FAR LIMITED — M&A Activity 2017

Jul 2, 2017

3 July 2017

The Republic of The Gambia approves acquisition of 80% stake in high potential offshore blocks

• FAR has acquired 80% working interest and Operatorship in the highly prospective offshore Blocks A2 and A5 in The Gambia from ERIN Energy Corporation

• Blocks A2 and A5 located on trend and adjacent to FAR’s Senegal blocks and world class SNE field with potential prospective resources of more than one billion barrels of oil*

• Large prospects identified similar to the SNE field “shelf edge” play

• FAR to fund ERIN through an exploration well expected to be drilled late 2018

The Government of The Republic of The Gambia in West Africa has approved the assignment of an 80% interest in offshore Blocks A2 and A5 in The Gambia to FAR Limited (ASX: FAR) from the New York and Johannesburg Stock Exchange listed ERIN Energy Corporation.

The acquisition is a significant expansion of FAR’s exploration portfolio in the rapidly emerging offshore Mauritania-Senegal-Guinea-Bissau Basin in West Africa.

The farm-in deal requires FAR to fund ERIN up to US$8 million through an exploration well expected to be drilled late in 2018.

Blocks A2 and A5 are adjacent to and on trend with FAR’s world class SNE oil field discovery and have significant exploration potential. The blocks cover an area of approximately 2,682km[2] within the rapidly emerging and prolific Mauritania-Senegal-Guinea-Bissau (“MSGB”) Basin and lie approximately 30km offshore in water depths ranging from 50 to 1,200 meters (see Figures 1 and 2).

In combination, Blocks A2 and A5 have potential to contain prospective resources in excess of one billion barrels of oil (on an unrisked, best estimate, 100% basis*).

From 1,504km[2] of modern 3D seismic data acquired in the blocks, FAR has identified large prospects similar to the “shelf edge” plays FAR is targeting in Senegal (see Figure 2). FAR has mapped three potentially drillable prospects and leads.

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Figure 1: Blocks A2 / A5, The Gambia location

*Refer to Prospective Resource Estimates Cautionary Statement on page 3

FAR and ERIN expect to undertake 3D seismic reprocessing and interpretation during 2017 in order to mature prospects for drilling in late 2018.

Under the terms of the farm-in agreement, a wholly owned subsidiary of FAR, has acquired an 80% interest and Operatorship of offshore Blocks A2 and A5 from ERIN Energy Corporation. FAR will make an upfront payment of US$5.18 million and fund up to US$8.0 million of ERIN’s share of the cost of an exploration well. If ERIN’s share of the exploration well costs is less than US$8.0 million then the balance is to be paid in cash. FAR’s share of the cost of the exploration well is expected to be in the order of US$25.0 to US$30.0 million. The well when drilled will satisfy the current period work commitments for Blocks A2 and A5. FAR has issued a parent company guarantee in favour of the Government of The Gambia in accordance with the Blocks A2 and A5 licence terms. ERIN will retain a 20% working interest in Blocks A2 and A5. The well, to be funded by FAR, is to be drilled before 31 December 2018 or such later date if the current licence periods are extended. The well can be carried out in either Block A2 or Block A5.

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Figure 2: Location map Blocks A2 and A5 Gambia prospects and leads in relation to SNE field

FAR Managing Director Cath Norman said:

“FAR is very grateful to have received formal approval from the Government of The Republic of The Gambia for this assignment of interest to FAR. We look forward to working with the Government and our joint venture partner ERIN Energy to carefully and thoroughly explore these highly prospective offshore blocks.

Our discoveries immediately to the North in offshore Senegal provide significant encouragement for the future discovery of oil and gas in Blocks A2 and A5 in The Gambia.

The significant prospectivity that we have identified in Blocks A2 and A5 are analogous play types to those successfully drilled by FAR in Senegal providing high potential to create value for both the people of The Gambia and FAR shareholders.

FAR is committed to building a strong strategic partnership with the Government of the Republic of The Gambia and looks forward to working with the Government and ERIN Energy.”

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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.

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 and 23/08/2016 (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.

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