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MEC RESOURCES LIMITED Capital/Financing Update 2008

Jun 26, 2008

65353_rns_2008-06-26_393a17e0-74fb-4754-a592-b653df9c790d.pdf

Capital/Financing Update

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27 June 2008

Dear Shareholder

NON RENOUNCEABLE RIGHTS ISSUE

The Company is happy to announce a non renounceable rights issue of approximately 71,072,838 Shares at an issue price of $0.05 per Share to raise up to $3,553,642 on the basis of one (1) Share for every one (1) Share held plus three (3) attaching free Options for every two (2) Shares issued.

The prospectus relating to this issue will be lodged with the ASX and will be available on the ASX website at www.asx.com.au for inspection.

The timetable and important dates of the issue are set below:

EVENT DATE
Lodgement of Prospectus with the ASIC 30 June 2008
Notice to Shareholders 2 July 2008
Ex Date 4 July2008
Record Date for determining Shareholder entitlement 10 July 2008
Opening Date and despatch of Prospectus to Shareholders 16 July 2008
Closing Date of Offers 5:00pm 30 July 2008
Shares quoted on a deferred settlement basis 31 July 2008
Allotment and dispatch of holding statements 7 August2008

The purpose of the issue is maximise MEC’s involvement in the petroleum resources sector considering current global demands and record energy prices.

The funds raised will be used to invest further in investee company Advent Energy Ltd, allowing a drilling rig to be secured for Petroleum Exploration Permit 11 in the offshore Sydney Basin, and further development of Advent’s strong portfolio of exploration assets throughout Australia.

The capital structure of the Company on completion of this issue will be as set out below:

Listed

142,145,676 ordinary fully paid Shares 106,609,257 Options

Unlisted

nil ordinary fully paid Shares 12,150,000 Options

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The Options are exercisable at 20 cents each on or before 4th July 2013. The Options do not rank equally with other securities quoted. However, all Shares issued on exercise of the Options will rank equally with the then issued fully paid ordinary Shares. The Options do not entitle a holder to participate in any dividends.

Yours faithfully

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Deborah Ambrosini Company Secretary

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MEC Resources Ltd ACN 113900020 PO Box 317 North Perth WA 6906 14 View Street, North Perth Western Australia 6006 T: +61 8 9328 8477 F: +61 8 9328 8733