MEC RESOURCES LIMITED — Capital/Financing Update 2007

Aug 6, 2007

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7 August, 2007

ASX (Code:MMR) Company Announcements Office

MEC IPO Advent Energy Ltd gains access to key Cooper Basin Oil and Gas Projects

MEC is pleased to confirm that its investee Advent Energy Ltd (“Advent”) has entered into two Farmin agreements in the South Australian Cooper Basin with Victoria Petroleum N.L., Impress Energy Ltd and Roma Petroleum N.L.

The Farmin agreements cover the Typhoon and Catalina blocks in Petroleum Exploration Licenses (“PEL’s”) 104 and 111 situated in the western Cooper basin of South Australia. The conditional Farmin agreements enable Advent to earn up to a 50% interest in the Catalina and Typhoon blocks in these PEL’s.

With these farmin agreements, Advent Energy has entered into a working relationship with Victoria Petroleum and its JV partners who hold a significant acreage position in the highly prospective western Cooper Basin. The Victoria Petroleum led Joint Venture is one of the most active drillers in the South Australian Cooper Basin with some eight wells planned to be drilled over the next 6 months.

Advent Energy is thus well positioned to obtain access to drilling rigs and associated services to drill the Typhoon and Catalina block prospects as required.

The Advent Farmin provides Advent with the right to participate in four wells with the Victoria Petroleum led Joint Venture in the prospects present in the PEL 104 Typhoon Block and PEL 111 Catalina Block (see attached maps).

Victoria Petroleum and JV Partners.

Current production from the Victoria Petroleum and JV partners oil fields in the South Australian Cooper Basin fields is gross of 210 barrels of oil per day with an objective to increase production to 550 barrels of oil per day in 2007.

Victoria Petroleum NL’s (Vicpet) Managing Director John Kopcheff said:

“The Victoria Petroleum led JV has encountered significant exploration success at Growler and Wirraway in proving up a new Jurassic “Oil Fairway” and oil production province in the western part of PEL 104. We believe that this Jurassic “Oil Fairway” has the potential for an in place oil resource of up to 100+ million barrels of oil in the western part of PEL 104 and our adjoining PEL 111 permit, if oil is present”

“The 100% exploration success to date in the “Oil Fairway “ has led the PEL 104/ PEL 111 Joint venture to focus its exploration activities in this area. This focus on the Jurassic by Victoria and its partners provides an opportunity for an incoming party to test with the drill the 18 Permian prospect and leads that have been mapped to the east of the Jurassic “Oil Fairway” in the Typhoon and Catalina blocks”

“Given that these Permian prospects are very similar in nature to those being successfully drilled immediately to the south in the adjacent permit PEL 106 by the Great Artesian Oil and Gas Limited Joint venture with exploration drilling success rates of around 50 - 75%, we would anticipate by analogy similar exploration success rates in the Typhoon and Catalina blocks.”

“We are pleased that Advent Energy and its advisers MEC Resources have been quick to recognize the opportunity to explore in the Typhoon and Catalina blocks and secured Farmin agreements with the Victoria Petroleum led PEL 104 and PEL 111 JV’s.”

“The level of expertise which Advent has access to through its MEC appointments is significant and offers good potential for its project developments. Mr Ding Gui Ming of MEC was formerly head of one of the world’s largest oil producers, China National Petroleum Company and this level of expertise was a strong factor in MEC’s decision to accept the Typhoon and Catalina Block farmin proposals identified by Advent Energy.”

PEL 104 and 111 –Background

Cooper Basin Prospect Positioning

PEL 104 is immediately adjacent to the Tirrawarra Oil Field, the largest oil field in the Cooper Basin and onshore Australia, with estimated recoverable reserves of 70 million barrels of oil and 340 billion cubic feet of gas. The Typhoon Farmin Block is immediately adjacent to the Fly Lake Oil and gas Field to the east and adjacent and to the west of the Santos operated Callabona Jurassic Oil Field production licence.

The PEL 104 Typhoon Block is considered highly prospective for Permian oil and gas in view of its immediate proximity to producing oil and gas fields and the presence of prospective Permian section within the block.

The PEL 111 Catalina Block lies to the north of the adjacent PEL 104 Typhoon Block. The Catalina Block is also immediately adjacent to the Fly Lake Oil and gas Field to the south and adjacent and to the east of the Santos operated Charo Jurassic Oil Field production licence.

Mapping of seismic data within the Typhoon and Catalina Blocks has identified at least eighteen leads and prospects with an unrisked cumulative maximum (P10) recoverable oil and gas resource potential for theTirrawarra and Patchawarra targets of up to 93 billion cubic feet of gas and up 10 million barrels of oil, if oil and gas are present.

