Divestment of assets located in South East Texas

6 December 2011

Divestment of assets located in South East Texas, USA

Melrose Resources plc ("Melrose" or "the Company"), the oil and gas exploration, development and production company, today announces that it has completed the sale of its gas assets in South East Texas to Faulconer Resources 2010 Limited Partnership LLP for a cash consideration of $5.8 million. The divested assets had net proven plus probable reserves of 2.5 Bcf (year end 2010), production of 1.2 MMcfpd (average first half 2011) and the consideration received exceeded book value.

Commenting on the above, David Thomas, Chief Executive, said:

"We are pleased to complete the sale of our remaining gas leases in South East Texas which effectively concludes the divestment of Melrose's US asset portfolio. We can now fully focus the Company's resources on our established core areas in Egypt and the Black Sea and on business development opportunities in areas where we have competitive advantages."

For further information please contact:

or visit www.melroseresources.com

Glossary

Bcf - billion cubic feet of gas

MMcfpd - million cubic feet per day

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.