Tuesday 31 March 2020

FAR Limited (ASX: FAR) provides the following update.

The COVID-19 pandemic combined with the precipitous fall in Brent oil price by over 60% since January

2020 has adversely impacted global financial markets including the global availability of credit.

Consequently, the Company’s ability to close the Sangomar Project debt arrangements that were

ongoing during this time have been compromised such that the lead banks to the senior facility have

now confirmed that they cannot complete the syndication in the current environment. As a result, the

Board is of the opinion that, in addition to the senior facility, neither the junior nor mezzanine facilities

that were being arranged will be able to be completed for the foreseeable future. At the end of

February 2020 the company had approximately A$150m cash at bank and no debt.

As announced on 25 March 2020, the Sangomar Operator, Woodside, and our joint venture partners

continue to explore and evaluate all options to preserve and enhance the value of this world class

development.

The company will provide further information on this review by the joint venture as appropriate.

In view of the current global economic climate, the Board has commenced a process to review all

strategic alternatives available to the Company which are focussed on preserving shareholder value

for the longer term.