Tangiers signs underwriting agreement

10 October 2013 TANGIERS PETROLEUM LIMITED Tangiers signs underwriting agreement for 16c listed options Tangiers Petroleum Limited (ASX: TPT; AIM: TPET) (Tangiers or Company) ispleased to announce that it has executed an Underwriting Agreement that willsee the Company's listed options expiring on 31 October 2013 be fullyunderwritten. This ensures funds of approximately $7.1 million lessunderwriting fees will be received by the Company. Sydney-based FosterStockbroking Pty Ltd (Foster) was appointed Sole Lead Manager and Underwriterand Perth-based Argonaut Capital Limited (Argonaut) acted as Co-Manager to theissue. Under Tangiers' current capital structure, the Company has 38.6 millionoutstanding listed options (ASX: TPTOA) on issue with an exercise price of 16cexpiring on 31 October 2013. Under the terms of the Underwriting Agreement, Foster will arrange for thesubscription of fully paid ordinary shares in the Company equivalent to thenumber of TPTOA options which are not exercised prior to 31 October 2013. Demand for the underwriting of the Options, from both new and existinginstitutional investors, was very strong and participants were scaled backaccordingly. In conjunction with the Company's existing cash, the cash expected to bereceived on completion of the farm-out with GALP and the cash to be receivedfrom the listed options, Tangiers will emerge with approximately $19m in cashto fund its strategic objectives. Foster will receive an underwriting fee of 5%, a Lead Manager fee of 1% on thetotal underwritten amount as well as 2.5 million options exercisable at 45cwith an expiry date of 31 October 2016. These will vest on 31 October 2014. Theunderwriting agreement is on standard terms and conditions for an agreement ofthis type. Executive Chairman Eve Howell commented "We are extremely pleased with theresponse following our recent marketing efforts, in particular from newinstitutions who are set to become shareholders of Tangiers following theoptions underwriting. The Company will soon be well funded with approximately$19m in cash. Approval of the farm-out to Galp Energia is expected soon following the jointministerial approval of the Moroccan government. There have been speculative statements made in the media regarding delays toapprovals from the Ministry of Energy in Morocco because of the resignation inJuly of the Minister of Energy. We have not seen evidence of this andunderstand that it is "business as usual" in the Ministry of Energy." ROBERT DALTONJoint Company Secretary 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