88 Energy Regulatory News (88E)

19 November 2013 TANGIERS PETROLEUM LIMITED Letter to Shareholders Dear Shareholder On 8 October 2013, Tangiers Petroleum Limited (the Company) issued anannouncement advising the shareholders that it had terminated the Farm-OutAgreement with CWH Resources Limited in relation to the offshore permitsWA-442-P and NT/P81 located in the Joseph Bonaparte Gulf, northern Australia(Permits). This letter is to provide background on the farm-out process and provide ahistory of the Permits and their current status. Farm-out Process The Company commenced a search for a farm-in partner in April 2012 andcommissioned a well-regarded and experienced petroleum consultancy to managethe process. 176 companies (both Australian and international) were identified,contacted and followed up in the process. Although a number of companiesinitially showed some interest and proposed minor contributions, many weredeterred by the magnitude of the work commitment of over $60 million in today'scosts, and the fact that the work completed to date had not yet confirmeddrilling opportunities. CWH Resources was the only company prepared to make asignificant contribution of $35 million to the outstanding mandatory workcommitment. History of the Permits The Titleholders (the Company - 90%, and Ansbachall Pty Ltd -10%) applied forthe Permits in December 2009 and they were granted in early 2010 for a periodof six years. The first three years of the work program commitment (to April/May 2013) is mandatory and comprises of: Year One (ending April/May 2011) - Reprocessing of previously acquired seismicdata. Year Two (ending April/May 2012) - 3D seismic surveys in both permits. Year Three (ending April/May 2013) - Two exploration wells (one in eachPermit). The work completed to date has been the reprocessing of previously acquiredseismic data and technical evaluation. The Year Two and Year Three commitments are relatively significant, especiallyfor a junior company to take on at 90% equity. The failure to complete the YearTwo program by April/May 2012 placed the permits in jeopardy and there hadalready been applications to government for extensions of time prior to theBoard changes in September 2012. Current Status The current Board and staff of the Company have made every effort to deal withthe legacy of this significant work program commitment, but understandably thegovernment is running out of patience and clearly the Company itself cannotfund the program at 90%. Together with its joint venture partner, Ansbachall Pty Ltd, the Company hasapplied to the government for a further extension of time for both permits toallow us to try again to identify a company or companies willing to fund the 3Dseismic survey, which is expected to cost about $10 million. We are currentlyawaiting a response from the government as to whether they are prepared togrant any further extension. We hope that this answers some of the questions and concerns that have beenraised by the shareholders regarding the Australian permits. EVE HOWELLExecutive Chairman Tangiers Petroleum LimitedLevel 2, 5 Ord StreetWest Perth WA 6005, AustraliaPh: + 61 8 9485 0990www.tangierspetroleum.com Contacts RFC Ambrian Limited (Nominated Adviser)Mr Stuart Laing+61 8 9480 2506 Peel Hunt LLP (Joint AIM Broker)Mr Richard CrichtonMr Andy Crossley+ 44 20 7418 8900 Shore Capital Stockbrokers Ltd (Joint AIM Broker)Mr Jerry KeenMr Bidhi Bhoma+ 44 20 7408 4090 Mr Ed Portman (Media and Investor Relations - United Kingdom)Tavistock Communications+44 20 7920 3150