Director/PDMR Shareholding

4 January 2013

Faroe Petroleum plc

("Faroe Petroleum" or the "Company")

Notification of Directors' interests and conditional award of shares

Mr Graham Stewart (Chief Executive) and Helge Hammer (Chief Operating Officer) have notified the Company that on 4 January 2013 they bought respectively 23,726 and 18,789 ordinary shares of 10p each in the Company ('Shares').

These share purchases are being treated as 'Investment Shares' under the Faroe Petroleum plc Co-Investment Plan (the "CIP") and as a consequence the Remuneration Committee, which is comprised wholly of non-executive directors, has made the following conditional Matching Share awards at a price per share of 137 pence:

The CIP provides for the Remuneration Committee to allocate three Matching Shares, subject to certain performance conditions, for every Investment Share that would have been purchased if the gross pre-tax salary had been invested in Shares.

The release of these Matching Share awards, in full or in part, is subject to various performance criteria and the continued employment and retention by the participant of the Investment Shares for three years from the date of grant.

Following this transaction Graham Stewart and Helge Hammer hold the following Shares together with options over the same (including Matching Shares) exercisable at various prices up to 186.25 pence, as follows:

Graham Stewart also holds an option to acquire 84,547 Shares under a Long Term Incentive Plan exercisable at the nominal price of 10 pence per Share.

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