EDR.L Regulatory News (EDR)

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25 November 2016

EGDON RESOURCES PLC

("Egdon" or the "Company")

Result of Open Offer

Egdon announces the result of the Open Offer for up to approximately £2.06 million at 13.5 pence per share, further details of which were set out in the Open Offer Circular (the "Circular") despatched to Shareholders on 8 November 2016.

The Open Offer has been 1.3 times oversubscribed and valid acceptances have been received in respect of the entirety of the Open Offer Shares.

Qualifying Shareholders who have validly applied for Open Offer Shares will receive their full Open Offer Entitlement.

Applications under the Excess Entitlements Facility will be scaled back in accordance with the terms of the Open Offer.

Application will be made for these 15,234,093 Open Offer Shares, which will rank pari passu in all respects with the Existing Ordinary Shares, to be admitted to trading on the AIM Market of the London Stock Exchange. It is expected that Admission of the Open Offer Shares will occur, and dealings will commence at 8.00 a.m. on 29 November 2016.

The Company has, to date, raised total gross proceeds from the Subscription and Open Offer of approximately £5.06 million via the issuance of 37,456,315 Subscription Shares and Open Offer Shares.

The participation in the Open Offer by Petrichor Holdings Coöperatief, U.A.(1), a substantial shareholder in the Company, constitutes a related party transaction for the purposes of the AIM Rules. The directors of Egdon, having consulted with the Company's nominated adviser, Cantor Fitzgerald Europe, consider that the terms of the related party transaction are fair and reasonable insofar as the Company's shareholders are concerned.

Following Admission, the Company's enlarged issued share capital will comprise 258,879,583 Ordinary Shares, with voting rights. The Company does not hold any Ordinary Shares in treasury. Therefore the total number of Ordinary Shares in the Company with voting rights will be 258,879,583. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Mark Abbott, Managing Director of Egdon, commented:

"We are delighted to have received such a positive response from our existing shareholders to the Open Offer which was oversubscribed. Having raised gross proceeds of £5.06 million from the Subscription and Open Offer, Egdon is now well capitalized to deliver on our strategy. Our near term focus will include gaining the final consent for the development of the Wressle oil field, progressing the Company's 14th Round licence evaluations and moving the "A" Prospect to drillable status."

All defined terms in this announcement have the meanings given to them in the Circular.

Notes:

(1) Shares previously held by HEYCO International, Inc. have been transferred to an associate company, Petrichor Holdings Coöperatief, U.A.. Following the Open Offer Petrichor Holdings Coöperatief, U.A will hold, in total, 42,112,229 shares (16.27%) in the Company. HEYCO Energy Group, Inc. is the ultimate parent company of both companies.

Contact Information:

About Egdon:

Egdon Resources plc (LSE: EDR) is an established UK-based exploration and production company primarily focused on onshore exploration and production in the hydrocarbon-producing basins of the UK.

Egdon holds interests in 43 licences in the UK and France and has an active programme of exploration, appraisal and development within its balanced portfolio of oil and gas assets. Egdon is an approved operator in both the UK and France.

Egdon was formed in 1997 and listed on AIM in December 2004.