FAR LIMITED — Capital/Financing Update 2016

May 18, 2016

19 May 2016

Senegal Drilling Update: Successful SNE-4 appraisal well

The SNE-4 appraisal well offshore Senegal has been safely drilled, cored and logged ahead of schedule and under budget. Well results have successfully demonstrated the extension of the SNE oil field upper reservoir units in the eastern portion of the SNE field.

The Operator, Cairn Energy PLC, has provided notice to release the Ocean Rig Athena drill ship after completion of SNE-4 operations. Evaluation of the extensive data set acquired from the highly successful SNE-2, SNE-3, BEL-1 and SNE-4 appraisal wells is continuing.

The JV is evaluating development options and will determine the most effective way to further appraise this world class oil accumulation. Drilling is expected to resume in H2 2016.

The SNE-4 appraisal well results confirmed the following:

• The extension of reservoirs in the eastern portion of the SNE field located 5km east and down dip from the SNE-3 well location (refer Figures 1, 2, 3)

• Presence and correlation of principal reservoir units between each of the wells across the field

• Oil bearing upper reservoir sands of similar quality to those encountered as gas bearing elsewhere in the field

• Shallower gas sands first discovered in BEL-1 and SNE-3 were also present and gas bearing in SNE-4. The potential for down dip oil in these extensive reservoirs is being assessed

• Gross oil column of 102m

• Multiple samples of gas, oil and water recovered to surface and SNE-4 has confirmed the same 32 degree API oil quality as seen in other wells across the SNE oil field

• 108m of continuous core was taken across the oil bearing reservoir interval with 100% recovery

• Long term monitoring gauges will be installed

The positive result from SNE-4 has further confirmed the scale and extent of the SNE field resource.

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Figure 1: FAR licences offshore Senegal

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Figure 2: SNE field outline with well locations and interpreted gas-oil and oilwater contacts

FAR Managing Director Cath Norman said:

“ FAR is delighted with the result from the the SNE-4 well which has confirmed reservoir quality and oil in the upper reservoir section of the field. Our joint venture has now drilled 6 successful wells offshore Senegal with a 100% success rate.

“We are also very pleased with the overall Ocean Rig Athena drilling and evaluation operations which have come in significantly under planned schedule and budget. The Joint Venture is using the extensive data set acquired from the SNE appraisal wells to evaluate development options and determine the best approach for future appraisal drilling. The SNE-4 well will have gauges installed that, together with SNE-3 gauges, can be used to monitor oil field pressures.

“We anticipate completing a review of the SNE field contingent resources later in this quarter including the results from the BEL-1 and SNE-4 wells and core data from the 2015/6 drilling program.

“We look forward to updating our shareholders as the evaluation of the SNE field progresses and plans to resume drilling are finalised.”

SNE-4 well

SNE-4 is the fourth successful SNE oil field appraisal well. It is located in 942m of water approximately 85km offshore in the Senegal Sangomar Deep Offshore Block. SNE-4 was drilled to a depth of 2,944m below sea level (TVDSS) and was located to appraise the eastern extent of the oil field, where it has confirmed the nature of the upper reservoir units in the oil zone. Gauges will be set in the SNE4 well to allow for future monitoring of the upper reservoirs, along with those already installed in SNE-3.

The SNE-4 well is now being plugged and abandoned as planned. Evaluation of the extensive data set acquired from the highly successful SNE-2, SNE-3, BEL-1 and SNE-4 appraisal wells, including 2 DST’s and over 600m of core is ongoing. The Operator is currently preparing for the next phase of appraisal drilling on the SNE field.

Senegal PSC partners: Cairn Energy plc (Operator) 40%, ConocoPhillips 35%, FAR 15%, Petrosen 10%.

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Figure 3: SNE field outline with SNE-4 location Figure 4: SNE field schematic cross section showing SNE-1 and SNE-4

For more information please contact

FAR Limited Cath Norman Managing Director Gordon Ramsay Executive General Manager, Business Development Media enquiries Ian Howarth Collins Street Media

T: +61 3 9618 2550 Level 17, 530 Collins Street F: +61 3 9620 5200 Melbourne VIC 3000 Australia E: info@far.com.au www.far.com.au

T +61 3 9600 1979