Tern Regulatory News (TERN)

31 July 2013

Silvermere Energy plc

("Silvermere" or the "Company")

Unaudited Interim Results for the Six Months ended 30 June 2013

Silvermere, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the US, today announces its interim results for the six months ended 30 June 2013.

The Company's various announcements during 2013 have identified the reasons why the steady progress made through 2012 unfortunately stalled in 2013. Although the I-1 Well began to produce in February and March 2013, technical difficulties subsequently resulted in suspension of production. Additional expenditure on remedial works is required in order to attempt to recommence production. The fall in US gas prices as domestic supply of natural gas from fracking increases has also impacted the financial viability of the business.

Silvermere has more recently been unable to pay its share of the I-1 Well's development costs or to raise new finance, since the placing in January 2013, in which a placee failed to honour his commitment for £80,000. The technical difficulties and halted production at the I-1 Well have also impacted the Company's share price and commercial prospects and the Board has therefore been unable to follow its strategy of acquiring other producing assets.

Following the announcement on 9 May 2013 when the Directors requested trading in the Company's shares to be suspended on the AIM market, they have endeavoured to find the best solution for shareholders and creditors.

Working alongside the Company's major creditor, Mineral and Financial Investments Ltd ("MAFI"), the Board has ultimately determined that the best way forward would be to dispose of all or part of the Mustang Island asset to the operator in consideration for a release from past and future obligations and to turn the Company into a clean shell through a CVA. A number of parties expressed interest in financing a CVA and investing in the resulting shell and on 9 July 2013 the Company signed Heads of Terms and entered into exclusive discussions with a consortium of investors.

The Board is disappointed by this outcome. We trust shareholders will accept that the Board has played its hand as professionally as possible. We would like to thank the Board of MAFI, our major creditor, for its commitment to finding a solution and we wish the incoming Board good fortune in creating value for all shareholders.

 Frank H. Moxon

Non-executive Chairman

Unaudited Group Statement of Comprehensive Income

for the 6 months ended 30 June 2013

Unaudited Group Statement of Financial Position

as at 30 June 2013

Unaudited Group Statement of Cash flows

for the 6 months ended 30 June 2013

Notes to the unaudited interim statement

for the 6 months ended 30 June 2013

1. General information

Silvermere Energy Plc is an investor in oil and gas assets.

The Company is a public limited company listed on AIM and is incorporated in England and Wales.

The address of its registered office is 31 Harley Street, London, W1G 9QS. Items included in the financial statements of the Company are measured in Pound Sterling which is the currency of the primary economic environment in which the entity operates. The financial statements are also presented in Pound Sterling which is the Company's presentational currency.

2. Basis of preparation

The interim financial statements of Silvermere Energy Plc have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU) and on the historical cost basis using the accounting policies which are consistent with those set out in the Company's Annual Report and Accounts for the year ended 31 December 2012.

This interim financial information for the six months to 30 June 2013 was approved by the board on 29 July 2013.

The unaudited interim financial information for the period ended 30 June 2013 does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The comparative figures for the year ended 31 December 2012 are extracted from the audited statutory financial statements for that period.

3. Loss per share

Loss per share is calculated by reference to the weighted average of 33,870,865 ordinary shares in issue during the period (30 June 2012 - 20,926,393 and 31 December 2012 - 25,117,597).

The diluted loss per share is the same as the basic loss per share as the losses in each period have an anti-dilutive effect.

4. Share capital

The deferred shares have negligible value, being subject to restrictions as to voting, participation and redemption according to the new Articles of Association then adopted, nor are they quoted on the Stock Exchange.

On 23 January 2013, 5,305,716 shares were issued for cash at 7p per share as a result of a private placing.

5. Note to the cash flow statement

6. Availability of Interim results

Copies of the report will be available from the Company's office and also from the Company's website www.silvermere-energy.com.