88 Energy Regulatory News (88E)

28 April 2014 TANGIERS PETROLEUM LIMITED Revised Well Budget and Investor Presentation Tangiers Petroleum Limited (ASX: TPT; AIM: TPET) (Tangiers or the Company)advises that a DWOP (Drilling Well on Paper) meeting was held in Morocco on 22April 2014, which was attended by Galp, ONHYM and Tangiers. At the meeting, theOperator, Galp, confirmed the indicative budget for the drilling of TAO-1exploration well, offshore Morocco, to be in the order of US$75m. The estimateprovided by the Operator, Galp, is a Class II estimate and therefore subject toa plus or minus 25% variance. The Operator estimates TAO-1 to spud mid to lateJune and Tangiers expects to be issued a final AFE approximately 4 weeks priorto this date. Tangiers is obligated to pay 33% of any costs associated with thedrilling over and above the US$33m cap carried by Galp. Tangiers notes that the indicative budget provided by Galp is subject to asignificant variance, both up and down, and to ongoing work being carried outby the Operator, Tangiers and ONHYM under the joint venture to improve theaccuracy of the budget estimate. There is a risk that Tangiers may face a wellfunding commitment which is not covered by Tangiers' current financialresources. Based on the current indicative budget and without taking intoaccount requirements for working capital, the Company's potential financialobligation related to drilling of the TAO-1 exploration well ranges from having~US$6m surplus cash (-25% case) to ~US$0.06m surplus cash (base case) to ashortfall of US$6m (+25% case). Were Tangiers unable to meet its financialobligation under the joint venture agreement for the TAO-1 exploration well,there is a risk that it would be in default of the terms of the JV agreement,in which case it could forfeit some or all of its interest in the TarfayaOffshore Block. Given the confirmed drilling budget, the proximity to the spud date of thewell, and the Company's current funding capacity of approximately A$15m, theBoard has agreed it is prudent to undertake a capital raising to ensure thatTangiers is well positioned to fulfil all of its obligations associated withfunding of the drilling program. The farm-out value implied for Tangier's 25%working interest was US$40.5m, roughly equivalent to the Company's currentmarket capitalisation, and the Board is confident of being able to raise thenecessary funds to protect shareholders from any loss of interest in the assetthat may arise from default. Tangiers has requested a voluntary suspension on ASX. The Company expects thatthe voluntary suspension will end when it releases an announcement to themarket in relation to the proposed material capital raising, which is currentlyexpected to be released before the commencement of trading on 9 May 2014. The Company's securities will continue to be suspended on AIM pending furtherclarification. Tangiers also wishes to advise that a copy of the Company's latest InvestorPresentation has been lodged on the ASX and is also available on the Company'swebsite at www.tangierspetroleum.com.au. END ROBERT DALTONJoint Company Secretary Tangiers Petroleum LimitedLevel 2, 5 Ord StreetWest Perth WA 6005, AustraliaPh: +61 8 9485 0990www.tangierspetroleum.com Contacts RFC Ambrian Limited (Nominated Adviser)Mr Oliver Morse / Ms Trinity McIntyre+61 8 9480 2500 Peel Hunt LLP (AIM Broker)Mr Richard CrichtonMr Andy Crossley+ 44 20 7418 8900 Mr Ed Portman (Media and Investor Relations - United Kingdom)Tavistock Communications+44 20 7920 3150