FAR LIMITED — Capital/Financing Update 2014

Feb 4, 2014

5 February 2014

Significant hydrocarbon resource potential assessed in FAR’s Guinea-Bissau offshore blocks

• FAR has undertaken a detailed geotechnical evaluation for its 3 offshore blocks in GuineaBissau and completed an assessment of hydrocarbon resources.

• Contingent Resources for East Sinapa oil discovery confirmed of 13.4 million barrels (unrisked 2C, 100% basis) and 2.0 million net to FAR.

• Total Prospective Resources for the 3 blocks assessed at 954 million barrels of oil (unrisked Best Estimate, 100% basis) and 143 million net to FAR.

• The large West Sinapa prospect is scheduled to be drilled in late 2014.

• Shallow water depths and strong evidence of functioning hydrocarbon system (with 2 existing discoveries) provide for a low cost environment with moderate exploration risk.

FAR has completed detailed geotechnical studies and assessed significant hydrocarbon resource potential in its Guinea Bissau 3 blocks offshore, Sinapa Block 2 and Esperanca Blocks 4A/5A in West Africa. (FAR: 21.43% paying interest, 15% participating interest). FAR’s hydrocarbon resources assessment is unaudited.

The existing East Sinapa oil discovery is estimated to contain Contingent Resources of 13.4 million barrels of oil (unrisked, 2C, 100% basis), with 2.0 net to FAR. East Sinapa is also estimated to contain Prospective Resources of 7.5 million barrels of oil (unrisked, Best Estimate, 100% basis) with 1.1 million net to FAR. The Sinapa-2 discovery well drilled by Premier in 2004 encountered 124 metres of gross oil column with further oil encountered updip by a side track well.

The West Sinapa prospect which is expected to be drilled by the joint venture in late 2014 is estimated to contain Prospective Resources of 64.7 million barrels of oil (unrisked, Best Estimate, 100% basis) with 9.7 million net to FAR. The prospect is assessed to have significant upside with 251.7 million barrels of oil (unrisked, High Estimate, 100% basis) and 37.8 million barrels net to FAR.

A further 14 prospects and leads have been identified in the permits. The total combined Prospective Resources for the 3 blocks are estimated to contain 954 million barrels of oil (unrisked, Best Estimates, 100% basis) with 143 million net to FAR. An immediate follow up well is planned in 2014 in the event of success on the West Sinapa well.

“FAR’s hydrocarbon resource assessment confirms the billion barrel oil potential of FAR’s offshore Guinea Bissau permits. The two existing discoveries in the permits provide clear evidence of a functioning hydrocarbon system thus the chance of exploration success in our first well in the permits, planned for late 2014, is relatively high. With the permits being located in benign shallow waters, the costs of exploration and development are commercially attractive. Our Guinea-Bissau permits are an emerging strong component of our diversified African exploration portfolio and have the potential to add significant value for our shareholders.”

FAR’s Managing Director

*=Refer to Cautionary Statement in this report (Page 7) relating to estimates of prospective resources

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FAR’s Guinea-Bissau Blocks

FAR holds a 15% participating interest and 21.43% paying interest in Sinapa Block 2 and Esperanca Blocks 4A/5A in offshore Guinea-Bissau. Petroguin, the National Oil Company, has a 30% participating interest which is non-paying during the exploration phase. Svenska Petroleum Exploration Guinea Bissau A.B. (“Svenska”) holds the remaining participating interest and is Operator of the permits. The Block 2 joint venture is planning to drill a well in late 2014.

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FAR’s West Africa permits and location of FAR’s Guinea-Bissau permits

East Sinapa

The East Sinapa discovery was made by Premier in 2004 with the drilling of Sinapa-2 well. The well intersected a salt related structure with a gross oil column of 124 metres (measured depth), and oil was also encountered updip by a sidetrack well. A Competent Persons Report prepared by Synergy in 2012 made a probabilistic assessment of the recoverable hydrocarbon volume intersected by these wells and assessed Contingent Resources of 13.4 million barrels of oil (unrisked 2C, 100% basis) with 2.0 million net to FAR. Additional potential was also recognised by Synergy in deeper sands which were water bearing in the wells, but were assessed to have the potential to contain trapped oil in up dip locations against the salt dome.

