STA.L Regulatory News (STA)

7 Oct 2009 10:09

ASX Announcement7 October 2009 DRILLING UPDATE - SMITH #1 WELL, TEXAS Update by Australian based oil and gas explorer Range Resources Limited ("Range" or "the Company") on its exploration drilling programin North Chapman Ranch, Texas.

Smith #1 well, North Chapman Ranch

The exploration well Smith #1 spudded on 4 September 2009. Surface casing has been set and cemented at 1,528 ft (465m).

Name of well Smith #1 Spud date 4 September 2009

Current depth of well ~10,938 ft (3,334m)

Target depth of well ~14,200 ft (4,329m)

RRS beneficial 25% interest During the week, there were some delays in drilling due to problems associatedwith the casing. The operator has now resolved these issues and drilling hasre-commenced.

Figure 1: Unit Texas Rig #35 drilling ahead on Smith #1 well - please refer to the website.

Background on North Chapman Ranch

Range holds a 25% working interest in the drilling of Smith #1 well. The wellshall be drilled to an approximate depth of 14,200 ft (4,329m) or to a depthsufficient to test the Howell Hight formation. If successful, the Smith #1 wellcould trigger significant oil and gas production and development drilling withvery attractive economics, at a time when exploration and development costs inthe US have dropped dramatically.

Range will continue to update the market on a weekly basis during its exploration drilling program.

End

For further information please contact :

Range ResourcesPeter LandauTel : +61 (8) 8 9488 5220Em: plandau@rangeresources.com.auAustralia LondonPPR Conduit PRDavid Tasker Jonathan CharlesTel: +61 (8) 9388 0944 Tel: + 44 (0) 20 7429 6666Em: david.tasker@ppr.com.au Em: jonathan@conduitpr.comRFC Corporate Finance ((Nominated Advisor) Fox-Davies Capital (Broker)Stuart Laing Daniel Fox-DaviesTel: +61 (8) 9480 2500 Tel: +44 (0) 207 936 5200 Appendix 3B New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003.Name of entity RANGE RESOURCES LIMITED ABN 88 002 522 009

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of +securities issued or Ordinary Fully Paid Shares to be issued Listed Options ($0.05 cents, 31 December 2011) 2 Number of +securities issued or to be issued (if known) or 21,683,545 Ordinary Fully Paid Shares maximum number which may be issued 26,682,417 Listed Options ($0.05 cents, 31 December 2011) 3 Principal terms of the +securities (eg, if options, 21,683,545 Ordinary Fully Paid Shares exercise price and expiry date;

if partly paid +securities, the 26,682,417 Listed Options ($0.05 cents,

amount outstanding and due dates 31 December 2011) for payment; if +convertible securities, the conversion price and dates for conversion) , 4 Do the +securities rank equally Yes in all respects from the date of allotment with an existing +class of quoted +securities? If the additional securities do not rank equally, please state: * the date from which they do * the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment * the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 5 Issue price or consideration 16,682,417 Ordinary Fully Paid Shares to be issued in a Placement to Sophisticated and Institutional Investors at 3.5 cents per share with a free attaching Listed Option (5 cents, 31 Dec 2011) raising $2.2m to fund the acquisition of the strategic US Oil & Gas Project, Georgian operations Puntland operations, issue costs and working capital. 1,128 Ordinary Fully Paid Shares to be issued on the conversion of listed 5c options. 5,000,000 Ordinary Fully Paid Shares and 10,000,000 Listed Option (5 cents, 31 Dec 2011) to be issued in lieu of consulting services 6 Purpose of the issue 16,682,417 Ordinary Fully Paid Shares to be issued in a Placement to (If issued as consideration for Sophisticated and Institutional the acquisition of assets, Investors at 3.5 cents per share with a clearly identify those assets) free attaching Listed Option (5 cents, 31 Dec 2011) raising $0.58m to fund the acquisition of the strategic US Oil & Gas Project, Georgian operations Puntland operations, issue costs and working capital. 1,128 Ordinary Fully Paid Shares to be issued on the conversion of listed 5c options. 5,000,000 Ordinary Fully Paid Shares and 10,000,000 Listed Option (5 cents, 31 Dec 2011) to be issued in lieu of consulting services 7 Dates of entering On or about 7 October 2009 +securities into uncertificated holdings or despatch of certificates Number +Class

