Cavendish Asset Mgnt. statement on Faroe Petroleum

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION

09 January 2019

Statement by Cavendish Asset Management Limited ("Cavendish" or "we" or "our") about the proposed offer by DNO ASA ("DNO") for Faroe Petroleum plc ("Faroe")

As the views of Cavendish, that it considered the offer by DNO unacceptable, has been widely reported in the press, we are making this formal statement of our current position.

In response to the increased and final offer by DNO for Faroe, we remain of the view that it is well below our expectations and the minimum independent valuation of 186p. However we have determined that we would not want to be a minority holder in Faroe due to the different management approach of DNO.

Accordingly, we have today divested of our entire discretionary holdings in Faroe.