegal farm out deal

• FAR cash position strengthened to A$ 29.6 million as at 10 February 2014

• Two fully carried high impact exploration wells to be drilled in Senegal targeting substantial oil resource potential

• First Senegal well expected to start drilling in Q1 2014

FAR Ltd (“FAR” or the “Company”, ASX:FAR) has received US$ 5 million from Capricorn Senegal Ltd a subsidiary of Cairn Energy (“Cairn”) in relation to its Senegal Farm-out deal [following final approvals from the Senegal government].

FAR will be drilling two back to back wells in Senegal the first of which is expected to spud in Q1 2014.

The receipt of the US$5 million of cash proceeds strengthens the Company’s cash position to AU $29.6 million as at 10 February 2014.

FAR in Senegal

During 2103 FAR announced two major farm-in agreements in relation to its offshore Senegal exploration permits with ConocoPhillips and Cairn Energy (a UK listed oil and gas company). Both farm-in agreements have received Senegalese Ministerial approval.

As a result of the two farm-in deals with ConocoPhillips and Cairn, FAR has secured full funding for its share of two exploration wells totalling approximately US$200 million (100% basis, FAR estimate) and net cash payments received 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 this exploration phase.

FAR transferred operatorship of the Senegal blocks to Cairn in August 2013 and well preparations have progressed satisfactorily. The Transocean owned drilling rig, the Cajun Express, has commenced a multi joint venture African drilling campaign, operated by Cairn, which includes FAR’s two high impact Senegal exploration wells. Cairn is currently drilling the second well in the campaign and FAR’s two Senegal wells will follow completion of that well.

The two back to back exploration wells, the first of which is expected to start drilling in Q1 2014, will target approximately 1.5* billion barrels (225* million net to FAR) of unrisked best estimate prospective resources (Reference ASX release 27 February 2013). With approximately 900 million barrels (135 million net to FAR) to be tested in the deep water ‘fan’ play and 600 million barrels (90 million net to FAR) to be tested in the ‘shelf’ play or ‘L’ Prospect*. (Reference ASX release 27 February 2013).

* 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.

*Refer to Cautionary Statement above and on Page 2 of this report relating to estimates of prospective resources

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Both Senegal 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 7,490km2. From 2,050km2 of modern 3D seismic data acquired in the blocks, FAR mapped 11 potentially drillable prospects as well as numerous other leads, many supported by associated seismic amplitude responses in plays including the ‘fan’ and ‘shelf’. FAR has assessed its Senegal blocks to have prospective resources of 3.585* billion barrels of oil (538* million net to FAR). (Reference ASX release 27 February 2013).

Disclaimers

*Cautionary Statement for Prospective Resource Estimates - 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 Resource Estimates – All prospective resource estimates presented in this report are prepared at as at 27 February 2013. (Reference: FAR ASX release of 27 February 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 . 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 .

Competent Person Statement Information – In this report information 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, 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 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.

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.

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