MEC RESOURCES LIMITED — Capital/Financing Update 2007

Jul 30, 2007

14 View Street, North Perth Western Australia 6006 Telephone: + 618 9328 8477 Facsimile: + 618 9328 8733 admin@mecresources.com.au

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31 July 2007

Dear Shareholder,

Invitation to participate – MEC Resources Ltd Share Purchase Plan

The Directors wish to provide a limited opportunity to shareholders to maximize the benefits of their current MEC shareholding by participation in a Shareholder Share Purchase Plan (‘SSPP’) prior to 17[th] August 2007. These dates are indicative only. The Company may vary the dates and times of the offer without notice. Accordingly shareholders are encouraged to submit their Acceptance Form as soon as possible.

Each shareholder is limited to subscribe for a minimum of $1,000.00 and a maximum of $5,000.00 worth of shares at a price of 10 cents per share. The offer has been strictly limited to raise a maximum of $1,567,800 and thus applications will be processed on a first received first accepted basis. As the company has over 1,800 shareholders not all applicants may receive an allotment of shares if all shareholders applied for their full entitlement.

MEC has a strong China focus particularly in areas such as oil and gas, coal and iron ore. I am pleased to enclose the latest releases covering significant developments in MEC’s investment portfolio. MEC will continue to further develop its investments including a planned IPO of investee Advent Energy.

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.

Funds raised from the ‘SSPP’ will be used for existing investments, additional working capital and to meet the anticipated expenses of the issue estimated at $14,000.00

The ‘SSPP’ is an exclusive share offer (free of all brokerage and commission charges) made only to those shareholders registered as holders of fully paid shares in the Company at 5.00pm (WST) on the 25 July, 2007.

14 View Street, North Perth Western Australia 6006 Telephone: + 618 9328 8477 Facsimile: + 618 9328 8733 admin@mecresources.com.au

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The Company reserves the right to place any shares not taken up under the ‘SSPP’ with third party investors following completion of the ‘SSPP’. Such a placement may be underwritten and an underwriting fee paid.

Participation in the ‘SSPP’ is entirely at the option of the shareholder and the offer is non-renounceable. The market price of the shares may change between the date of this offer and the date when the new shares are issued.

A total of 15,678,000 shares are being offered and if fully subscribed will increase the number of shares on issue to 67,938,942. The number of shares to be issued under the ‘SSPP’ will come within the Company’s capacity to issue up to 30% of its capital in an ‘SSPP’.

Key Dates-Timetable for the offer:

Record date for entitlements: 5pm WST on 25[th] July 2007. Closing date for applications: 5pm WST on 17[th] August July 2007.

If you have any questions regarding the Shareholder Share Purchase Plan or how to deal with this Offer, please contact your stockbroker or professional adviser or MEC Resources Ltd’s share registry, Security Transfer Registrars on (08) 9315 2333.

To subscribe for shares please:

Fill in the share application form then place this form and a cheque for the amount desired and post to be received on or before the application closing date of 17[th] August 2007.

Kind Regards,

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Managing Director

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Feasibility of Rivoli Gas Field Development Under Review Strike Oil Limited (ASX: STX) ASX Release 18/07/07

Strike Oil, Operator of Carnarvon Basin Permit EP325, is pleased to announce: The Commonwealth of Australia, represented by the Department of Defence, has commissioned Strike Oil (Strike) 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. If approved for development, Strike Oil will manage and operate the project and first gas sales would be anticipated some time in 2009.

As invisaged, the project will provide around 8 PJ (petajoules) of gas over a period of 20 years and will replace the diesel fuel currently used to generate power for the Station. As a remote power project, the gas price would need to be sufficient to underwrite the development and operating costs as well as be competitive with the current delivered price of diesel. Commenting on the project, Strike Technical Director, Jim Durrant said: “The establishment of Production Infrastructure in this permit will provide an incentive for further exploration drilling of nearby oil and gas prospects and herald a renewed focus and a new round of activity over all of Strike’s extensive Carnarvon Basin acreage. Strike’s prospective permits in the area contain numerous prospects, including the Baniyas Prospect, with upside potential to 60 million barrels of oil or over 100BCF of gas, which have been developed for a new drilling campaign being put together for the second half of net year. To this end, Strike is looking at looking up a number of prospects and a drilling program to underwrite the importation of a smaller offshore drilling unit more appropriate to the shallow water areas of Strike’s acreage, than the large and expensive deep water rigs currently drilling in the region” The Rivoli Gas Field, in Western Australia Permit EP325, is located in the Carnarvon Basin on the Australian North West Shelf.

