STA.L Regulatory News (STA)

3 June 2014 ASX Code: RRS and AIM Code: RRL Range Resources Limited ("Range" or "the Company") Company Update Range is pleased to provide a Company update with the following highlights: * As a result of the recent debt repayment, the total outstanding debt of the Company is forecast to reduce from $US10.5 million (as reported on 30 April 2014) to approximately GBP 75,000 by the end of June 2014. * The Company's equity interest in Citation Resources Limited (ASX: CTR) has reduced to 6.67%. Following this change, Range will have a direct and indirect interest of approximately 24% in the Guatemalan Project (previously 32%). Debt Repayment Following completion of US$12 million financing (see Announcement on 29 May2014), Range utilised the funds to repay the Company's debt and is pleased toprovide details on its debt repayment progress. The Company has agreed to pay a total of approximately US$7.4 million to repayoutstanding debt with Platinum Partners, Yorkville and a syndicate ofAustralian investors, out of which US$6.7 million has already been paid with aremaining final payment of approximately US$0.7 million to be paid to theAustralian syndicate prior to 30 June 2014. The remaining lenders, Hudson Bay and a US based institutional investor, whichhad outstanding loans of AU$250,000 and GBP 210,000 respectively, continue tobe repaid through the conversion into equity rather than cash, as permittedunder their respective loan agreements. As a result, the AU$250,000 loan withthe US based institutional investor has been fully repaid and converted into27,777,777 shares. The outstanding GBP 210,000 loan with Hudson Bay Master Fundwas partially converted (through the issuance of 23,333,334 shares and11,666,667 unlisted options - please refer to Issue of Shares at the end ofthis announcement). The current outstanding loan balance with Hudson Bay MasterFund is GBP 75,000 and this loan expires on 13 September 2015. The total remaining outstanding Company debt has therefore reduced from $US10.5million (as reported on 30 April 2014) to approximately GBP 75,000 after finalpayment of approximately US$0.7 million to be paid to the Australian syndicateprior to 30 June 2014. As part of the original debt agreement, Platinum Partners held 100 millionRange shares along with 100 million shares Range held in Citation ResourcesLimited (ASX: CTR), as collateral for the loan. Range has agreed with PlatinumPartners that the lender is not required to return to the Company these shares,as part of the loan settlement. This arrangement has, therefore, allowed theCompany to fully repay the loan for a reduced cash payment and provides theCompany with additional liquidity to fund its Trinidad commitments and foron-going general working capital. Interest in Citation Resources Limited As a result of the transactions detailed above, the Company's equity interestin Citation Resources Limited (ASX: CTR) which holds interest in the GuatemalanProject has reduced to 6.67%. A Form 604 - Notice of Change of Interest ofSubstantial Holder advising of the change in shareholding has been lodged withthe Australian Securities Exchange today. Range retains its 20% interest in Latin American Resources, which holds an 80–100% interest in the Guatemalan Project. Following this change in Citation Resources Limited shareholding, Range willhave a direct and indirect interest of approximately 24% in the GuatemalanProject (previously 32%). Commenting on today's announcement, Rory Scott Russell, CEO, said: "We are pleased to have reached agreements with our various lenders to repaythe expensive corporate debt which has diluted the Company's equity over recentmonths. The Company has been able to achieve these repayments as a result ofthe US$12 million equity financing which completed last week. The agreementsreached allow the company to maximise its cash position to fund developmentwork on its core Trinidad assets as well as retain cash for other corporatepurposes. Substantially removing this expensive and dilutionary debt is animportant step as we continue to focus on our operational and long termfinancing objectives." Issue of Shares Range announces the issue of 507,299,891 Ordinary Fully Paid Shares as follows: * 356,188,780 Ordinary Fully Paid Shares were issued to Abraham at £0.01 in Tranche 1 as per US $12 million financing agreement. * 100,000,000 Ordinary Fully Paid Shares issued to Platinum Partners at AU$0.031 as per settling of debt agreement dated 15 October 2013. * 27,777,777 Ordinary Fully Paid Shares issued at AU$0.009 per share for debt conversion as per agreement with a US based institutional investor. * 23,333,334 Ordinary Fully Paid Shares issued at AU$0.01 per share for debt conversion as per agreement with Hudson Bay Master Fund. * 11,666,667 Unlisted Options issued (£0.006, 31 May 2017) for debt conversion as per agreement with Hudson Bay Master Fund. Application will be made for the 507,299,891 new shares to be admitted totrading on the