Since then, 3D seismic was acquired over a large portion of the acreage including the East Sinapa discovery. The results of this did not materially impact on the Synergy assessment of Contingent Resources.

West Sinapa

The West Sinapa prospect is a salt related feature adjacent to the East Sinapa discovery. In 2010 a 1,640 km[2] 3D seismic survey was acquired over a large portion of the acreage including the West Sinapa prospect. Svenska received the processed data in December 2012 and following preliminary interpretative work, the data was provided to FAR in August 2013. FAR has since completed a detailed interpretation of the processed 3D data.

The modern 3D seismic and geological data indicates that the reservoir at West Sinapa and other prospects may be greatly improved over that of the Sinapa-2 well.

The East Sinapa discovery and the West Sinapa prospect are sufficiently close such that, should drilling on West Sinapa result in discovery of oil, both features could conceivably be developed using a single production facility. The combined Contingent and Prospective Resource potential of the two features is estimated by FAR to be 85.6 million barrels of oil (unrisked, 2C and Best Estimate, 100% basis) with an upside potential of 324.8 million barrels (unrisked, 3C and High Estimate, 100% basis).

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*=Refer to Cautionary Statement in this report (Page 7) relating to estimates of prospective resources

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West Sinapa Sinapa
Prospect Discovery
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Depth map and seismic image showing the Sinapa discovery and West Sinapa prospect

Other Prospects and Leads

In addition to the Sinapa-2 discovery well, a significant oil column was encountered in PGO 3 in Block 2 (drilled by Exxon in 1969) which tested a tilted fault trap. In its interpretation of the modern 3D seismic data, FAR has assimilated existing well data in the vicinity of its Guinea-Bissau permits including the Sinapa-2 and PGO 3 discoveries, earlier 2D seismic data acquired over the permits, geotechnical analysis prepared by Premier and the current Operator, and FAR’s extensive regional geotechnical regional database including data and analysis from its other neighbouring permits in AGC and Senegal.

Mapping of the modern 3D seismic data has resulted in a number of analogous and potentially larger prospects being identified; both salt related features and tilted fault traps. A conclusion of significance from FAR’s assessment is that the large Atum structure identified from 3D data is considered to be analogous to the prospective shelf edge structures that FAR has identified in its Senegal acreage, one of which will be drilled in early 2014. Atum has a prospective resource potential of 471.7 million barrels (unrisked, Best

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Block 2 and Blocks 4A/5A prospects

Estimate, 100% basis). A number of salt related prospects have also been identified, including the North Solha prospect, which have the potential to be tied back to a future production facility at Sinapa, should that eventuate.

Combined Prospective Resources for the Sinapa Block 2 lease and the Esperanca Blocks 4A/5A lease have been assessed at 954* million barrels of oil (un-risked, Best Estimate, 100% basis).

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*=Refer to Cautionary Statement in this report (Page 7) relating to estimates of prospective resources

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Hydrocarbon Resource Estimates

The hydrocarbon resource estimates for Block 2 and Blocks 4A/5A, offshore Guinea-Bissau presented below are internal unaudited estimates prepared by FAR as at 4 February 2014. The estimates 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 and have been prepared on a probabilistic basis. The estimates included in the tables are unrisked and should be read in conjunction with the notes that follow.