Permit EP325 working interests are as follows: Strike Oil: 44.5% (Operator), Victoria Petroleum: 36.1%, Bow Energy: 11.1%, Advent Energy: 8.3%

Investment Overview

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Proposed Rivoli Gas Field Development
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Before moving to CNPC, he was the President of Daqing Oilfield, the biggest oilfield in China with production of 1.2 million barrels per day. In this capacity, Mr Ding managed the oil company as well as the service companies of Daqing Oilfield.

Senior Chinese Oil Figure Joins MEC Resources MEC Resources (ASX: MMR) ASX Release 19/12/06

MEC has appointed Mr Ding Guiming, a former President of the world’s largest oil producers (and former senior Chinese Government Ministerial official) as a key member of its Advisory Panel.

Mr Ding graduated from Chengdu Geology University majoring in geology. He is also Director of LianZhongYisheng Petroleum Exploration Co. Ltd, a Beijing based company.

MEC Chairman Mr Hock Goh said “Mr Ding will provide MEC with significant networks at the highest level in China. He will also bring a very successful track record in exploration, drilling and the extraction of oil and gas”.

Ex Schlumberger Asia President to Chair MEC Resources MEC Resources (ASX: MMR) ASX Release 17/11/06

Mr Ding 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. CNPC recently announced USD 86 Billion in revenue.

MEC Resources (ASX: MMR) is pleased to announce that former Schlumberger Asia President, Mr Hock Goh, has agreed to join the Company as Chairman of the board of Directors.

The Company believes that the appointment of a Chairman of Mr Goh’s calibre is an important step in the development of the company’s Australian oil and gas interests.

“In addition to being President of the Daqing Oilfield, one of the largest and most profitable enterprises in China, Mr Ding has had 34 years of extensive, successful oilfield experience that will be invaluable for MEC Resources” said Mr Goh.

Until recently, Mr Goh was President of Network and Infrastructure Solutions, a division of Schlumberger Limited, based in London with revenue in excess of US$1.5 billion. He had global responsibility of Schlumberger’s outsourcing services, security, business continuity and networked related business units.

Mr Ding last served as Commissioner of the China State Asset Administration Office, where he reported directly to the Prime Minister’s office. He supervised the reform of BaoSteel, Wuhan Steel and ChangJiang Shipping, all of which were major Chinese state enterprises. He retired from this position in 2004 achieving the rank of Vice Minister.

Prior to that, Hock was President of Schlumberger Asia based in Beijing, China where he managed their Asian operations consisting of a broad range of services including oil field services, outsourcing, financial software and smartcards. Hock was

Prior to that, Mr Ding was Assistant President of CNPC in Beijing from 1997 to 1998 where he oversaw the exploration and production bureau of CNPC oilfields in China.

ENERGY MINERALS EXPLORATION

responsible for US$800 million in revenue and more than 2,000 employees spread across 17 countries.

Outgoing Chairman Seng Yap will remain as a Non-Executive Director. Mr Yap said “The Company is poised to benefit from the years of experience and contact networks that Mr Goh has developed throughout Asia and the UK in the oil and gas business. Our Australian interests, such as the PEP 11 permit based offshore NSW, will benefit greatly from his involvement”.

In his 25 year career with Schlumberger, Hock held several other field and management responsibilities in the oil and gas industry spanning more than ten countries in Asia, the Middle East and Europe. Hock started as an oil field service engineer in Indonesia in 1980 before moving to Australia where he worked on the rigs in Roma, Queensland, Bass Strait in Victoria and the Northwest Shelf, offshore Western Australia.

Mr Goh is also an operating partner with Baird Capital Partners, the U.S. based buyout fund of Baird Private Equity, providing change-ofcontrol and growth capital to middle-market companies. Baird Private Equity has raised and managed $1.7 billion in capital.

Hock is the Chairman of Netgain Systems, a network monitoring software provider.

He also serves on the Board of Xaloy Holdings, a US based steel components manufacturer for the plastic industry, as well as an independent director of THISS Technologies Pte Ltd, a Singapore based satellite communication provider. He received his B Eng (Hons) in Mechanical Engineering from Monash University, Australia. He also completed an Advanced Management Program at INSEAD/ France in 2004.

MEC Resources Invests $1.25M into Central Petroleum MEC Resources (ASX: MMR) ASX Release 06/07/07

MEC Resources (ASX: MMR) is pleased to announce that it has agreed to invest $1,250,000 into Central Petroleum (Central) at a price of 20 cents each to receive 6,250,000 shares.

MEC will also be offered one for two options with a subscription price of 2.5 cents, an exercise price of $0.25 and an expiry date of 2010.

Central Petroleum is one of Australia’s largest net onshore acreage holders with permits spanning more than 230,000 square kilometers. The Company is listed on the Australian Stock Exchange.

This follows the recent announcement that the commercial terms of a major farmout deal have been agreed to in a Memorandum of Understanding (MOU) between MEC investee Advent Energy Limited and Central Petroleum.

