STA.L Regulatory News (STA)

4 August 2014 International Petroleum Loan Update The Board of Range is pleased to announce that it has signed a settlementagreement with International Petroleum with respect to repayment of Range's USD8 million loan by International Petroleum Ltd (IOP). Background to the transaction As part of a proposed merger in 2013, Range lent USD 8 million to IOP under aAUD 15 million loan agreement. The proposed merger was aborted in H2 2013 andthe loan was due to have been repaid with interest on 30 April 2014. Due toIOP's financial constraints, it has been unable to repay the loan to date. Settlement agreement signed Range has agreed to extend the loan repayment date to 30 November 2014 to allowIOP to complete the sale of its Russian assets. Upon conclusion of the sale, and according to the settlement agreement, IOPwill make a cash repayment of USD 500,000 to Range and all other outstanding monieswill convert into ordinary shares of IOP. Following conversion, Range is expected tohold approximately 9% of the enlarged share capital of IOP. In addition, IOP will issue5 million IOP options to Range exercisable at $0.06 in 24 months from issue date. IOP is listed on the National Stock Exchange of Australia (NSX) and had amarket capitalisation of AUD 71 million prior to suspension of trading in H12013. The securities of IOP are expected to be restored to trading on the NSXupon completion of the Russian assets sale and settlement of IOP's creditors,including Range. The loan settlement remains conditional on IOP's shareholder approval on orbefore 30 October 2014 and agreement from other loan creditors of IOP to extendrepayment of their debt on similar terms. Rory Scott Russell, CEO, commented: "Our objective during negotiations with IOP has clearly been to recover as muchvalue from this difficult situation as possible. I believe our objective hasbeen met with this successful commercial outcome. IOP holds an internationalportfolio of exploration and production licences including a large acreageposition in Niger, a highly prospective and under-explored country withconsiderable onshore oil potential. I am pleased that the new team at Range can draw a line under what has been adifficult transaction and focus our full attention on our operations inTrinidad." Yours faithfully Rory Scott RussellChief Executive Officer