Letter to Shareholders

16 September 2013 TANGIERS PETROLEUM LIMITED Letter to Shareholders Dear Shareholder I would like to take this opportunity to update you on the activities of yourCompany, including the asset farm-out process and the search for suitablegrowth opportunities. While this two-pronged strategy is still beingimplemented, as outlined below, your Board is confident that it will deliverstrong returns for shareholders over the short to medium term. Tarfaya Offshore Block - Morocco The Farm-out Agreement between Tangiers and Galp Energia is almost finalised.The only remaining condition to be met is the signing of the Joint Order by theMinisters of Energy and Finance in Morocco. This has been delayed slightly bythe resignation of the Minister of Energy. However, it is expected that theagreement will be approved shortly after the appointment of a new minister.While waiting for approval, preparations for drilling the TAO-1 well arecontinuing. Galp Energia is moving forward with environmental approvals andwell planning with a view to spudding the well in the first half of nextcalendar year. Exploration Permits WA-442-P & NT/P81 - Australia The call for tenders for the acquisition of 500 sq km of 3D seismic data closedon 13 September. The tenders will now be evaluated and a contract is expectedto be awarded in the coming weeks. Tangiers has been assisting CWH with thetender process. New Ventures Over the past six months, Tangiers has rigorously assessed many growthopportunities in Africa. Although some have been quite attractive, none havesatisfied all the criteria your Company has set for its next project. We arecurrently assessing a number of further opportunities but none has progressedas yet to a point of an advanced negotiation. The Board believes that it is important to take the time needed to secure theright growth asset for your Company. That said, we can assure you thatextensive efforts are being made to identify and examine as many opportunitiesas possible. We look forward to updating you on this process when the rightopportunity emerges. Road Show Tangiers will conduct an intensive investor relations roadshow from 24September to 17 October. This will include broker-sponsored presentations inPerth, Sydney, Melbourne, Hong Kong and London. Tangiers will also bepresenting at the upcoming "Resources Rising Stars" conference on the GoldCoast on 2-3 October and a MRQ Investor Event in London on 17 October. EVE HOWELLExecutive Chairman Tangiers 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