The deal would include all 18 of Central’s permits and permit applications once they are granted.

The commercial terms of the MOU include the drilling of up to 54 wells and $54 million of seismic at the promoted 40% level with Advent earning a 20% interest in all petroleum pools drilled via the farmout works and a 20% interest in the underlying suite of permits. The MOU is to be advanced to a formal Farmin Agreement requiring the approval of all relevant boards as soon as possible.

Central’s first three-well programme is planned to be drilled during the latter half of 2007 and will target the Mount Kitty prospect, which it says hosts an estimated 1.7 trillion cubic feet of wet gas and 105 billion cubic feet of helium in “high” P10 prospective recoverable resources, according to independent geological reports.

According to Central the planned programme also includes the drilling of Ooraminna-2, an updip test of an existing gas discovery that will target 700 Bcf of gas at “high” P10 prospective recoverable resources, and a well to probe the Blamore oil prospect, which contains an estimated 94 million barrels of oil in “high” P10 prospective recoverable resources.

Central is exploring for conventionally reservoired oil, gas and helium targets, as well as coal bed methane in the Pedirka basin. These will be the first onshore exploration wells drilled in the Northern Territory in 15 years. To date, there have been only 37 exploration wells drilled in the Amadeus basin, which yielded three discoveries totalling 150 million barrels of oil equivalent.

According to the Northern Territory Geological Survey department, the Amadeus basin alone could host up to 35 Tcf of gas or 6 billion barrels of oil equivalent in oil and gas in potential reserves. Independent reports have also cited prospective recoverable resources of 34 Tcf to 70 Tcf of coal bed methane in Central’s Pedirka basin permits.

In the event of a major gas discovery, Central plans to utilise any proven reserves as feedstock for a gas-to-liquids plant to produce ultraclean diesel, jet fuel and naphtha for the domestic and overseas markets.

MEC Resources is continuing to identify opportunities in Australian energy and mineral companies. 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. PDF’s are taxed on 15% of income and gains from investments instead of the normal 30% company tax rate.

MEC Confirms Initial Investments MEC Resources (ASX: MMR) ASX Release 17/11/06

MEC has now initiated two investments as outlined in its prospectus objectives.

The investments into Asset Energy Pty Ltd and Advent Energy Ltd are focused on developments of Australian projects including the PEP11 Sydney Basin Gas project and other Australian Oil and Gas projects.

MEC Resources (ASX:MMR) has now provided the initial funding which has enabled investee

Asset Energy to establish a joint venture project for the offshore Sydney oil and gas permit named PEP 11.

At a cost of approximately $20M, an exploration well is being planned at a prospect named ‘Biggus’ that holds a potential 1.2 Tcf in natural gas. In 2004 Australian gas consumption was about 1.0 Tcf of gas at a wholesale price of approximately $3 billion.

With the initial funding of USD 498,000 from MEC, Asset Energy has acquired a seismic survey and related data on the permit from Norwegian company Fugro-Geoteam AS to earn an initial 25% interest in the PEP 11 permit from Bounty Oil and Gas NL.

MEC has also agreed to provide $1,000,000 of seed funding to Advent Energy under an agreement outlined in its prospectus The investment is subject to shareholder approvals.

Drilling of PEP11 is required to occur by the third quarter of 2007. Additional processing and interpretation of the seismic data will begin immediately to enable the location of the well to be finalized. The company is also discussing with potential Australian and international partners to participate in the drilling program.

The MEC board will continue to assist its investees in negotiations with leading international oil and gas companies for the provision of a rig, drilling services and partnership opportunities. Asset Energy or its partner has the capacity to become operator of the project through the drilling program.

Covered by the PEP 11 permit (200 km long, 8,400 km2) the Offshore Sydney Basin is a significant exploration area with large scale structuring and potentially multi-TCF gas and condensate-charged Triassic and Permian reservoirs. The permit has one large, well defined gas prospect and several additional leads.

Six other large leads, each with significant potential gas recoveries have also been identified elsewhere in the permit. Landsat analysis has also revealed streaming slicks clustered over the Biggus prospect that may provide evidence of an active petroleum system.

According to the NSW Department of Primary Industries, it has been demonstrated that some sedimentary basins in NSW have all the elements of the petroleum systems suitable for the generation of oil and gas. The disparity between levels of exploration in NSW and adjoining States is further highlighted by the fact that many of the geological formations and sedimentary basins that host economic gas and oil production in South Australia and Queensland simply extend into NSW.

For further information please contact

Mr David Breeze Executive Director PO Box 317, North Perth WA 6906 Telephone: 61 89328 8477 Facsimile: 61 89328 8733

www.mecresources.com.au