MEC RESOURCES LIMITED — Regulatory Filings 2021

Feb 7, 2021

==> picture [114 x 48] intentionally omitted <==

ASX ANNOUNCEMENT

7 February 2021

PEP 11 Drilling – Clarification

MEC Resources Limited ( MEC or the Company ) ( ASX: MMR ) refers to announcement made 5 February 2021 entitled “PEP 11 Drilling – Update” in relation to its investee company Advent Energy Ltd (“ Advent ”).[1]

Investee company Advent has provided the following additional clarification in relation to the announcement of 5 February 2021;

• Advent has, on behalf of the PEP11 joint venture submitted to the National Offshore Petroleum Titles Administrator (NOPTA) a further application to extend the current PEP11 permit in offshore NSW.

• The application comprises a 24-month suspension of the Permit Year 4 work program commitments, with a corresponding 24-month extension of the current permit term. This application was accepted for processing by NOPTA on the 4 February 2021.

• This application was lodged to ensure the company is not in breach of the Year 4 PEP11 work program and expenditure commitments. The Government has recognised that the COVID-19 pandemic has had a significant impact on the offshore petroleum sector and that additional flexibility would be required to assist titleholders to manage the COVID -19 crisis. The Joint Authority also confirmed in a release that it regarded the COVID-19 pandemic as a force majeure event.

• MEC has been informed by Advent that it does not foresee this recent application interfering with the NOPTA application to extend the permit terms for PEP11.

• Advent has further advised MEC that the NOPTA application extension to the permit terms for PEP11 is in the final phase of decision process and is now with the Joint Authority for decision.

Although the application submitted to NOPTA by Advent was to extend the current permit commitment conditions, the Joint Venture is committed to proceed with the drilling of the Baleen well in PEP11 as soon as the necessary preconditions and permitting including environmental approval has been satisfied.

1 ASX Release 5 Feb 2021 – PEP11 Drilling - Update

MEC Resources Ltd

ACN 113 900 020 Level 1, 9 Bowman Street, South Perth WA 6151 T: +61 8 9217 2400 info@mecresources.com.au www.mecresources.com.au

MEC has an interest of 48.2% in Advent and BPH has an interest of 22.7 % in Advent. Advent holds an 85% interest in the PEP11 permit.

Bounty Oil and Gas NL (ASX: BUY) holds a 15% direct interest in PEP11 and the joint venture.

This announcement has been authorised for release by director David Breeze.

David Breeze Managing Director

About investee Advent Energy Ltd

Advent Energy Ltd is an unlisted oil and gas exploration company held by major shareholders, MEC Resources Limited (ASX: MMR), BPH Energy Limited (ASX: BPH) and Grandbridge Limited. 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 asset base also incorporates both conventional and unconventional petroleum targets.