Upland Resource Regulatory News (UPL)

23 February 2018

UPLAND RESOURCES LIMITED

("Upland" or the "Company")

INTERIM RESULTS FOR THE SIX MONTH PERIOD FROM 1 JULY TO 31 DECEMBER 2017

Upland Resources Limited (LSE: UPL), the oil and gas company actively building a portfolio of attractive upstream assets, is pleased to announce its interim results for the six month period between 1 July 2017 and 31 December 2017. The Company continued to make excellent progress in the second half of 2017 and has been able to announce the conditional Farm-in Agreement for a working interest in the UK Seaward Production Licence P2235 which contains the Wick Prospect. Since 31 December 2017 the Company also announced Tune Assets Limited as a new cornerstone investor for the business.

Highlights include:

Post-period end

Steve Staley, Upland Resources Limited CEO, said:

"Our interim results show the continued progress we are making towards executing our strategy. We are seeing good headway being made toward drilling of the Wick Prospect and the recent, successful completion of the environmental survey is an encouraging development as we look towards spudding the well later this year.

I am expecting the next few months to be an exciting time for the Company, and believe we are well placed to take advantage of the opportunities available to us. I am therefore looking forward to updating our shareholders on our progress over the coming weeks."

For more detailed information please see the full Director's Interim Report below. The Interim Report and Accounts will be available shortly at the Company's website www.uplandres.com

This announcement contains inside information for the purposes of Article 7 of the Regulation (EU) No 596/2014 on market abuse

For further information, please contact:

Notes

Upland Resources Limited is an upstream oil & gas company whose highly experienced management team has a track record of creating major value for shareholders in junior oil & gas companies, including Cove Energy plc. The Company has extensive technical and commercial skills and contacts, management having held senior roles in Petronas, Conoco, Shell etc.

REPORT OF THE DIRECTORS

FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2017

Upland Resources ("Upland" or the "Company") continued to make good progress in the second half of 2017.

During the reporting period, Upland assessed a large number of hydrocarbon assets, with a focus on the Company's core areas of the UK, South East Asia and North Africa. On 30th November 2017 it announced that its wholly-owned subsidiary, Upland Resources (UK Onshore) Limited ("Upland UK"), had signed a conditional farm-in agreement with Corallian Energy Limited for a 40% working interest in UK Seaward Production Licence P2235 (UKCS Block 11/24b) (the "P2235 Farm-in Agreement") in the Inner Moray Firth, containing the Wick Prospect.

The Directors believe that the Wick Prospect has an attractive risk/reward balance. The Wick structure as a whole offers the potential for in-place resources of around 250 MMbbl in a well-understood petroleum system yet, because of the shallow water and drilling depth, is estimated to cost only about £4.2 million to drill. It also offers Upland a substantial participating stake in a near-term well on attractive farm-in terms. In addition, the Directors believe that the wider Inner Moray Firth area holds further substantial, unexplored prospectivity.

Upland UK had previously entered into an agreement to acquire a 10% stake in PEDLs 180 and 182, onshore UK. This was contingent on award of planning permissions. In July 2017, North Lincolnshire District Council rejected the planning applications submitted by Egdon Resources UK Limited ("Egdon") (as operator of PEDLs 180 and 182) for the development of Wressle Oil Field for a second time. Egdon then initiated a planning appeal against these decisions. The Planning Inspectorate held hearings in respect of this appeal in early November 2017, with the decision made to reject the appeal in early January 2018.

Outside the UK, good progress continued to be made in business development activities in Malaysia and North Africa. We look forward to updating shareholders in due course.

We expect the coming months to be exciting ones for investors.

Operating environment still providing many opportunities

During the period, oil prices continued their steady recovery. However, the effect of the recently depressed oil price continues to have a significant impact on the oil industry. Costs of many goods and services required to carry out oil & gas exploration and appraisal remain low and some oil companies have not yet returned to levels of activity seen before the price fall. This generally favours Upland by reducing levels of competition and the levels of our costs. Demand for oil is strengthening and major producing nations appear to be abiding by agreed production quotas. We do now see, as a result of the relatively stable oil prices of late, confidence returning to the industry which in the long run is also good for Upland.

