MEC RESOURCES LIMITED — Capital/Financing Update 2007

Aug 2, 2007

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3 August 2007

ASX (Code:MMR) Company Announcements Office Australian Securities Exchange

OFFSHORE SYDNEY BASIN, PEP-11, NEW SOUTH WALES-Drilling Rig

Please see below text released by Bounty Oil and Gas on PEP-11 in its quarterly report for the period ended 30 June 2007.

Bounty Oil and Gas NL is the operator for the PEP-11 Offshore Sydney Basin project.

MEC through its investment holdings has an interest in the PEP-11 project. The agreement with Bounty Oil and Gas allows for earning an interest of 85% in the project. The announcement text follows:-

“Bounty and its JV partner are in negotiations with a drilling contractor to secure a rig to operate the drilling of Baleen-1 (previously Biggus-1). Bounty will have a carried interest through the drilling of this well, retaining 15% on completion. Additional farm-in partners are being considered for this project. A further extension to PEP-11 is being sought.

The Biggus prospect has the potential to contain over 1.2 Tcf of recoverable gas, which is enough gas to supply Sydney for at least ten years at its current gas consumption rate.”

Yours sincerely

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David Breeze Executive Director

MEC Resources Ltd

ACN 113 900 020 PO Box 317, North Perth, WA 6906 14 View Street, North Perth 6006, Western Australia T: +61 8 9328 8477 F: +61 8 9328 8733 info@mecresources.com.au www.mecresources.com.au

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