Director Option Awards and Share Issue

For Immediate Release, Embargoed until 8 am

1 December 2014

LGO ENERGY PLC

("LGO" or the "Company")

Director Option Awards and Share Issue

LGO Energy plc today advises that the Company has implemented a performance based option package for its new Directors appointed in August 2014.

Steve Horton, the Company's Chairman since August 2014 and previously the Company's senior non-executive Director since February 2011, has been granted 15 million options (representing 0.55 percent of the current issued share capital of the Company) exercisable into Ordinary Shares of 0.05p each in the Company ("Ordinary Shares") at a 4p exercise price which vest when total Group oil production exceeds 1,250 bopd for 10 consecutive days. These options will expire on 31 December 2020. Mr Horton was also granted options in July 2013 and holds 5 million options with an exercise price of 1p which vest immediately; 3,333,333 options at 1p exercise price which vest upon total group oil production exceeding 500 bopd for 10 consecutive days; 3,333,333 options at 1p exercise price which vest upon total group oil production exceeding 600 bopd for 10 consecutive days; and 3,333,333 options at 1p exercise price which vest upon total group oil production exceeding 700 bopd for 10 consecutive days.

Iain Patrick, a non-executive Director since August 2014, has been granted 15 million options (representing 0.55 percent of the current issued share capital of the Company) exercisable into Ordinary Shares at 4p exercise price which vest when group oil production exceeds 1,250 bopd for 10 consecutive days. These options will all expire on 31 December 2020.

Michael Douglas, a non-executive Director since August 2014, has been granted 15 million options (representing 0.55 percent of the current issued share capital of the Company) exercisable into Ordinary Shares at 4p exercise price which vest when group oil production exceeds 1,250 bopd for 10 consecutive days. These options will all expire on 31 December 2020.

James Thadchanamoorthy, the Company's Finance Director since August 2014, has been granted 32.5 million options (representing 1.19 per cent. of the current issued share capital of the Company) exercisable into Ordinary Shares at 4p exercise price which vest in two equal tranches when total group oil production exceeds 1,250 and 1,750 bopd each for 10 consecutive days. These options will all expire on 31 December 2020. In addition, the Company has agreed to settle accumulated unpaid fees due under his previous employment since 2011 as Director of Finance with the Company through the issue of 6,000,000 new Ordinary Shares at a price of 3.675p per share. As a result, James Thadchanamoorthy will hold a total of 6,000,000 Ordinary Shares representing 0.22 percent of the issued share capital of the Company.

The options referred to above have exercise and issue prices of 4p per share, which compares to the closing price on AIM as at 28 November of 3.675p.

The options issued to the Directors set out above are in accordance with the understandings with those Directors when they joined LGO, that they would be considered for option awards as and when the Board considered it appropriate to do so.

Following the issue of these options the Company has 281,500,000 share options outstanding.

Neil Ritson, LGO's Chief Executive, commented:

"In keeping with the challenges of attracting and retaining highly experienced directors LGO has agreed a package of options for its newly appointed Directors and Chairman that aligns them to the two main drivers of the business: production and share price."

TVR Statement

It is expected that admission of the 6,000,000 new Ordinary Shares on AIM will occur and that trading in such shares will commence on AIM on 8 December 2014. These new Ordinary Shares will rank pari passu in all respects with the Company's existing issued Ordinary Shares. Subsequent to the issuance of these shares, the Company will have 2,728,840,849 Ordinary Shares in issue.

Enquiries:

LGO Energy plc

Beaumont Cornish Limited

Old Park Lane Capital Plc

Bell Pottinger