what the...is rrs doing, page-45

Oil and Gas:
As announced on 21 April 2006 the Company entered into a letter of intent with the Korea National Oil
Corporation (“KNOC”) in respect of a 75% farm in to a concession area in the Nogal Valley Area of Puntland
comprising a portion of the former Conoco Blocks 28 and 29.These areas along with the Dharoor valley are
considered the most prospective in the State and have been subject to extensive seismic survey work that has
identified a number of structural targets. Key terms of the letter of intent include:
• US$10m sign on fee;
• Minimum exploration of US$25m over 2 years to earn 75% of the area; and
• 45 day formal due diligence period with the letter of intent and subsequent formal agreement to
become legally binding upon a decision to proceed.
In the event of KNOC proceeding Range would hold the residual 25%.
The Company is continuing to hold discussions with various interested parties with regard to further farm-in
and joint venture opportunities.