Director/PDMR Shareholding

28 March 2012

Faroe Petroleum plc

("Faroe Petroleum" or the "Company")

Notification of Director's Interests and conditional award of shares

Graham Stewart (Chief Executive), Iain Lanaghan (Finance Director) and Helge Hammer (Chief Operating Officer), have notified the Company that on 27 March 2012 they acquired the following ordinary shares of 10p each in the Company ('Partnership Shares') and have been awarded the following conditional shares ('Matching Shares') under the Faroe Petroleum Share Investment Plan (the "SIP") at a price of £1.6275 each:

The SIP is open to all employees on the same terms where, for every share purchased by an employee the Company will match it with two matching shares. The matching shares are released at the end of a three year holding period (subject to the SIP rules) and the maximum amount that may be invested in Partnership Shares in any tax year is £1,500 per employee. Graham Stewart, Iain Lanaghan and Helge Hammer have committed to invest the maximum of £125/month (noting that Mr Hammer, being resident in Norway, has committed to the SIP in Norwegian Krona and as such the Sterling investment varies slightly from month to month).

At present market purchase shares are being used to satisfy the matching shares.

Following this transaction Graham Stewart, Iain Lanaghan and Helge Hammer hold the following ordinary shares of 10 pence each in the Company, 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 ordinary shares under a Long Term Incentive Plan exercisable at the nominal price of 10 pence per share.

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