Cessation of Romanian Farm-in Agreement

FOR IMMEDIATE RELEASE

01 November 2010

Melrose Resources plc

Cessation of Romanian Farm-in Agreement

Melrose Resources plc (LSE: MRS) ("Melrose" or "the Company"), the oil and gas exploration, development and production company, was notified this morning by Sterling Resources Limited ("Sterling") that Sterling has withdrawn the request previously made to the Romanian National Agency for Mineral Resources to assign a 32.5 percent working interest in the Pelican and Midia blocks to Melrose. The Company is currently reviewing the implications of this unforeseen event on its future business plans.

Commenting on the update, David Thomas, Melrose's Chief Executive said:

"We understand that this recent development is in response to the protracted delay experienced securing the assignment approval, which has impeded development and exploration activity on the concessions. Whilst it is a disappointing outcome, we retain a positive outlook on our other Western Black Sea initiatives and will be providing an operational update on these and other areas in the near future."

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