Within the Typhoon block, the Tempest and Typhoon prospects are drilling candidates interpreted from the seismic data to have the potential to contain a recoverable resource of up to 18 billion cubic feet of gas and 2 million barrels of oil, if oil and gas is present. Within the Catalina Block, the Catalina Prospect is interpreted from seismic data to have the potential to contain within target Permian Patchawarra sands a recoverable resource of up to 14 billion cubic feet of gas, and 2million barrels of oil, if oil and gas is present. The Catalina Prospect lies six kilometres to the north of the Santos group Fly Lake-Brolga gas field.

About MEC Resources

MEC is an ASX listed company with an investment focus, targeting energy and mineral resources. It has a strong China focus particularly in areas such as oil and gas, coal and iron ore. MEC is registered by the Australian Federal Government as a Pooled Development Fund (PDF) enabling most MEC shareholders to receive tax free capital gains on their shares and tax free dividends.

Recent developments in MEC’s investment portfolio include:-

Rivoli Gas Field development Feasibility Review

MEC’s investee Advent Energy Ltd has been advised that the Commonwealth of Australia, represented by the Department of Defence, has commissioned Advent joint venture partner Strike Oil, to undertake a Front End Engineering Design (FEED) Study to investigate the feasibility of supplying gas from the Rivoli Gas Field, located 7km southeast of the town of Exmouth, to fuel power generation for the Defence Communication Station located north of the town. The Rivoli gas field is contained within EP 325, an oil and gas Permit in which Advent holds a participating interest. If approved for development first gas sales would be anticipated some time in 2009. Please refer attached for full details.

Central Petroleum Ltd – Investment and Joint Venture

MEC has announced that it has invested $1,250,000 into Central Petroleum (Central) making it the fourth largest investor in Central. In addition MEC’s investee Advent has also entered into a major farmout deal with Central. Central Petroleum is one of Australia’s largest net onshore acreage holders with permits spanning more than 230,000 square kilometers. Central’s first three-well program is planned to be drilled during the latter half of 2007 targeting significant resource objectives including a well to probe the Blamore oil prospect, which contains an estimated 94 million barrels of oil in “high” P10 prospective recoverable resource.

Strategic Senior Appointments

Recent strategic MEC appointments have included the appointment of former Schlumberger Asia President, Mr Goh Hock as Chairman of the board of Directors and the appointment of Mr Ding Gui Ming, the former head of one of the world’s largest oil producers, as a senior member of the MEC Advisory Panel. Mr Ding is a former senior Chinese Government Ministerial official with significant networks at the highest level in China. He was the former Head of Exploration for the China National Petroleum Company (CNPC), where he directed the exploration activity of more than 20 oilfields all over China. Mr Ding last served as Commissioner of the China State Asset Administration Office, where he reported directly to the Prime Minister’s office and supervised the reform of major Chinese state enterprises.

Attribution Statements

MEC is an exploration investment company and relies on the resource and ore reserve statements compiled by the companies in which it invests. All Mineral Resource and Reserve Statements have been previously published by the companies concerned. Summary data has been used. Please refer to ASX releases for details and attribution. Unless otherwise stated all resource and reserve reporting complies with the standards outlined in the JORC Code. Resources quoted in this report equal 100% of the resource and do not represent MEC’s or its investees equity share.

For further enquiries, contact: David Breeze Executive Director Tel: 61 8 9328 8477 Email: david@mecresources.com.au

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----- Start of picture text ----- VPE Permit InterestsTyphoon & Catalina Farmin blocks1----- End of picture text -----

PEL 104/111 Typhoon & Catalina Farmin blocks

• 18 prospects & leads

• CATALINA � Adjacent to major oil & gas province &

• Catalina Farmin liquid rich corridor on Block the Patchawarra

• Growler TEMPEST Trough

• Jurassic Oil discovery TYPHOON � 8 oil pools adjacent Typhoon with up to 84 Farmin Block mmbbls rec. oil � 27 gas fields adjacent with up to 718 bcf rec. gas & 27 mill bbls liquids (condensate & LPG) 2

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----- Start of picture text ----- PEL 104/111 Typhoon & CatalinaFarmin Block Permian prospectsTyphoon & CatalinaCatalina Farmin FarminBlock Area BlockTirrawarraPEL 111Oil FieldA PEL 104 Typhoon Catalina & 70 mmbo 340 bcfgGrowler TempestJurassic Oildiscovery TyphoonFarmin Field 78 bcfgFly Lake Gas BBlockPEL 106Cadenza/Paranta Andree/LeleptianGas Fields 10 bcfg Gas Field 20 bcfg3----- End of picture text -----

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----- Start of picture text ----- Hydrocarbon migration from Cooper toEromanga basins – PEL 104/ PEL 111NW PEL 104/ 111 PEL 104/111 PermianJurassic “Oil gas/oil prospectsFairway”A BWirraway/Growler Oil Field Typhoon & CatalinaFarmin blocksCOOPER BASIN PEL 104/111SCHEMATIC CROSS SECTION----- End of picture text -----