FAR LIMITED — Capital/Financing Update 2018

Apr 25, 2018

26 April 2018

Stena DrillMAX drillship to drill giant Samo prospect offshore The Gambia

• Drilling rig contract signed with Stena Drilling for the Samo-1 well offshore The Gambia

• The Stena DrillMAX successfully completed the 2017 drilling campaign offshore Senegal

• Giant Samo prospect is assessed to contain 825mmbbls oil (best estimate)*, 40% net to FAR

• FAR to operate the Samo-1 well with operations commencing in late 2018

FAR Limited (ASX:FAR) has awarded a drilling rig contract to Stena Drilling. Stena Drilling will provide and operate the Stena DrillMAX drillship to drill the giant Samo prospect offshore, The Gambia, scheduled for late 2018.

FAR’s Managing Director Cath Norman said, “We are delighted to make this announcement as the Stena DrillMAX was our rig of choice given it completed a highly successful, efficient and under budget drilling campaign for our Senegal joint venture in 2017.

FAR has secured the rig at a very attractive operating day rate which is in line with 2017 rates. The FAR drilling management team consists of several personnel involved with the Senegal joint venture’s previous drilling campaigns. In securing many of these core team members in conjunction with the Stena DrillMAX, we are well positioned to achieve solid operating performance in The Gambia.

This is a positive milestone for FAR as we prepare to drill the Samo-1 well later this year, the first well offshore The Gambia for 40 years.”

==> picture [214 x 239] intentionally omitted <==

Figure 1. A2 & A5 prospects and leads

The Samo-1 exploration well has a primary target which FAR estimates to contain a best estimate prospective resource of 825 mmbbls of oil*. The prospective resource estimates for the Samo-1 well are outlined in Table 1 on page 2. The Samo prospect has two target intervals, is on trend and shares many similarities with the giant SNE oil field. As such it is very highly rated with an estimated chance of success (CoS) in one or both targets, endorsed by RISC, of 55%. It is rare to have an exploration prospect with such a high CoS but this reflects the adjacent discovery at SNE and the confidence FAR Limited has developed in exploring in the play fairway which is yet to experience a dry well.

Drilling of the Samo-1 well is expected to commence in late 2018. FAR Gambia Limited, a wholly owned subsidiary of FAR limited, is operator of the Gambia Block A2 Joint Venture and has awarded the drilling rig contract to Stena Drilling.

==> picture [596 x 84] intentionally omitted <==

Table 1: Prospective resources assessment of the A2 block, offshore The Gambia

	Gambia prospects	Low Estimate	Best Estimate	High Estimate
		(mmbbls)*	(mmbbls)*	(mmbbls)*
		P90	P50	P10
	Samo	335	825	1713
	Bambo	117	333	902
	Total all prospects	452	1158	2615
	Total net to FAR	362	926	2092

Stena Drillmax

The Stena DrillMAX is a state of the art, dual mast, dynamically positioned, deep water drill ship with a rig crew that has extensive international and regional West African experience. The Stena DRILLMAX is a harsh environment dynamically positioned DP class 3 drillship capable of drilling in water depths up to 10,000’.

General Features:

• Dynamically positioned DP Class 3 drillship

• Capacity up to 3,000m water depth and 10,700m drilling depth

• Length: 228m, Width: 42m

• Accommodation 180 persons

• Dual hoisting mast and drilling tower

• Two BOP systems

• 85,000 barrels of crude storage capability

==> picture [228 x 174] intentionally omitted <==

Stena

Stena AB is one of Sweden’s biggest family-owned companies. Stena Drilling, based in Aberdeen, Scotland is a leading global independent drilling rig operator, focusing on high specification drilling units for harsh frontier environments.

Stena Drilling has had an active role in the building and conversion of rigs whilst also pioneering some of the most leading-edge technologies and innovations in the drilling world

• Refer to Cautionary Statement in this report (page 3) relating to estimates of Prospective Resources

Page 2

==> picture [596 x 84] intentionally omitted <==

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. The Prospective Resource estimates provided in this report are Low Estimate, Best Estimate and High Estimate and represent that there is a 90%, 50% and 10% probability respectively that the actual resource volume will be in excess of the amounts reported.

Prospective and Contingent Resources - All contingent and Prospective Resource estimates presented in this report are prepared as at 27/2/2013, 11/3/2014, 5/2/2014, 13/04/2015, 13/4/2016, 23/08/2016, 7/2/2017 and 21/11/2017 (Reference: FAR ASX releases of the same 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. The contingent resource estimates provided in this report are those quantities of petroleum to be potentially recoverable from known accumulations, but the project is not considered mature enough for commercial development due to one or more contingencies. The Prospective Resource 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 contingent and Prospective Resource estimates include Government share of production applicable under the Production Sharing Contract.

Competent Person Statement Information - The hydrocarbon resource estimates in this report have 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 Contingent and Prospective Resources in the form and context in which it appears. The Contingent and 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.

• Refer to Cautionary Statement in this report (page 3) relating to estimates of Prospective Resources

Page 3