Contingent Resources

Contingent Resources
	Play	1C (P10) mmbo	2C (P50) mmbo	3C (P90) mmbo
East Sinapa	Salt dome	4.4	13.4	38.9
Total (100%)		4.4	13.4	38.9
Net to FAR		0.7	2.0	5.8

Prospective Resources

Prospective Resources
	Play	Low Estimate mmbo	Best Estimate mmbo	High Estimate mmbo
East Sinapa Deep (prospect)	Salt dome	1.8	7.5	34.2
West Sinapa (prospect)	Salt dome	17.7	64.7	251.7
North Solha (prospect)	Salt dome	6.0	28.4	131.6
Atum (prospect)	Tilted fault block	144.0	471.7	1569.6
Arinca (prospect)	Salt dome	10.0	59.2	393.0
Sabayon (prospect)	Salt dome	3.4	18.1	88.2
Bicuda (lead)	4 way dip	15.2	52.6	172.6
Bica (lead)	Titled fault block	5.3	36.0	116.6
Espargos (lead)	Salt dome	5.1	22.4	84.1
Espadarte (lead)	Salt dome	15.1	39.4	101.1
Encharcada (lead)	Salt dome	7.4	16.9	37.3
Espetada (lead)	Salt dome	3.8	14.6	55.9
Empada (lead)	Salt dome	14.6	65.0	257.6
Ervas (lead)	Salt dome	3.1	9.1	30.0
El Linguado (lead)	Salt dome	15.8	47.7	176.8
Total (100%)		269	954	3500
Net to FAR		40	143	525

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*=Refer to Cautionary Statement in this report (Page 7) relating to estimates of prospective resources

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Notes to tables

1. The estimated quantities of Prospective Resources 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. The estimated quantities of Contingent Resources stated in the tables above that may potentially be recovered by the application of a future development project(s) relate to discovered accumulations. These estimates have an associated risk of development. Further appraisal and evaluation is required to determine their commercial viability.

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 Contingent and Prospective resource estimates have been estimated using probabilistic methods.

4. Reservoir parameters used for Estimating Prospective Resources are based on detail petrophysical data obtained from 10 previous wells that have been drilled in the Guinea Bissau vicinity.

5. The Low Estimates, Best Estimates and High Estimates and 1C, 2C and 3C represent respectively that there is a 90%, 50% and 10% probability that the actual resource volume will be in excess of the amounts reported.

6. The estimates for unrisked Prospective Resources have not been adjusted for both an associated chance of discovery and a chance of development. The Company estimates the chance of discovery for West Sinapa well at 36% and estimates the chance of discovery for other leads and prospects identified is estimated to range from 7% to 22%.

7. The chance of development for East Sinapa is estimated at 75%, consistent with Synergy’s 2012 Competent Persons Report. The chance of development is principally dependent on a commercially viable quantity of hydrocarbons being discovered.

8. The gross (100% basis) and net to FAR Prospective and Contingent resource estimates in the tables above include Government share of production applicable under the Joint Venture Agreement (a form of production sharing contract).

9. 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.

10. Contingent Resources means those quantities of discovered petroleum which are potentially recoverable but not yet considered mature enough for commercial development due to technological or business hurdles.

11. “mmbo” means million barrels of oil.

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*=Refer to Cautionary Statement in this report (Page 7) relating to estimates of prospective resources

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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 holds a significant acreage position in the emerging exploration hot spots of East and West Africa transform margins. FAR has identified a sizeable prospect and lead portfolio in its acreage that is estimated to contain prospective resources of over 7 billion barrels of oil on a gross un-risked best estimate basis.

FAR recently signed two farm in deals with ConocoPhillips and Cairn Energy a leading UK independent to secure its share of funding for 2 high impact offshore exploration wells in Senegal to be drilled in early 2014.

Recent takeover activity, drilling and major gas discoveries close to FAR’s Kenyan acreage have heightened interest in the region generally and in FAR’s acreage position specifically. Exploration activity is ramping up in the Kenya offshore arena with 6 high impact wells expected to be drilled in the next 12 months.

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_ _.**

Hydrocarbon Resource Estimates – All Contingent and Prospective resource estimates presented in this report are prepared at as at 4 February 2014. 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. The Prospective Resource estimates are unrisked and have not been adjusted for both an associated chance of discovery and a chance of development. The Contingent Resources estimates are unrisked and have not been adjusted for a chance of development. The 100% basis and net to FAR hydrocarbon resource estimates include Government share of production applicable under the Production Sharing Contract .

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.

– 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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*=Refer to Cautionary Statement in this report (Page 7) relating to estimates of prospective resources