Bulgarian Gas Sales Contracts Update

6 January 2012

Bulgarian Gas Sales Contracts Update

Melrose Resources plc ("Melrose" or "the Company"), the oil and gas exploration, development and production company, today provides an update on its Bulgarian gas sales arrangements.

The Company is pleased to announce that it has signed amendments to its gas sales contracts for the Kaliakra and Kavarna fields in the Galata Block to cover the planned 2012 production volumes. The contracts have been signed with Bulgargaz EAD, the state-owned gas utility company, and Agropolychim, an independent industrial consumer. The contract nominations reflect a total volume of 12.7 Bcf and the received price is expected to average $8.32 per Mcf (assuming an exchange rate of 1.30 Euro per US dollar) as compared to the averaged received price for 2011 of $7.35 per Mcf.

Commenting on today's announcement, David Thomas, Chief Executive, said:

"The new gas sales arrangements represent a material price improvement and will underpin Melrose's cash generation this year. Our Bulgarian and Egyptian revenues will allow the Company to pursue an active work programme during 2012, whilst continuing to reduce financial gearing to below 60 percent by the end of the year."

For further information please contact:

or visit www.melroseresources.com

Glossary:

Bcf - billion cubic feet of gas

Mcf - thousand cubic feet of gas

Disclaimer

This announcement contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business. While Melrose believes the expectations reflected herein to be reasonable, the actual outcome may be materially different owing to factors either within or beyond Melrose's control, and accordingly no reliance may be placed on the figures contained in such forward looking statements.