MEC RESOURCES LIMITED — Capital/Financing Update 2017

Oct 31, 2017

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1 November 2017

Australian Securities Exchange 10TH Floor, 20 Bridge Street SYDNEY NSW 2000

via e-lodgement

Dear Sir/Madam

ADVENT ENERGY LIMITED AGREES LOAN FACILITY TERMS

MEC Resources Ltd (ASX: MMR) (the “ Company ”) is pleased to announce that its investee Advent Energy Ltd (“ Advent ”) has agreed binding terms with Wonderhealth Pty Ltd (an entity associated with the Company’s chairman Mr Goh Hock) and Heydon Properties Limited (an entity associated with Mr K O Yap, a Non-executive Director of the Company) (together the “ Lenders ”) for the provision by the Lenders of loan facilities to Advent. The Company has agreed to act as Advent’s guarantor for these loan facilities.

The facilities are for a maximum amount of $125,000 from each Lender. The facilities are available for drawdown from today until the earlier of (a) Mr Hock or (as the case may be) Mr Yap ceasing to be a director of Advent or the Company, and (b) six months from today’s date. Amounts advanced under the facilities are repayable six months from the date of initial drawdown of funds (which period may be extended to 12 months at the discretion of the Lender). Interest is payable at commercial interest rates.

If a liability arises under the guarantee of these facilities, that liability may be satisfied in cash and/or (subject to receipt of any required shareholder approvals) by way of an issue of fully paid ordinary shares.

Funds drawn under the facilities are to be used to assist in funding costs for the execution of 2D seismic exploration works in Petroleum Exploration Permit 11 ( PEP 11 ), in which Advent holds an 85% interest and is the operator. The 2D seismic works in PEP 11 are expected to be performed in early 2018

Yours faithfully

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Ms Deborah Ambrosini Company Secretary, Chief Financial Officer and Director

MEC Resources Ltd

ACN 113 900 020 PO Box 882 West Perth WA 6872 | Suite 2, Level 3, 1111 Hay Street, West Perth WA 6006 T: +61 8 9245 6187 F: +61 8 9200 6193 info@mecresources.com.au www.mecresources.com.au