Events since the end of the reporting period

On 5 January 2018, the Planning Inspector issued his decision to reject the appeals by Egdon against two of the planning refusals by North Lincolnshire County Council's Planning Committee in respect of the development of the Wressle oil discovery in licences PEDL180 and PEDL182.

Consequently, on 25 January 2018, Upland terminated its farm-in to PEDLs 180 and 182 and was later reimbursed by Europa its £160,000 deposit plus interest. Upland and its subsidiary have no further obligations in respect of this farm-in.

Also in January 2018, Upland replaced Wilkins Kennedy LLP ("WK") with Crowe Clarke Whitehill LLP as its auditors. WK were incurring greater regulatory costs as a result of their work for us than they were making in fees from Upland audit work, making it no longer commercially viable for them to continue.

At the end of January, the Company was pleased to announce the investment of £1,000,000 in new Upland ordinary shares by Tune Assets Ltd at a price of 1.35p per share. Tune Assets holds major interests in a range of entities including Queens Park Rangers Football Club, Caterham Cars and AirAsia. Tune Assets is owned by Tony Fernandes and Kamarudin Meranun, two of the most successful and entrepreneurial businessmen in South East Asia.

Results for the period

The financial results for the six month period ended 31 December 2017 are appended to this report.

Upland made a pre-tax loss of £337,839 for the six months to 31 December 2017, compared to a £416,442 loss for the comparable six months to 31 December 2016. The principal reason for the decreased costs in the six month period is the absence of the one-off expenditures incurred in the comparative period associated with the successful fundraising in that period.

The Company has no debt and continues to be in a strong position to finance its obligations.

Your Board believes that Upland has a bright future ahead of it and is well placed to take advantage of opportunities.

Risks and uncertainties

The Group has identified the following as key risks in the second six months of this financial year:

Sub-surface risks

Risk (1): The success of the business relies on accurate and detailed analysis of the sub-surface. This can be impacted by poor quality data, either historical or recently gathered, and limited coverage. Certain information provided by external sources may not be accurate.

Mitigation: All externally provided and historical data is rigorously examined and discarded when appropriate. New data acquisition is considered and adequate programmes implemented, but historical data can be reviewed and reprocessed to improve the overall knowledge base.

Risk (2): Data can be misinterpreted leading to the construction of inaccurate models and subsequent plans.

Mitigation: All analytical outcomes are challenged internally and peer reviewed. Interpretations are carried out on modern geoscience software.

Corporate risks

Risk: The Group's success depends upon skilled management as well as technical and administrative staff. The loss of service of critical members of the Group's team could have an adverse effect on the business.

Mitigation: The Group periodically reviews the compensation and contract terms of its staff and consultants to ensure they are competitive.

Going Concern

After making enquiries, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they adopt the going concern basis in preparing the Company's financial statements.

Auditing

This interim report and accounts for the six month period ended 31st December 2017 (the "Interim Report and Accounts") has not been audited or reviewed pursuant to the Financial Reporting Council guidance on 'Review of Interim Financial Information''.

Statement of Directors' Responsibilities

The Interim Report and Accounts is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the Interim Report and Accounts in accordance with the Disclosure Guidance and Transparency Rules (the "DTRs") of the United Kingdom's Financial Conduct Authority (the "FCA"). The DTRs require that the accounting policies and presentation applied to the half yearly figures must be consistent with those applied in the latest published annual accounts.

The Directors confirm that, to the best of their knowledge, the set of financial statements contained in the Interim Report and Accounts, which have been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting' as adopted by the European Union, give a true and fair view of the assets, liabilities, financial position and profit and loss of the Group, as required by DTR 4.2.2 and in particular include a fair review of:-

The Directors of Upland [Resources Limited] are Norza Zakaria (Non-Executive Chairman), Stephen Staley (Chief Executive Officer), Jeremy King (Non-Executive) and Bolhassan Di (Non-Executive).