8 Number and +class of all 584,952,954 Ordinary fully paid shares (RRS)

+securities quoted on ASX (including the securities 64,901,186 Listed Options (RRSOA) in clause 2 if (A$1.00, 1 October 2010) applicable) 390,505,105 Listed Attaching Options (RRSO) ($A0.05, 31 December 2011) Number +Class 9 Number and +class of all 3,177,029 Unlisted Options (A$0.50, 30 +securities not quoted on June 2012) ASX (including the securities in clause 2 if applicable) 10 Dividend policy (in the Not applicable case of a trust, distribution policy) on the increased capital (interests)

Part 2 - Bonus issue or pro rata issue

11 Is security holder approval N/A required? 12 Is the issue renounceable or N/A non-renounceable? 13 Ratio in which the +securities will N/A be offered 14 +Class of +securities to which the N/A offer relates 15 +Record date to determine N/A entitlements 16 Will holdings on different registers N/A (or subregisters) be aggregated for calculating entitlements? 17 Policy for deciding entitlements in N/A relation to fractions 18 Names of countries in which the N/A entity has +security holders who will not be sent new issue documents Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7. 19 Closing date for receipt of N/A acceptances or renunciations 20 Names of any underwriters N/A 21 Amount of any underwriting fee or N/A commission 22 Names of any brokers to the issue N/A 23 Fee or commission payable to the N/A broker to the issue 24 Amount of any handling fee payable N/A to brokers who lodge acceptances or renunciations on behalf of +security holders 25 If the issue is contingent on N/A +security holders' approval, the date of the meeting 26 Date entitlement and acceptance form N/A and prospectus or Product Disclosure Statement will be sent to persons entitled 27 If the entity has issued options, N/A and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders 28 Date rights trading will begin (if N/A applicable) 29 Date rights trading will end (if N/A applicable) 30 How do +security holders sell their N/A entitlements in full through a broker? 31 How do +security holders sell part N/A of their entitlements through a broker and accept for the balance? 32 How do +security holders dispose of N/A their entitlements (except by sale through a broker)? 33 +Despatch date N/A

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation ofsecurities34 Type of securities (tick one) (a) Securities described in Part 1 (b) All other securities Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents 35 If the +securities are +equity securities, the names of the 20 largest holders of the additional +securities, and the number and percentage of additional +securities held by those holders 36 If the +securities are +equity securities, a distribution schedule of the additional +securities setting out the number of holders in the categories 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over 37 A copy of any trust deed for the additional +securities

Entities that have ticked box 34(b)

38 Number of securities for which +quotation is sought 39 Class of +securities for which quotation is sought 40 Do the +securities rank equally in all respects from the date of allotment with an existing +class of quoted +securities? If the additional securities do not rank equally, please state: * the date from which they do * the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment * the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 41 Reason for request for quotation now Example: In the case of restricted securities, end of restriction period (if issued upon conversion of another security, clearly identify that other security) Number +Class 42 Number and +class of all +securities quoted on ASX (including the securities in clause 38)

Quotation agreement

1 +Quotation of our additional +securities is in ASX's absolute discretion. ASX may quote the +securities on any conditions it decides.

2 We warrant the following to ASX.

-- The issue of the +securities to be quoted complies with the law and is not for an illegal purpose.

-- There is no reason why those +securities should not be granted +quotation.

-- An offer of the +securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

-- Section 724 or section 1016E of the Corporations Act does not apply to anyapplications received by us in relation to any +securities to be quoted andthat no-one has any right to return any +securities to be quoted under sections737, 738 or 1016F of the Corporations Act at the time that we request that the+securities be quoted.

-- We warrant that if confirmation is required under section 1017F of the Corporations Act in relation to the +securities to be quoted, it has been provided at the time that we request that the +securities be quoted.

-- If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the +securities be quoted.

3 We will indemnify ASX to the fullest extent permitted by law in respect ofany claim, action or expense arising from or connected with any breach of thewarranties in this agreement.

4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before +quotation of the +securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here:Date: 7 October 2009

Print name: Jane Flegg - Company Secretary

+ See chapter 19 for defined terms.

Appendix 3B Page 9