ASX and AIM. Trading in the new shares is expected to commenceon or around 10 June 2014. Following the issue of these securities the total number of securities on issueis as follows: 4,450,368,534 Ordinary Fully Paid Shares 80,508,341 Options ($0.05, 31 January 2016) 855,166 Unlisted Options (£0.04, 30 June 2015) 7,058,824 Unlisted Options (£0.17, 30 April 2016) 17,921,146 Class B Performance Shares 5,180,000 Unlisted Options (£0.075, 31 January 2017) 9,000,000 Unlisted Options (£0.125, 31 March 2015) 15,708,801 Unlisted Options (£0.0615, 19 October 2015) 32,275,862 Unlisted Options (£0.05075, 30 November 2015) 5,000,000 Unlisted Options ($0.10, 31 January 2016) 5,000,000 Unlisted Options ($0.06, 10 February 2016) 146,533,850 Unlisted Options (£0.04, 30 April 2016) 5,000,000 Unlisted Options (£0.037, 11 July 2016) 476,190 Unlisted Options (£0.021, 25 July 2016) 952,381 Unlisted Options (£0.021, 29 July 2016) 6,714,284 Unlisted Options (£0.021, 31 August 2016) 9,000,000 Unlisted Options (£0.02, 31 August 2016) 3,947,369 Unlisted Options (£0.19, 30 September 2016) 8,666,670 Unlisted Options (£0.18, 30 September 2016) 694,445 Unlisted Options (£0.018, 31 October 2016) 2,205,885 Unlisted Options (£0.017, 31 October 2016) 1,250,000 Unlisted Options (£0.016, 31 October 2016) 17,333,336 Unlisted Options (£0.015, 31 October 2016) 3,000,000 Unlisted Options (£0.015, 30 November 2016) 1,428,571 Unlisted Options (£0.014, 30 November 2016) 3,923,077 Unlisted Options (£0.013, 30 November 2016) 2,000,000 Unlisted Options ($0.0321, 11 December 2016) 4,083,334 Unlisted Options (£0.012, 31 December 2016) 20,545,457 Unlisted Options (£0.011, 31 December 2016) 21,136,365 Unlisted Options (£0.011, 31 January 2017) 1,450,690 Unlisted Options (£0.010, 28 February 2017) 7,500,000 Unlisted Options (£0.012, 1 March 2017) 3,125,000 Unlisted Options (£0.008, 31 March 2017) 6,250,000 Unlisted Options (£0.006, 31 March 2017) 14,583,334 Unlisted Options (£0.006, 30 April 2017) 7,500,000 Unlisted Options (£0.005, 30 April 2017) 33,000,000 Unlisted Options (£0.005, 31 May 2017) 11,666,667 Unlisted Options (£0.006, 31 May 2017) Yours faithfully Rory Scott Russell Chief Executive Officer Contacts Buchanan (Financial PR - UK) Range Resources Limited Ben Romney / Helen ChanRory Scott Russell T: +44 (0) 20 7466 5000 E: rangeresources@buchanan.uk.com GMP Securities Europe LLP (Joint Cantor Fitzgerald(Nominated AdvisorandBroker) Joint Broker)Rob Collins / Liz Williamson David Porter / Tom Sheldon / JulianT: +44 (0) 207 647 2800 Erleigh (Corporate finance) / Richard Redmayne (Corporate broking) T: +44 (0) 20 7894 7000 PPR (Financial PR -Australia) Cowen Group(Principal American Liaison) OTCQX International Market (U.S.)David Tasker Christopher Weekes / Stephen NashT: +61 (8) 9388 0944 T: +1 646 562 1000E: david.tasker@ppr.com.au Range Background Range Resources Limited is a dual listed (ASX:RRS; AIM:RRL) oil & gasexploration company with oil & gas interests in Trinidad; Puntland, Somalia;the Republic of Georgia; Guatemala; Texas, USA, and Colombia. * In Trinidad Range holds a 100% interest in holding companies with three onshore production licenses and a fully operational drilling subsidiary. Independently assessed Proved (P1) reserves in place of 17.5 MMBO with 25.2 MMBO of proved, probable and possible (3P) reserves and an additional 81 MMBO of unrisked prospective resources. Range also has a farm in with Niko Resources giving it exposure to circa 280,000 acres of prospective onshore and offshore acreage. * In the Republic of Georgia, Range holds a 45% farm-in interest in onshore blocks VIa and VIb, covering approx. 7,000sq.km. The Company is focussing on a revised development strategy that will focus on low-cost, shallow appraisal drilling of the contingent resources around the Tkibuli-Shaori ("Tkibuli") coal deposit, which straddles the central sections of the Company's two blocks, along with attracting potential farm-in partners across the license areas given the recent review performed across the licenses. * In Puntland, Range holds a 20% working interest in two licenses encompassing the highly prospective Dharoor and Nugaal valleys. The operator and 60% interest holder, Horn Petroleum Corp. (TSXV: HRN) has completed two exploration wells and will continue with a further seismic and well program over the next 12-18 months. * Range holds a strategic stake in Citation Resources Limited (ASX: CTR) and Latin American Resources (LAR), which hold interest in two oil and gas development and exploration blocks in Guatemala with Canadian NI 51-101 certified proved plus probable (2P) reserves of 2.3 MMBBL (100% basis). Range has a direct and indirect 24% interest in the Guatemalan Project. Page 5 of 5 Australia LondonGround Floor, 1 Havelock Street, West Suite 1A, Prince's House, 38 JermynPerth WA 6005, Australia Street, London SW1 6DNt:+61 8 9488 5220, f:+61 8 9324 2400 t:+44 (0)207 025 7040, f:+44 207 287e:admin@rangeresources.com.au 8028 w: www.rangeresources.com.au