METGASCO LTD — AGM Information 2013

Oct 17, 2013

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ASX / MEDIA RELEASE

ASX Code: MEL

18 October 2013

Letter to Shareholders regarding LTI Award

Metgasco (ASX:MEL) today advises the following:

Dear Shareholder,

As you are aware, you are being asked to vote on the award of about four million shares to me at the 29[th] October Annual General Meeting (Resolution 5).

I know that this is a sensitive subject for many of Metgasco’s shareholders.

The share recommendation was made by our Remuneration Committee, of which I am not a member. The shares are part of a Long Term Incentive (LTI) Scheme, which has been approved by Shareholders and aims to encourage key employees to remain with Metgasco and to do their best to sustainably increase the share price. To have the shares awarded I must remain with Metgasco for three years (2016) and the share price must exceed specified levels during the period (details are in the Notice of Meeting). The value of this type of incentive is comparable to opportunities that I know are available to me in other companies.

I greatly appreciate the vote of confidence that my fellow directors have made in me by recommending the shares for your approval.

At the time this award was developed, the Company’s share price had been very low for several months and the Company’s outlook was very challenging, making the recommendation seem reasonable at the time. Despite this, I recognise the sensitivity associated with the award of any shares at a time when the Company’s (and general gas industry’s) performance has been disappointing, even if the shares are severely restricted as in the case of these shares. A number of people/shareholders whose opinion and advice I respect have reinforced this sensitivity with me.

It is really important to me that my share award resolution does not cloud decisions on the more important resolutions that you should be supporting. I believe it is very important that the Chairman, Nick Heath, and newly appointed director, Greg Short, are elected and that the three newly proposed directors are not. In my opinion, a result other than this is not in Metgasco’s interests.

As such, I now consider it to be in the best interests of the Company to decline the LTI award. Therefore, I have asked my fellow directors to withdraw the Resolution 5 at the 29 October AGM and they have agreed.

Yours faithfully,

Peter J Henderson

For further information contact: Peter J Henderson Sean Hooper Managing Director & CEO Chief Financial Officer

Metgasco Limited ACN 088 196 383 Level 11, 2 Elizabeth Plaza, North Sydney NSW 2060 Tel:+61 2 9923 9100 Fax: +61 2 9923 9199 Web: www.metgasco.com.au