Half-yearly Report

23 August 2013 TANGIERS PETROLEUM LIMITED Half Year Report for the Period Ending 30 June 2013 Set out below is a summary of Tangiers Petroleum Limited's ("Tangiers" or theCompany") half yearly report for the period ended 30 June 2013 as extractedfrom the Half Year Report, being: Statement of Comprehensive Income;Statement of Financial Position;Statement of Changes in Equity; andStatement of Cash Flows. A copy of the full Half Year Report is available on the Company's website atwww.tangierspetroleum.com and also from the Australian Securities Exchangewebsite at www.asx.com.au (ASX code: TPT). CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFOR THE HALF YEAR ENDED 30 JUNE 2013 Note Restated 2013 2012 $ $ Income 3(a) 431,800 91,615 Administration expenses 3(b) (992,204) (915,260) Occupancy expenses (308,905) (78,774) Employment benefit expenses 3(c) (510,022) (359,013) Share based payment expense 9 (450,171) (390,323) Depreciation and amortisation expense (12,060) (17,069) Exploration expenditure expensed as (10,816) (11,628)incurred Exploration expenses written off - (6,756) Interest expense (703) - Loss before income tax (2,137,811) (1,687,517) Income tax expense - - Net loss attributable to members of the (2,137,811) (1,687,517)parent Other comprehensive income for the year - - Total comprehensive income for the year (2,137,811) (1,687,517) Basic and diluted loss per share (1.64) (1.72)(cents) CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAS AT 30 JUNE 2013 Note June December 2013 2012 $ $ ASSETS Current Assets Cash and cash equivalents 5 1,741,636 4,174,910 Other receivables 259,159 307,949 Total Current Assets 2,000,795 4,482,859 Non-Current Assets Plant and equipment 60,035 43,710 Other financial assets 6 3,459,898 2,939,949 Exploration and evaluation expenditure 7 9,502,039 9,165,356 Total Non-Current Assets 13,021,972 12,149,015 TOTAL ASSETS 15,022,767 16,631,874 LIABILITIES Current Liabilities Trade and other payables 521,956 445,423 Total Current Liabilities 521,956 445,423 TOTAL LIABILITIES 521,956 445,423 NET ASSETS 14,500,811 16,186,451 EQUITY Contributed equity 8 49,198,225 49,196,225 Share based payment reserves 10,546,273 10,096,102 Accumulated losses (45,243,687) (43,105,876) TOTAL EQUITY 14,500,811 16,186,451 STATEMENTS OF CHANGES IN EQUITYFOR THE HALF YEAR ENDED 30 JUNE 2013 Restated Restated Share based Contributed payment Accumulated Total equity reserve losses equity $ $ $ $ Balance at 1 January 2012 37,561,795 3,087,172 (35,706,057) 4,942,910 Loss for the period - - (1,687,517) (1,687,517) Other comprehensive income - - - - Total comprehensive loss for the - - (1,687,517) (1,687,517)period, net of tax Shares issued during the period 6,014,991 - - 6,014,991 Share based payments - 2,810,848 - 2,810,848 Equity raising costs (2,703,516) - - (2,703,516) Balance at 30 June 2012 40,873,270 8,615,293 (40,110,847) 9,377,716 Balance at 1 January 2013 49,196,225 10,096,102 (43,105,876) 16,186,451 Loss for the period - - (2,137,811) (2,137,811) Other comprehensive income - - - - Total comprehensive loss for the - - (2,137,811) (2,137,811)period, net of tax Shares issued during the period 2,000 - - 2,000 Share based payments - 450,171 - 450,171 Balance at 30 June 2013 49,198,225 10,546,273 (45,243,687) 14,500,811 STATEMENTS OF CASH FLOWSFOR THE HALF YEAR ENDED 30 JUNE 2013 Note 2013 2012 $ $ Cash flows from operating activities Interest received 38,376 27,098 Payments to suppliers and employees (1,617,981) (1,642,164) Net cash flows used in operating (1,579,605) (1,615,066)activities Cash flows from investing activities Payments for exploration and evaluation (369,964) (4,755,165)activities Payments for plant and equipment (28,385) (15,121) Payments for bonds and guarantees - (203,787) Purchase of available-for-sale (609,402) -investments Proceeds from available-for-sale 150,369 -investments Net cash flows used in investing (857,382) (4,974,073)activities Cash flows from financing activities Proceeds from issue of securities 2,000 5,995,791 Share issue costs - (282,991) Net cash flows from financing activities 2,000 5,712,800 Net decrease in cash and cash (2,434,987) (876,339)equivalents Net foreign exchange differences 1,713 68,797 Cash and cash equivalents at beginning 4,174,910 1,452,219of year Cash and cash equivalents at end of year 5 1,741,636 644,677 ROBERT DALTONJoint Company SecretaryTangiers Petroleum LimitedLevel 2, 5 Ord StreetWest Perth WA 6005, AustraliaPh: + 61 8 9485 0990www.tangierspetroleum.com Contacts RFC Ambrian Limited (Nominated Adviser)Mr Stuart Laing+ 61 8 9480 2506 Peel Hunt LLP (Joint AIM Broker)Mr Richard CrichtonMr Andy Crossley+ 44 20 7418 8900 Shore Capital Stockbrokers Ltd (Joint AIM Broker)Mr Jerry KeenMr Bidhi Bhoma+ 44 20 7408 4090 Mr Ed Portman (Media and Investor Relations - United Kingdom)Tavistock Communications+ 44 20 7920 3150