Annual Report to Shareholders

28 April 2014 TANGIERS PETROLEUM LIMITED ASX Lodgement of Annual Report Tangiers Petroleum Limited (ASX: TPT; AIM: TPET) ("Tangiers" or "the Company")would like to advise that a copy of the Company's Annual Report for the yearended 31 December 2013 has been lodged on the ASX and is also available on theCompany's website at www.tangierspetroleum.com. The Annual Report was sent toshareholders today. A summary of the audited financial accounts for the year ended 31 December 2013was announced on 9 April 2014. Set out below is the Chairman's Statement asincluded in the Company's Annual Report. CHAIRMAN'S STATEMENT As I pen this report I find myself in uncharted territory. Never before have Icompiled a Chairman's Report in relation to a company where I was not actingduring at least part of the period under review. As such my report will dealwith observations of what transpired in 2013, what we can learn from theseobservations, and our plans for the company going forward. There were a number of key events that occurred during 2013 and beyond; certainof which are more fully dealt with in the Operations Report. The first key event centred on the company's principal asset. A farm-outagreement (FOA) executed with Galp Energia (Galp) in late 2012 was progressedon the Tarfaya Offshore Blocks in Morocco. Galp has assumed Operatorship andthe TAO-1 exploration well is now expected to spud during the second quarter of2014. In the event of success, the well has very positive implications forTangiers, albeit the carry on the well is capped at US$33 million leaving thecompany with the requirement to contribute to 33.33 percent of costs beyond thecap. The next key event was the launching of a takeover bid for Jacka ResourcesLimited (ASX: JKA) ("Jacka") which ultimately lapsed in March 2014. The bid didnot enjoy the full support of the Tangiers shareholder base. Whilst the bid wasa pathway to diversification, in itself a worthy objective, the associatedadditional capital requirements provided a challenge. This latter observation,and the timing of the bid, led to a number of key shareholders withdrawingsupport for the Board. The third and final key event, which occurred after the financial year end, wasthe resignation of two key Board members, including the Executive Chairmanimmediately prior to a General Meeting held in early February 2014. This eventleft the company with only one continuing director, resulting in the suspensionof shares on both AIM and ASX. In this state the company was rudderless,creating some concern with various stakeholders; including ONHYM (the stateowned natural resources company), Galp, and the company's shareholders andstaff. The appointment of a new Board and Managing Director has now rectified theforgoing uncertainty, with suspension of the shares being lifted on both AIMand ASX. On behalf of the Company I would like to express our gratitude to allconcerned, in particular both ONHYM and Galp, who have been very supportiveunder these unusual circumstances. Brent and the staff at Tangiers are to becommended for their efforts during this difficult period. I would like to welcome both Dr Steve Staley and David Wall to the Board.Steve, who is UK based, enjoys a commendable track record and bringssignificant oil and gas experience to the Board. The recruitment of Davidfollowed the screening of multiple applicants across the industry by aspecialist recruitment agency and the Board is confident that David will leadthe Company in a positive direction into the next phase of its lifecycle. Inaggregate, the Board has in excess of 100 years of oil and gas experiencecovering all facets of the upstream oil and gas sector, particularly at thejunior explorer level with strong exposure to Africa. We are cognisant of past events; the need to engage shareholders and to matchfuture diversification plans with capital. The industry in which Tangiersoperates is characterised by both high risk and high rewards. Frontierexploration by its very nature involves a number of challenges. TAO-1 containsthree large, high calibre prospects; however, There are no guarantees thatwells will be successful even where they are supported by modern 3D seismictied into existing hydrocarbon occurrences You may be assured, however, that the Board will manage these risks and developstrategies designed to deliver the best possible outcomes for shareholders.During this early period we ask that shareholders get behind David and his teamas they put in place plans to manage the upcoming TAO-1 well and the periodthat ensues, regardless of the well outcome. We look forward to a rewarding future. Sincerely Michael EvansChairman END Tangiers Petroleum LimitedLevel 2, 5 Ord StreetWest Perth WA 6005, AustraliaPh: +61 8 9485 0990www.tangierspetroleum.com Contacts RFC Ambrian Limited (Nominated Adviser)Mr Oliver Morse / Ms Trinity McIntyre+61 8 9480 2500 Peel Hunt LLP (Joint AIM Broker)Mr Richard CrichtonMr Andy Crossley+ 44 20 7418 8900 Mr Ed Portman (Media and Investor Relations - United Kingdom)Tavistock Communications+44 20 7920 3150