ABN 88 002 522 0994/50 Bourke StreetMelbourne VIC 3000G.P.O. BOX...

ABN 88 002 522 099
4/50 Bourke Street
Melbourne VIC 3000
G.P.O. BOX 1086
Melbourne VIC 3001
p +61 3 9662 1407
f +61 3 9662 1409
[email protected]
1 June 2006
Companies Announcement Office
Australian Stock Exchange Limited
20 Bond Street
SYDNEY NSW 2000
By E-Lodgement
TFG and PUNTLAND GOVERNMENT UNITE IN SUPPORT
Further to the Company’s announcement last week in relation to recent
communications from the Transitional Federal Government of Somalia (“TFG”), the
Company is pleased to advise that following key meetings of representatives of the
TFG and Puntland Government in Bosaso this week, both governments have agreed
to work together in allowing Puntland to explore and develop its natural resources.
Importantly for Range, the agreement recognises the existing Contract of Work in
place and, in the Board’s opinion, now allows Range to fast track its planned
exploration and joint venture / farm out program for Puntland’s mineral and
hydrocarbon assets. Key terms of the mou signed by His Excellency President Hersi of
Puntland and Acting President and Speaker of the Parliament of the TFG, Mr Sherif
Hassan Sh. Aadan include:
a) the continuation of exploration and production of minerals and oil in Puntland
while respecting prior agreements. The parties will also look at using a block
system to encourage other third parties to enter into Puntland (note that this is
consistent with Range’s current strategy of retaining identified mineral and
hydrocarbon areas and returning residual land holdings.);
b) the governments to start discussions regarding how to divide royalty and other
interests before the production stage of the minerals and oil in Puntland state
are reached;
c) the formulation of laws regarding exploration, production, administration and
shares of the resources in the sup soil such as minerals, oil etc. The formulation
of such laws will be subject to collaboration between the governments;
d) Both governments to create an environment of cooperation and
communication through official channels; and
e) The parties to work together to prevent all that could jeopardise their
cooperation which could lead to mistrust.
RECENT INTERNET ARTICLES
The Company has been aware for some time of websites posting false and
misleading information regarding, the Compan, the Company’s activities in Puntland
and the actions of the Puntland Government. These postings and false reports are not
supported by the vast majority of people in Puntland and, in fact, do not emanate
from within the country but from a small minority outside the country. These postings
have increased recently culminating in false reports attributed to the BBC’s Somalia
Service. The Company has not only informed the BBC of the false reports attributed to
them but also appointed information security consultants to track down the hosts of
these sites with a view to commencing legal action.
It is the Company’s view that the increase in these negative, misleading and/or false
reports is as a result of Range’s success and credibility in actually commencing
exploration activities in Puntland and demonstrating the vast mineral and
hydrocarbon potential that the region holds. The negativity is an attempt to
destabilise the agreements currently in place in the hope that if successful these
individuals may subsequently benefit themselves from other parties who are seeking
to exploit opportunities in Puntland.
The self-interest shown from a small minority with possible vested interests whilst
irritating, does indicate that the individuals involved are fully aware of the enormous
potential referred to above and the flow on benefits for the social and economic
infrastructure of Puntland. We urge our shareholders to be wary of information posted
outside of official Puntland and Company sources.
The Company looks forward to updating shareholders shortly on further key
developments.
Y
ours sincerely
MIKE POVEY
Executive Chairman
www.rangeresources.com.au