Tower Resources Regulatory News (TRP)

20 October 2016

Tower Resources plc

Results of Open Offer and General Meeting

Contractual Issue of Equity

Tower Resources plc (the "Company" or "Tower" (TRP.L, TRP LN)), the AIM listed Africa focussed oil and gas exploration company, announced on 8 September 2016 the results of a placing of £1.03 million (US$1.35 million) and an intended Open Offer of up to £0.56 million (US$0.73 million) at the Placing Price of 2.25 pence per share.

The Open Offer has now closed in accordance with its terms. The Company has received valid acceptances from Qualifying Shareholders, including for excess applications, in respect of 24,994,835 Open Offer shares. This represents 98.9 per cent of the maximum Open Offer shares available under the Open Offer. The Company has therefore raised gross proceeds of approximately £0.56 million through the Open Offer.

The Company also announces that at the General Meeting of the Company, which took place earlier today, all resolutions relating to the issued share capital authorisations of the Company put to shareholders were passed.

As further detailed below, Tower has also issued a total of 3,330,332 New Ordinary shares, at a price ranging from 2.25 to 5.66 pence per share, as part payment for services provided to the Company during the year to date:

§ Pursuant to contractual arrangements 288,858 New Ordinary shares have been issued, at a price of 5.66 pence per share, to P.D.F Limited ("P.D.F"), the Company's Outsourced Exploration Department (OExD®), a company owned by Dr. Mark Enfield, Managing Director, in part payment for services for the period covering 1 July 2016 to 30 September 2016. P.D.F now holds a total of 1,877,546 Ordinary Shares, including 69,401 Ordinary shares in Tower owned by Dr. Mark Enfield, representing a combined interest of 1.8 per cent of the issued share capital. The issue price of 5.66 pence per share represents the average of the closing share price for the calendar quarter ending 30 September 2016;

§ 3,041,474 New Ordinary shares, at the Placing Price of 2.25 pence per share, have also been issued to specific contractors in part payment for services rendered to the Company during 2016.

Application has been made for the 28,325,167 Open Offer and contractual 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 above shares will occur on or around 8.00 a.m. on 26 October 2016.

Following Admission of the Open Offer and contractual shares and in accordance with Disclosure and Transparency Rules, the Company's issued ordinary share capital is now comprised of 104,128,588 Ordinary shares of 1.0 pence each with voting rights.

The above figure may be used by shareholders as a denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Tower under the FCA's Disclosure and Transparency Rules.

Jeremy Asher, Chairman of Tower, commented:

"We are pleased that there was significant interest in the Open Offer, while at the same time also glad that there was sufficient size available in the Offer to meet all the requests for shares at this price. We have been continuing to work on the financing of the work program on the Company's Thali block in Cameroon, and on cost reduction measures, so that once Thali is financed we will be in a good position to wait out the market cycle. We look forward to sharing more news with shareholders over the coming months". 

Contacts

Tower Resources plc

Jeremy Asher (Chairman)

Graeme Thomson (CEO)Andrew Matharu (VP - Corporate Affairs)+44 20 7253 6639

Peel Hunt LLP (Nominated Adviser and Broker)

Richard Crichton/Ross Allister+44 20 7418 8900