FAR LIMITED — Capital/Financing Update 2016

Mar 14, 2016

15 March 2016

BEL-1 well starts drilling offshore Senegal

Following the successful drilling of the first two appraisal wells offshore Senegal, the third well to be drilled as part of the SNE oil field appraisal program offshore Senegal has been spudded. The BEL-1 well will be drilled in approximately 1,100 metres of water and drilled to a TDVSS (total vertical depth subsea) of approximately 2,757 metres before an evaluation program including logging and coring is undertaken (refer figures 1 and 2).

The aim of the appraisal program is to progress towards proving a minimum economic field size for the SNE discovery, which FAR estimates to be approximately 200 million barrels of oil. In addition, the BEL-1 well will drill the Bellatrix exploration prospect which will evaluate the untested Buried Hills play. BEL-1 will also be deepened to appraise the northern portion of the SNE oil field (refer figure 3).

Drilling of the BEL-1 well will be followed by a wireline logging and coring program before the well is plugged and abandoned according to plans. BEL-1 operations are expected to be completed next month.

FAR and its joint venture partners will be operating a tight hole policy, and therefore FAR does not anticipate making any further announcements regarding the drilling program until the BEL1 well has reached TDVSS.

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Figure 1 and 2: Location of SNE-2, SNE-3 and BEL-1 evaluation wells

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----- Start of picture text ----- BEL-1 SNE-2 SNE-1 SNE-3Bellatrix----- End of picture text -----

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

Figure 3: SNE discovery well and appraisal program including BEL-1

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Disclaimers

*Prospective and Contingent Resource Estimates Cautionary Statement - With respect to the prospective and contingent 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 and Contingent Resources - All prospective and contingent resource estimates presented in this report are prepared as at 27/2/2013, 11/3/2014, 5/2/2014, 13/04/2015 and 8/02/2016 (Reference: FAR ASX releases on these dates) . 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.

For more information please contact FAR Limited Cath Norman Managing Director T: +61 3 9618 2550 Gordon Ramsay Executive General Manager, F: +61 3 9620 5200 Business Development E: info@far.com.au Media enquiries Ian Howarth Collins Street Media T +61 3 9600 1979

Level 17, 530 Collins Street Melbourne VIC 3000 Australia www.far.com.au

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