MEC RESOURCES LIMITED — Capital/Financing Update 2013

Nov 14, 2013

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15 November 2013

ASX Market Announcements Office ASX Limited 20 Bridge Street SYDNEY NSW 2000

INDEPENDENT CONFIRMATION OF BONAPARTE BASIN SHALE GAS POTENTIAL

MEC Resources Limited (ASX:MMR) is pleased to provide the following announcement regarding investee Advent Energy Ltd’s (“ Advent ”) assets in the onshore Bonaparte Basin. Advent holds 100% of EP386 & RL1 in the onshore Bonaparte Basin through wholly owned subsidiary Onshore Energy Pty Ltd.

A recently published independent report has assessed the shale gas potential in Australia’s sedimentary basins, and has described a 6 trillion cubic feet (Tcf) resource for the onshore Bonaparte Basin, equal to a 1.09 billion barrels of oil equivalent (BOE) resource. Key extracts of the report are provided overleaf (please refer to Diagrams 1 and 2).

Advent is pleased to report the independent confirmation of the area’s potential for unconventional gas.

Advent has previously advised of a 9.8 Tcf (best estimate) prospective resource estimate for the shale gas potential present in its 100% owned EP386 and RL1. (Please refer to Diagram 3 below).

The report, titled Engineering energy: unconventional gas production , as a study of shale gas in Australia was undertaken by the Australian Council of Learned Academies (ACOLA). The ACOLA resource assessment made in the onshore Bonaparte Basin was assessed from the Milligans Formation gas zone.

In calculating the recoverable gas resource of 6 Tcf (over 1 billion BOE), the ACOLA report uses a figure of only 120 feet (36 metres) as a shale thickness.

Advent has previously analysed the well logs of 16 conventional wells drilled in its areas in the Bonaparte Basin.

The thickness of the shales in these wells within the Milligans Formation varies from 300 metres to 1700 metres (984 feet to 5574 feet), and is materially thicker than the ACOLA figure.

The ACOLA report also used a total organic carbon (TOC) of 1.8% in deriving its assessment of shale source. Advent has reprocessed its well logs and observed TOC of up to 5% in a number of wells. Gas flow results from the conventional gas wells in Advent’s acreage have been up to 4.5 million standard cubic feet per day (MMscf/d).

The hydrocarbon source pod for the Milligans Formation in the onshore Bonaparte Basin has also been independently mapped by Geoscience Australia and published in a 2013 exploration acreage release. The map of the petroleum systems of the Bonaparte Basin is provided overleaf in Diagram 4.

Advent Managing Director David Breeze said: “We are pleased that this portion of one of Australia’s premier petroleum producing basins is finally getting the recognition it deserves for its rich petroleum potential.”

Mr Breeze said that the report’s assessment of the onshore Bonaparte Basin’s shale gas potential has not had the benefit of using information now available from the reprocessed petrophysical logs from the numerous wells in the area and the reprocessed seismic data. This additional information provides further confidence in their findings as well as impacts positively on the potential estimates of unconventional gas resources in the area.

Advent’s major shareholders are MEC Resources (ASX: MMR), BPH Energy (ASX: BPH), Talbot Group and Grandbridge (ASX: GBA).

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

About MEC Resources

ASX listed MEC Resources (ASX: MMR) invests into exploration companies targeting potentially large energy and mineral resources. The Company has been registered by the Australian Federal Government as a Pooled Development Fund enabling most MEC shareholders to receive tax free capital gains on their shares and tax free dividends.

About Advent Energy

Advent Energy Ltd is an unlisted oil and gas exploration company held by major shareholders MEC Resources (ASX: MMR), BPH Energy (ASX: BPH), Grandbridge (ASX: GBA) and Talbot Group Investments. Advent holds a strong portfolio of near term development and exploration assets spanning highly prospective acreage onshore and offshore Australia in proven petroleum basins. Advent Energy’s asset base also incorporates both conventional and unconventional petroleum targets.

Notes: In accordance with ASX listing requirements, 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. 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. Unless otherwise stated all resource and reserve reporting complies with the relevant standards. Resources quoted in this report equal 100% of the resource and may not represent MEC’s investees’ equity share.

Diagram 1: Engineering energy: unconventional gas production, as a study of shale gas in Australia, Australian Council of Learned Academies (ACOLA) – Key Extracts.

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From: Cook, P, Beck, V, Brereton, D, Clark, R, Fisher, B, Kentish, S, Toomey, J and Williams, J (2013). Engineering energy: unconventional gas production . Report for the Australian Council of Learned Academies.

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

Diagram 2: Engineering energy: unconventional gas production, as a study of shale gas in Australia, Australian Council of Learned Academies (ACOLA) – Key Extracts.

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From: Cook, P, Beck, V, Brereton, D, Clark, R, Fisher, B, Kentish, S, Toomey, J and Williams, J (2013). Engineering energy: unconventional gas production . Report for the Australian Council of Learned Academies.

Diagram 3: Map of Advent Energy’s holdings - EP386 and RL1

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MEC Resources Ltd

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----- Start of picture text ----- ACN 113 900 020----- End of picture text -----

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

Diagram 4: Map of Petroleum Systems in the Bonaparte Basin .

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Petroleum source pod of the Bonaparte Basin, including the onshore Bonaparte Basin. From: Regional Geology of the Bonaparte Basin; Australia 2013 Offshore Petroleum Exploration Acreage Release , Australian Government Department of Resources, Energy and Tourism and Geoscience Australia, 2013.

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