10 November 2014

Second significant oil discovery offshore Senegal

 Excellent quality reservoir sands with net oil pay of 36 metres

 95 metre gross oil bearing column with a gas cap

 Oil of 32° API from samples of gas, oil and water recovered to surface

 Preliminary estimates of the contingent resource* range from P90: 150 million barrels, P50:

330 million barrels and P10: 670 million barrels (mmbbls)

 Preparing to drill ahead on SNE-1 well to the deeper Aptian carbonate target

FAR Ltd (ASX: FAR) has made a second oil discovery offshore Senegal in West Africa in the SNE-1 well. The SNE-1 well has discovered a 95 metre gross oil bearing column with net oil pay zone thickness of

36 metres in Albian aged sandstones which display excellent reservoir potential. High quality 32° API

oil has been recovered to the surface.

The SNE-1 well is located in 1,100 metres (m) water depth, approximately 100 kilometres offshore in the Sangomar block with a target total depth of ~3,000 m.

Notices of Discovery for the SNE-1 well and FAN-1 well have been issued to the Government of

Senegal.

FAR managing director, Cath Norman, said,

"This is another very significant oil find for FAR and Senegal. Based on preliminary estimates it is highly likely to be a commercial discovery."

"The SNE-1 discovery is a company making event for FAR following our earlier oil discovery in the FAN-1 well. The SNE-1 discovery has potential to lead to a large stand-alone development and is an important step forward in establishing an entirely new petroleum province which would be transformational for Senegal."

"It is incredible that FAR has made two very important oil discoveries with its first two Senegal wells. We expect to resume drilling on the SNE-1 well shortly to evaluate the deeper Aptian carbonate objective."

"The FAN-1 well intersected a significant gross 500m oil-bearing section which indicates the presence of a prolific oil generating province. The SNE-1 well proves hydrocarbons have migrated up onto the shelf area which bodes well for the extensive suite of prospects yet to be drilled in our Senegal blocks."

"FAR looks forward to working with the Government of Senegal and our joint venture partners in finalising follow up appraisal and exploration drilling plans."

*Refer to Cautionary Statement in this report (Page 3) relating to estimates of prospective and contingent resources

Initial analysis of the SNE-1 well data indicates:

 95m gross oil bearing column with a gas cap

 Excellent Albian reservoir sands with net oil pay of 36m

 High quality oil of 32° API from samples of gas, oil and water recovered to surface

 Operator's preliminary estimates of the gross contingent resource* range from P90, 150 mmbbls, P50, 330 mmbbls and P10, 670 mmbbls (net to FAR; P90, 23 mmbbls, P50, 50 mmbbls, P10, 101 mmbbls)*.

Further evaluation of this Albian objective is continuing. The deeper target of karstified and fractured Lower Cretaceous (Aptian age) shelf carbonates is yet to be reached. A further announcement will be issued once operations are completed on SNE-1 anticipated in late November.

The first well FAN-1, drilled using the Cajun Express, discovered high quality, light oil in multiple stacked clastic reservoirs.

The results of the FAN-1 well and the final analysis from the SNE-1 will be used to decide optimal follow up drilling locations to determine the extent of discovered accumulations and to evaluate the wider potential identified within the Joint Venture's Senegal blocks. This additional activity is targeted to start in 2015.

Figures 1 and 2: Location of the two Senegalese wells in the FAR 3D seismic area, offshore Senegal

About the drilling program in Senegal

The FAN-1 and SNE-1 wells are the first deep water (>1,000m) wells drilled in Senegalese waters and the first offshore wells to be drilled for over 20 years.

Both FAN-1 and SNE-1 have significant follow-up drilling potential in the event of a discovery. FAR's three contiguous Senegalese blocks - Rufisque Offshore, Sangomar Offshore and Sangomar Offshore Profond - cover 7,490km2.

From 2,050km2 of modern 3D seismic data acquired in the blocks, FAR has mapped 11 potentially drillable prospects as well as numerous other leads, many supported by associated seismic amplitude responses in plays including the 'fan' and 'shelf'.

