MEC RESOURCES LIMITED — Capital/Financing Update 2017

Mar 14, 2017

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14 March 2017

Dear Option Holder,

MEC Resources Limited ( Company ) has announced a non-renounceable rights issue of up to 100,017,316 new fully paid ordinary shares ( Rights Issue ) under which its shareholders whose registered addresses are in Australia and New Zealand ( Eligible Shareholders ) will be offered one (1) fully paid ordinary shares in the Company ( New Shares ) for every two (2) fully paid ordinary shares held at 5:00pm AWST ( Record date ) at an issue price of $0.028 per New Share, with any fractional entitlements being rounded up.

The New Shares will rank equally with all other fully paid ordinary shares of the Company, including in respect of dividends, from the date of the allotment. The Rights Issue is not underwritten.

The Rights Issue will raise up to $2,800,484.85 before costs.

The funds raised from the Rights Issue will be used primarily to provide funding to Advent Energy Limited ( Advent Energy ), one of the Company’s investee companies) for the acquisition of 2D seismic data within PEP 11 and the proposed well intervention program in EP386 and RL1, and for working capital requirements of the Company.

Advent Energy has engaged Minev Services to support achieving (in the first instance) the 2D seismic work commitment in PEP11. We are also very enthusiastic in supporting an expedited 3D seismic survey to ensure the key targets in PEP11 are sufficiently de-risked to be ‘drill-ready’ at the earliest opportunity.

As previously advised to the ASX on 27 February 2017, extension of the EP386 permit has been received. Advent Energy has since engaged a consultant, Geoteknic, to start working on a plan to prove up this asset. Geoteknic is an Australian reservoir engineering and technical analysis company, specializing in well test design and field well testing services. Data from these proposed well interventions may provide new support for the commercial potential of the discovered hydrocarbon accumulations, and support field development planning upon positive results.

Under the terms and conditions of the options that you currently hold, there is no entitlement to participate in the Rights Issue.

In order to participate in the Rights Issue in relation to any option that you hold, you must exercise those options that have vested in accordance with the terms of your options, prior to the Record Date. Please note that it is not compulsory to exercise your options. If you do wish to exercise your options, you may do so by completing all of the steps required by the terms and conditions of those options, including payment of the relevant exercise price.

To the extent that the options held by you have not vested and are not exercisable prior to the Record Date, the Rights Issue does not apply to those options.

Please consult your professional adviser if you are in any doubt as to the action you should take in respect of the Rights Issue.

If you have any questions, please contact the Company Secretary Ms Deborah Ambrosini on +618 61606101.

Yours faithfully

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Goh Hock Chairman

MEC Resources Ltd

ACN 113 900 020 PO Box 882, West Perth, WA 6872 Level 1, 100 Havelock Street, West Perth 6005, Western Australia T: +61 8 9245 6187 F: +61 8 6160 5901 info@mecresources.com.au www.mecresources.com.au