Award of Performance Shares

3 October 2013

Alkane Energy plc

("Alkane" or "the Company")

Award of Performance Shares

Alkane announces that on 3 October 2013, performance shares were awarded to three employees under the Alkane Energy plc Employee Performance Share Plan ("Employee Performance Share Plan"). No awards were made to directors of the Company.

A total of 445,293 performance shares were awarded, amounting to 0.36% of the Company's issued share capital. The awards are in respect of ordinary shares of 0.5p each, with a subscription price of 0.5p per share, and are exercisable on 3 October 2016, subject to a performance condition. The condition is that the award will vest if the Company's share price increases from a base of 38.25p per share (which was the closing price on 2 October 2013, the business day immediately prior to the award) to agreed levels on the vesting date. Shares will be vested in proportion to the level of achievement, with no shares vesting if the cumulative increase per annum is less than 10% and the maximum number of shares vesting if the cumulative increase per annum is 20% or greater.

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