MEC RESOURCES LIMITED — Capital/Financing Update 2010

Jul 4, 2010

PO Box 317, North Perth, WA 6906 14 View Street, North Perth, WA, 6006 T: + 618 9328 8477 F: + 618 9328 8733 info@mecresources.com.au www.mecresources.com.au

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ACN 113 900 020

5 July 2010

Companies Announcements Office Australian Securities Exchange Limited 10[th] Floor, 20 Bond Street SYDNEY NSW 2000

Dear Sir/Madam

Please see attached announcement from MEC investee company Advent Energy Limited.

Yours sincerely

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David Breeze Executive Director MEC Resources Ltd PO Box 317 North Perth WA 6906 Tel: +61 8 9328 8477

Media Enquiries: Bill Kemmery Fortbridge Consulting Tel: +61 2 9331 0655 Mobile: +61 400 122 449

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 relevant ASX releases for details and attribution. Unless otherwise stated all resource and reserve reporting complies with the relevant standards. Resources quoted in this report equal 100% of the resource and do not represent MEC’s investees’ equity share.

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14 View Street North Perth Western Australia 6006 PO Box 317 North Perth Western Australia 6906 Telephone + 61 (08) 9328 8711 Facsimile + 61 (08) 9328 8733 ACN: 109 955 400

PUBLIC RELEASE

5 July 2010

Increase in Estimated Prospective Gas Resources for PEP11 Offshore Sydney Basin

Advent Energy Ltd (“Advent”) is pleased to advise that is has received technical reviews from Tanvinh Resources Pty Ltd and Pangean Resources LLC supporting a significant increase in the estimated prospective recoverable resources within the PEP 11 Offshore Sydney Basin.

Following these reviews, Advent have provided an increase in the ‘best estimate’ (P50 level) to 13.2 trillion cubic feet (Tcf) of prospective gas resources. Prospects and leads within the Permo-Triassic sedimentary sequence were estimated to contain 6.0 Tcf (P50) whilst estimates for the Cainozoic sedimentary sequence are 7.2 Tcf (P50).

Mr Lan Nguyen of Tanvinh Resources is a professional petroleum geologist & engineer with over 20 years experience in petroleum exploration, development and production. He is the former Managing Director of ASX listed Mosaic Oil Limited and has been credited with the discovery and development of many oil and gas fields in the Surat-Bowen Basins through his innovative introduction of various exploration, drilling and completion technologies to Queensland and Australia..

Mr Tim Berge of Pangean Resources is an internationally recognized Geophysicist with over 30 years of experience. He is an industry expert in AVO (Amplitude Versus Offset), inversion, workstation interpretation, sequence and structural geology, reserves certification and risk assessment. In 2000, Tim Berge was principally involved in the discovery of the Ibhubesi field on the west coast of South Africa, which has been described as comprising a 25 Tcf unrisked resource potential.

In addition to the above, Total Depth Pty Ltd, the company’s Geophysical consultant, has identified AVO anomalies surrounding the major prospects and also identified new areas of interest arising from independent analysis of 1460 kilometres of recently reprocessed 2D seismic data (by Fugro Seismic Imaging). While AVO methodology is a recognised methodology employed by major oil companies to identify exploration potential, the absence of any offshore well control to calibrate this analysis limited the use of this technology to the definition of areas of interest. The extent of the AVO observations are set out in the attachment with this announcement.

The AVO observations broadly correlate with locations of existing structures and leads such as the greater Fish prospect. Moreover, they provide corroboration with other data types collected during our assessment of the acreage.

Mr Jim Dirstein of Total Depth Pty Ltd has specialist expertise in the processing and analysis of seismic data for the exploration, appraisal and development of conventional and unconventional reservoirs. He has more than 30 years of international experience providing advice to Petroleum, CSG and Mining clientele.

Advent has secured the semi submersible drilling rig, Ocean Patriot to drill an exploration well in PEP11 later in 2010.

Yours sincerely,

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Executive Director Advent Energy Ltd

About Advent Energy

Advent Energy Ltd is an unlisted oil and gas exploration company, held by major shareholders MEC Resources (ASX: MMR), BPH Corporate (ASX: BPH) and Talbot Group Holdings. Advent holds a strong portfolio of exploration and nearterm production assets throughout Australia. Advent’s cornerstone project lies off the coast of NSW in Petroleum Exploration Permit 11 (PEP11), and comprises an estimated 13.2 Tcf (P50 or ‘best estimate’) prospective gas resources. Advent Energy’s wholly owned subsidiary Asset Energy Pty Ltd will increase its interest from 25% to 85% of PEP11 by drilling the first well. Bounty Oil and Gas (ASX:BUY) will thereby reduce their interest from 75% to 15%.

Notes:

The geological information supplied in this report has been based on information provided by geologists who have had in excess of five years experience in their field of activity.