In February 2013 FAR assessed its Senegal blocks to have prospective resources of 3.585 billion barrels of oil (538 million net to FAR)* (reference: ASX release 27/02/2013).

*Refer to Cautionary Statement in this report (Page 3) relating to estimates of prospective and contingent resources

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FAR retains a 15% working interest in the permits and Cairn Energy, ConocoPhillips and Petrosen (the Senegalese National Oil Company) hold 40%, 35% and 10% respectively. Petrosen's interest is carried through this exploration phase.

The SNE-1 well has been designated as "tight" by the Operator and hence no information related to depth or formation will be provided during the drilling beyond what is required to meet ASX continuous disclosure obligations.

This release is in relation to the matter referred to in the Company's trading halt announcement of 7

November 2014. The trading halt can now be lifted.

Disclaimers

*Contingent Resources - All contingent resource estimates presented in this report have been prepared by Cairn Energy, the Operator of FAR's Senegalese blocks on 7 November 2014. In the Company's view the estimates have been prepared in accordance with the definitions and guidelines set forth in the Petroleum Resources Management System, 2007 approved by the Society of Petroleum Engineer and have been prepared using probabilistic methods and the analysis of well, seismic and other subsurface data. The estimates provided in this report are P90, P50 and P10 which respectively represent that there is a 90%, 50% and 10% probability that the actual resource volume will be in excess of the amounts reported. The estimates are unrisked and have not been adjusted for an associated chance of development. The 100% basis and net to FAR contingent resource estimates include Government share of production applicable under the Production Sharing Contract.

*Prospective Resource Estimates Cautionary Statement - With respect to the prospective resource estimates contained within this report, it should be noted that the estimated quantities of Petroleum that may potentially be recovered by the future application of a development project may relate to undiscovered accumulations. These estimates have an associated risk of discovery and risk of development. Further exploration and appraisal is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

Prospective Resources - All prospective resource estimates presented in this report are prepared as at 27 February 2013. (Reference: FAR ASX release of 27/02/2013). The estimates have been prepared by the Company in accordance with the definitions and guidelines set forth in the Petroleum Resources Management System, 2007 approved by the Society of Petroleum Engineer and have been prepared using probabilistic methods. Unless otherwise stated the estimates provided in this report are Best Estimates and represent that there is a 50% probability that the actual resource volume will be in excess of the amounts reported. The estimates are unrisked and have not been adjusted for both an associated chance of discovery and a chance of development. The 100% basis and net to FAR prospective resource estimates include Government share of production applicable under the Production Sharing Contract.

Competent Person Statement Information - The hydrocarbon resource estimates contained in this report have been compiled or reviewed by Peter Nicholls, the FAR Limited exploration manager. Mr Nicholls has over 30 years of experience in petroleum geophysics and geology and is a member of the American Association of Petroleum Geology, the Society of Petroleum Engineers and the Petroleum Exploration Society of Australia. Mr Nicholls consents to the inclusion of the information in this report relating to hydrocarbon resources in the form and context in which it appears. The resource estimates contained in this report are in accordance with the standard definitions set out by the Society of Petroleum Engineers, Petroleum Resource Management System.

Forward looking statements - This document may include forward looking statements. Forward looking statements include, are not necessarily limited to, statements concerning FAR's planned operation program and other statements that are not historic facts. When used in this document, the words such as "could", "plan", "estimate", "expect", "intend", "may", "potential", "should" and similar expressions are forward looking statements. Although FAR Ltd believes its expectations reflected in these are reasonable, such statements involve risks and uncertainties, and no assurance can be given that actual results will be consistent with these forward looking statements. The entity confirms that it is not aware of any new information or data that materially affects the information included in this announcement and that all material assumptions and technical parameters underpinning this announcement continue to apply and have not materially changed.

*Refer to Cautionary Statement in this report (Page 3) relating to estimates of prospective and contingent resources

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