us50m puntland farm in to proceed

23 January 2007
Mr James Rowe
Australian Stock Exchange Ltd
Exchange Plaza
PERTH WA 6000
VIA E-LODGEMENT
$US50M PUNTLAND FARM IN TO PROCEED
Australian oil & gas exploration and development company Range Resources Limited
(ASX: RRS) is proceeding with a US$50m Farm-In and plans for an AIM listing following the
formal signing of the Puntland Production Sharing Agreement (“PSA”) between The
Government of Puntland, Range Resources Limited and Canmex Holdings (Bermuda) II
Limited (a subsidiary of TSXV listed Canmex Minerals Corporation).
As previously disclosed to the market, the PSA relates to the two main exploration areas in
Puntland, namely the Nogal and Dharoor Valleys (see exploration map). Under the terms
of the PSA, Canmex (as part of its proposed US$50m 80% farm in agreement with Range)
will commit to a comprehensive exploration work program under two 3-year periods in
respect of each exploration area.
The work program includes:
a) Geological fieldwork;
b) Acquisition of surface high resolution geochemical surveys;
c) Reprocessing of prior 2D seismic (up to an aggregate of 1,000 line km);
d) Review and integration of all geophysical and geological data; and
e) Drilling of four exploratory wells (over the first (minimum two) and second
exploration periods for both areas).
The PSA signing was attended by His Excellency, Puntland President Hersi, Director General
of the Puntland Energy and Mineral Resource Agency, Hassan Mohamoud, Range
Executives and Canmex President and CEO Richard Schmitt.

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His Excellency President Hersi commented:
“Range and Puntland have been working together in the past few years and I am very
happy with the relationship. Canmex has worked with Range and I am very happy with
the deal. I honestly believe our country is rich in natural resources and it requires people to
do the work. The big oil companies were previously all exploring in my country 20 years ago
I was the Governor of the area and believe an oil discovery was near........... I have heard
good things about Canmex and the people involved and I look forward to the
commencement of work as soon as possible. Puntland has always been secure and it looks
like the other parts of the country are now settling down. I am sure that you (Range and
Canmex) will succeed."
Rick Schmitt, President of Canmex, commented, “We very much look forward to working in
the State of Puntland for years to come and greatly appreciate the warm, professional
hospitality extended to us. The signing of the PSA represents the passing of a major
milestone towards beginning our work program on these truly world-class exploration assets
and we look forward to great success.”
With the PSA signed, Canmex electing to proceed with the proposed US$50m farm in joint
venture with Range (both agreements are subject to any necessary Canadian regulatory
approvals and final documentation) and the recent acquisition by Range of key
exploration data compiled in the 1980s and early 90s, the Board of Range Resources
believes that the company has firmly established its ability to deliver on the exploration
and development of key hydrocarbon assets in Puntland for the benefit of both
shareholders and the people of Puntland.
Range Resources Managing Director Mike Povey believes this is a significant milestone for
Range Resources:
“Since Range's first involvement the company has been aware that in order to explore
successfully for hydrocarbons in Puntland it required a Joint Venture partner with a strong
technical team, solid financial backing and preferably experience in the region. In
Canmex and the personnel involved with the company I believe we have found an ideal
partner to aggressively progress the exploration effort.


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The signing of the Production Sharing agreement marks the beginning of a partnership
between the Puntland Government ,Range and Canmex. I am pleased that the Joint
venture negotiations have progressed rapidly and resulted in an agreement that all parties
are happy with and that the exploration commitment made by Canmex will hopefully
result in the discovery of large commercial quantities of oil that can be developed for the
benefit of the Somali people. I and the rest of the Board look forward to working with
Canmex and extending our relationship with them and the Puntland Government in what
should be a very exciting time over the next few years."
It is also important to note that all of the recent events in Somalia in respect of conflicts
involving the Islamic Courts Union have taken place in the Southern part of the country.
The conflicts have largely not involved the key clans of Puntland and have been isolated
outside the oil exploration regions of Puntland some 1000km to the north.
In keeping with its corporate objectives to enhance its shareholder base and actively
pursue growth in other financial markets Range has also appointed a specialist natural
resources and emerging markets UK broking house to proceed with a planned listing on
the London Stock Exchange Alternate Investment Market (AIM). Associated with the
proposed AIM listing is a minimum US$20m institutional placement.
Yours Faithfully
Peter Landau
Executive Director
For further information please contact:
Joanna Kiernan
Tel +61 412 241 292
E [email protected]