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Prospects in Advent Portfolio

	Block Asset Advent interest	Probablility of Success P90 P50 P10 Swansons Mean P90 P50 P10 Swansons Mean % Prospective Recoverable Gas Reserves Bcfg Prospective Recoverable Condensate Reserves MMbo
	PEP 11 Abalone 85%	483.5 1,810.1 7,554.9 3,135.6 4.8 45.3 302.2 110.2 19.0%
	Shallow Abalone Deep 85%	948.9 2,933.0 11,798.3 4,997.4 9.5 73.3 471.9 173.7 19.0%
	Cainozoic Great White 85%	164.0 695.5 1,910.7 900.6 1.6 17.4 76.4 30.4 19.0%
	Marlin 85%	371.0 1,780.7 5,770.9 2,554.9 3.7 44.5 230.8 88.2 19.0%
	Shallow Total	1,967.4 7,219.3 27,034.8 11,588.4 19.6 180.5 1,081.3 402.5
	PEP 11 Fish 85%	28.6 2,131.2 35,491.8 11,508.6 0.0 0.1 1.8 0.6 21.0%
	Deep Baleen 85%	17.2 472.2 4,193.3 1,452.0 0.0 0.0 0.2 0.1 18.9%
	Permian / Shark 85%	44.1 752.2 10,656.0 3,510.9 0.0 0.0 0.5 0.2 16.8%
	Triassic Trout 85%	12.1 232.6 1,757.3 623.9 0.0 0.0 0.1 0.0 17.9%
	Orca 85%	15.7 302.3 2,283.7 810.7 0.0 0.0 0.1 0.0 20.2%
	Squid 85%	11.4 218.1 1,647.7 585.0 0.0 0.0 0.1 0.0 13.6%
	Blue 85%	15.5 297.9 2,250.6 799.0 0.0 0.0 0.1 0.0 7.5%
	Blue Whale 85%	66.2 1,271.6 9,607.6 3,410.8 0.0 0.1 0.5 0.2 7.5%
	South Squid 85%	66.2 289.7 2,189.1 777.2 0.0 0.0 0.1 0.0 13.5%
	Deep Total	277.0 5,967.8 70,077.1 23,478.1 0.0 0.3 3.5 1.2
	PEP 11 Total 85%	2,244.4 13,187.1 97,111.9 35,066.5 19.6 180.8 1,084.8 403.6
	EP 325 Rivoli 8 3% .	5 4 14 4 9 5 0 0 0 0 0 1 . - . . . . . -
	Rivoli Deep 8.3%	1.2 - 3.6 2.3 - - - -
	EP 386/RL-1 Weaber 100%	- - 52.8 - - - - -
	Others Total	6.7 - 70.8 11.8 0.0 0.0 0.1 -

Resources quoted equal 100% of the estimated resource and do not represent Advent’s equity share unless otherwise stated

PEP11 estimated prospective gas resources have been independently derived from interpretation of seismic and other indirect geophysical data.

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Significant AVO Leads Surrounding Major Prospects

• AVO is a recognised methodology employed by major oil companies to identify exploration potential

• Independent analysis of extracted AVO attributes has been com p leted

• 32 seismic lines from the survey conducted upon Advent's farm‐in during 2004 were analysed

• Seismic gathers provided by Fugro have been p rocessed for AVO anal y sis

• AVO analysis shows the AVO volumes have a number of good events that show correlations with theoretical AVO curves

• AVO observations broadly correlate with locations o f ex s i ti ng s t ruc t ures an d l ea d s suc h as th e grea t er Fish prospect

• A number of new areas of interest have been

• identified through the AVO analysis

• Absence of any offshore well control to calibrate this analysis limited the use of this technology to the definition of areas of interest

Permo-Triassic Trap Summary Map

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Side view of South Fish and Baleen Prospects Horizon

Side view of Great White and Marlin Prospects Horizon

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Shallow Horizon Prospects

• Vast, gently eastward dipping prospects with main reservoir targets interpreted as Tertiary sandstone

• signi icant potential or good f f reservoir development

• Excellent migration pathways

• Re g ional unconformit y seal

• Relatively shallow water depth of ~140 meters

• The Marlin Prospect is a large stratigraphic feature which conceptually is considered to be analogous with producing fields located in the prolific offshore Campos Basin of Brazil

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Prospect Locations
Well Location to
Explore Great White
& Marlin Prospects
Well Location to Explore
Abalone & Abalone Deep
Prospects
Abalone
Great White
Marlin
Abalone Deep
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Well Location to
Explore Great White
& Marlin Prospects
Well Location to Explore
Abalone & Abalone Deep
Prospects
Abalone
Great White
Marlin
Abalone Deep
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Advent Energy Key Prospects

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Great White
& Marlin
Baleen
Abalone &
Abalone Deep
Abalone
South Fish
Great White
Marlin
Abalone Deep
Permo‐Triassic Prospects
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