88 Energy Regulatory News (88E)

23 Apr 2012 07:00

23 April 2012 TANGIERS PETROLEUM LIMITED ANNUAL REPORT

Set out below is a summary of Tangiers Petroleum Ltd's ("Tangiers" or the "Company") full year annual accounts for the year ended 31 December 2011 as extracted from the Annual Report, being:

Statement of Comprehensive Income;

Statement of Financial Position;

Statement of Changes in Equity; and

Statement of Cash Flows.

A copy of the full Annual Report is available on the Company's website at www.tangierspetroleum.com and also from the Australian Securities Exchange website at www.asx.com.au .

CHAIRMANS STATEMENT

I am pleased to present the Company's Annual Report for 2011 and provide an overview of the achievements made by our Company in the last 12 months.

2011 has been a very significant year for Tangiers Petroleum Limited. The Company has delineated further, significant prospectivity across its portfolio of assets in Australia and Morocco.

Worldwide petroleum consultants, Netherland Sewell and Associates Inc. (NSAI) completed an independent evaluation of the prospective oil resources for the initial four Jurassic prospects (Trident, TMA, Assaka, and La Dam) in Tarfaya and validated the oil potential in these prospects with a combined best estimate unrisked prospective resource of 867 million barrels of oil (650.25 million barrels of oil attributable to Tangiers) and a high side case of 4,959 million barrels of oil (3,719.25 million barrels of oil attributable to Tangiers).

In addition, the Company has added to its exploration portfolio two top Jurassic prospects Zeus and Little Zeus, which are located inboard of its four lower Jurassic prospects, and an additional three prospects in the lower cretaceous Tan Tan interval along with multiple additional leads.

In late 2011, the Company commenced a 3D Seismic Acquisition program in its offshore Tarfaya Block. The Company successfully completed acquisition of a 670 square kilometre 3D seismic survey over primary prospects Trident, TMA, and Assaka in early January 2012. The data results are expected during mid-2012.

The Company is looking to complete a farm-out arrangement for its Morocco and Australian permits during 2012 to finance its multi-well exploration campaign in those regions.

Competent Person Statement

Mr Brent Villemarette who is an Executive Director of Tangiers Petroleum has sufficient experience that is relevant to the style and nature of oil prospects under consideration and to the activities discussed in this document. His academic qualifications and industry memberships appear on the Company's website and both comply with the criteria for "Competence" under clauses 18-21 of the Valmin Code 2005. Terminology and standards adopted by the Society of Petroleum Engineers "Petroleum Resources Management System" have been applied in this document.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2011

Note 2011 2010 $ $ Revenue 2(a) 94,304 96,370 Other expenses 2(b) (2,658,744) (1,828,152) Loss before income tax (2,564,440) (1,731,782) Income tax expense 3 - -

Net loss attributable to members of the (2,564,440) (1,731,782) parent

Other comprehensive income for the year - -

Total comprehensive income for the year (2,564,440) (1,731,782)

Basic and diluted loss per share 4 (3.01) (2.70)(cents)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2011 Note 2011 2010 $ $ ASSETS Current Assets Cash and cash equivalents 5 1,452,219 2,150,565 Other receivables 6 376,695 67,789 Total Current Assets 1,828,914 2,218,354 Non-Current Assets Plant and equipment 7 51,725 57,836 Other financial assets 8 982,656 983,961

Exploration and evaluation expenditure 9 3,192,571 528,299

Total Non-Current Assets 4,226,952 1,570,096 TOTAL ASSETS 6,055,866 3,788,450 LIABILITIES Current Liabilities Trade and other payables 10 1,112,956 214,519 Total Current Liabilities 1,112,956 214,519 TOTAL LIABILITIES 1,112,956 214,519 NET ASSETS 4,942,910 3,573,931 EQUITY Contributed equity 11(a) 37,561,795 35,637,180 Reserves 11(c) 3,087,172 1,078,368 Accumulated losses 11(d) (35,706,057) (33,141,617) TOTAL EQUITY 4,942,910 3,573,931

STATEMENTS OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2011

Issued Option Retained Total premium capital reserve earnings equity $ $ $ $ Balance at 1 January 2011 35,637,180 1,078,368 (33,141,617) 3,573,931 Total income and expense for the - - (2,564,440) (2,564,440)period recognised directly in equity Total comprehensive income for the year, net of tax Shares issued in the year 2,157,344 2,157,344 Options issued in the year - 819,286 - 819,286 Share based payments - 1,189,518 - 1,189,518 Equity raising costs (232,729) - - (232,729)

Balance at 31 December 2011 37,561,795 3,087,172 (35,706,057) 4,942,910

Balance at 1 January 2010 32,698,390 320,783 (31,409,835) 1,609,338 Total income and expense for the - - - -period recognised directly in equity Total comprehensive income for the - - (1,731,782) (1,731,782)year, net of tax Shares issued in the year 3,134,542 - - 3,134,542 Share based payments - 757,585 - 757,585 Equity raising costs (195,752) - - (195,752) Balance at 31 December 2010 35,637,180 1,078,368 (33,141,617) 3,573,931 STATEMENTS OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2011

Note 2011 2010 $ $ Cash flows from operating activities Interest received 94,304 111,419 Other income received - 4,545 Payments to suppliers (1,254,754) (817,224)

Payments for exploration and evaluation (2,253,407) (528,299) activities

Net cash flows used in operating 5 (3,413,857) (1,229,559)activities Cash flows from investing activities Payments for plant and equipment (28,390) (71,810) Payments for bank guarantee - (1,144,175) Net cash flows used in investing (28,390) (1,215,985)activities Cash flows from financing activities Proceeds from issue of shares 2,976,630 3,134,542 Share issue costs (232,729) (195,752) Net cash flows from financing activities 2,743,901 2,938,790 Net increase/(decrease) in cash and cash (698,346) 493,246equivalents Effects of exchange rate changes on cash - 1,299and cash equivalents Cash and cash equivalents at beginning 2,150,565 1,656,020of year

Cash and cash equivalents at end of year 5 1,452,219 2,150,565

The above consolidated statements should be read in conjunction with theaccompanying notesENDKRYSTEL KIROUJoint Company SecretaryTangiers Petroleum Limited14 Emerald TerraceWest Perth, WA, 6005Ph: +61 (8) 9322 2700Fax: +61 (8) 9322 7211www.tangierspetroleum.comContactsMr Mark CeglinskiChairman+61 8 9263 5205RFC Corporate Finance Limited (Nominated Adviser)Mr Stuart Laing+61 8 9480 2506Old Park Lane Capital PLC (Joint AIM Broker)Mr Michael ParnesMr Luca Tenuta+ 44 20 7493 8188Shore Capital Stockbrokers Ltd (Joint AIM Broker)Mr Jerry KeenMr Bidhi Bhoma+ 44 20 7408 4090Casimir Capital (Principal American Liaison)Mr Stephen Silver+1 212 798 1372

Mr Paul Youens / Mr Ed Portman (Media and Investor Relations - United Kingdom) Tavistock Communications +44 20 7920 3150

Mr Bill Kemmery Fortbridge Consulting +61 400 122 449