kora fallout, page-10

FAR?s share of the well costs are
anticipated to be around US$9 million of which US$6 million is payable post quarter end.

CASH POSITION
Cash balance at 30 June 2011 of AUD$32.3 million.

http://www.far.com.au/IRM/Company/ShowPage.aspx/PDFs/1483-88042419/QuarterlyActivitiesReport

Under an Agreement reached as part of FAR?s participation in the AGC Profond PSC, Ophir
now has the ability to acquire a 25 percent interest in FAR?s Senegal blocks within 60 days of
the completion of the Kora well.
END

. Partners in the Joint Venture will now
undertake a full review of the well results and their implications for remaining
plays and prospects within the AGC Profond PSC and in FAR?s case the
implications, if any, for our Senegal PSC?s which lie in a separate sub basin.

Subject to farmout and regulatory
approvals, FAR plans for a Senegal well in 2012 and potentially 2 wells in Guinea
Bissau.

**As disclosed in earlier releases to ASX, FAR earned its interest in the Kora-1 well and AGC Profond
PSC by paying a disproportionate share of well costs pursuant to an Agreement with Ophir.

http://www.far.com.au/IRM/Company/ShowPage.aspx/PDFs/1480-34312779/CompletionofKora1ExplorationWell
END

In July 2011 FAR was involved in the first deepwater well (Kora) ever drilled north of Sierra Leone and South of Mauritania. Whilst unsuccessful, the Kora well is likely to unlock valuable geological data. Advanced exploration on three promising blocks offshore Guinea-Bissau is continuing, with two wells likely to be drilled in 2012. FAR?s core programme is in Senegal where it operates three deepwater blocks and has committed to drill one well subject to Presidential Decree and farmout.
FAR's mission is to reward shareholder investment as well as employee and partner support with continued growth and exploration success.

again
AR?s core programme is in Senegal where it operates three deepwater blocks and has committed to drill one well subject to Presidential Decree and farmout.

http://www.far.com.au/irm/ShowStaticCategory.aspx?CategoryID=172&HideTopLine=True&masterpage=3

wg