Final Results

UMC Energy Plc

("UMC" or the "Company")

Final Results

For the year ended 31 December 2012

The Directors present the results of UMC Energy Plc ("Company") and of the consolidated entity, being the Company and its subsidiaries ("Group") and the Group's interest in associates, for the year ended 31 December 2012.

CHAIRMAN'S STATEMENT

Papua New Guinea 

In September 2011, the Group acquired one on-shore (PPL 378) and two off-shore (PPLs 374 and 375) Petroleum Prospecting Licences (PPLs) in Papua New Guinea through the acquisition of PNG Energy Limited (PNG Energy) and that company's wholly owned subsidiary Gini Energy Limited (Gini Energy). Subsequently, in May 2012, Gini Energy was granted a further on-shore licence, PPL 405, by the government of Papua New Guinea.

On 26 March 2012, the Company entered transformational agreements with CNOOC Australia Limited (CNOOC), a subsidiary of CNOOC Limited, the Chinese multi-national oil and gas company listed on the New York and Hong Kong Stock Exchanges, whereby CNOOC subscribed for a 70% equity interest in PNG Energy and UMC Energy retained a 30% equity interest.

Pursuant to the agreements, and in consideration for the share subscription, CNOOC will be responsible for funding all exploration and appraisal expenditure in respect of the PPLs up to commercial development. Such expenditure will be repaid to CNOOC out of production revenues and off take of oil and gas once the assets of Gini Energy enter production, should such production occur. If exploration and appraisal work indicates the probable existence of commercial reservoirs of oil or gas in any part of the PPLs at the end of the exploration phase, the parties must each finance their pro-rata share of all expenditure required in respect of the development plan, either themselves or by procuring sufficient finance from a third party.

In addition, the agreements entitle CNOOC to appoint two directors to the boards of each of PNG Energy and Gini Energy, with the Company entitled to appoint one director to each board. With effect from entering the agreements, the PNG Energy Ltd group became an associate of the Company, accounted for under the equity method.

2D seismic acquisition and four initial wells are planned during the first four year term of the permits, two wells on-shore and two off-shore, at an estimated cost for the work programmes of circa $450 million. It is also likely that 3D seismic will be acquired over the most prospective leads in the offshore permits prior to drilling. (Note that this anticipated expenditure is a UMC Energy management estimate which has not yet been budgeted or approved by the PNG Energy Ltd Group; the expenditure actually incurred in due course would form part of CNOOC's non-recourse loan).

The onshore PPLs are adjacent to existing oil and new gas pipeline infrastructure recently built for PNG LNG Project - a $19 billion investment to supply major LNG customers in Asia, and which is anticipated to commence production in 2014.

Since March 2012, CNOOC has been conducting various technical studies and has been mobilising to conduct on-site exploration activities, including procurement of existing data and new seismic acquisition.

Separately, UMC Energy has engaged 3D-GEO Pty Limited ("3D-GEO"), a Melbourne based firm of consulting petroleum engineers, considered to be highly experienced with regard to Papua New Guinea petroleum structural and geological interpretation, to review the available geological data, identify leads and prospects, quantify any contingent resources and prospective resources and provide technical advice in regard to the permits.

In relation to PPL 378 (west), the Paua-1 well drilled in 1996 by BP is a declared discovery with gas encountered in the Toro sands and oil recovered from a 33 metre gross oil column in the Iagifu sands.

Independent expert assessment of the well logs, seismic data and geological structural modelling has provided the following estimated Contingent Resource and Prospective Resource values, prepared in accordance with Petroleum Resources Management System (PRMS) sponsored by the Society of Petroleum Engineers.

The following table presents the recoverable Contingent Resource values for the Paua Discovery.

*Note: MMbbls = million barrels of recoverable oil, BCF = billion standard cubic feet of recoverable gas

The 1C and 2C cases only consider hydrocarbon resources in the forelimb of the structure. It would be unusual for only the forelimb to be charged as depicted, but as the Paua-1 well only intersected this part of the Paua structure accordingly the estimates are based on this actual intersection data. The 3C cases consider charge in the backlimb of the structure, either gas or oil.

The prospectivity review of PPL378 (west) also identified Poro, an untested structure. Probabilistic volumes of potential resources calculated by Monte Carlo simulations have provided the following values within the permit:

The prospectivity review of PPL378 (east) identified two untested structures, Lead A and Lead B. Probabilistic volumes of potential resources calculated by Monte Carlo simulations have provided the following values within the permit:

In relation to PPL 405, the Wasuma-1 well drilled in 2010 by Oil Search Ltd encountered a 4.7 metre oil column in the Iagifu B sands within the Wasuma structure. Independent analysis of the well log and seismic data combined with geological modelling suggests the well may have been drilled in a poor location and the structure has an estimated potential for a significant recoverable oil Prospective Resource ranging from 7 MMbbls (P90) to 190 MMbbls (P10), with 30% attributable to UMC as detailed below. The Wasuma structure is located within the PPL405 permit held by Gini.

The prospectivity review of PPL405 has also identified three untested structures, Lead C, Warra Deep and Lead D. Probabilistic volumes of potential resources calculated by Monte Carlo simulations have provided the following values of these three untested leads within the permit:

Additional subsurface activities are presently being planned by the joint venture parties to further reduce uncertainties and develop the identified leads into drillable prospects. This includes selective reprocessing of existing 2D seismic data, new 2D seismic acquisition, detailed reviews of structural modelling and full reservoir engineering reviews for each lead.

3D-GEO was engaged to conduct a review of the offshore permits, including interpretation of the 2D data, regional reservoir and source rock studies, source generation timing and hydrocarbon migration studies utilizing proprietary Genesis and Trinity software packages to model the probability of hydrocarbon charge within trap timing, and the development of a leads inventory.

Lead mapping of the offshore permits has identified a number of potentially large structures, including Lead H in PPL375, where a phase reversal (or soft kick) was observed in the 2D seismic data in the interpreted Cretaceous reservoir horizon. This observation is often regarded as a direct

hydrocarbon indicator, or DHI, which may be indicative of a gas cap. Lead H is a fault block closure with up to 135 km2 of closure.

A number of leads have been identified across the two permits, many with closure at both Cretaceous and Miocene reservoir horizons. The seismic grid is presently too sparse across the offshore permits to have sufficient confidence in the structural mapping to elevate any of the leads to prospect status at this time. However, several large structures have been mapped with recoverable gas volumes within the permits estimated in the multi Tcf range (a mean of over 10Tcf for the five largest leads). Un-risked, probabilistic volume calculations of the potential resources have provided the following recoverable gas values of these five highest ranked untested leads within the permit:

De-risking of these leads will require acquisition of new seismic data and further interpretation and mapping. The development of the leads inventory was required so that the 2D seismic survey planned for 2013 can be optimally designed.

Madagascar Madagascar continues to experience a period of political upheaval and uncertainty. Despite the fact that the Company has not, in any way, been negatively affected by these events, it has resolved to take a cautious approach to exploration and accordingly has not conducted exploration activities during the 2012 financial year. The Company continues to monitor the situation. Given these circumstances, the Directors have resolved that it is appropriate to recognise an impairment adjustment of £1,925,000 (31 December 2011: £nil) against the carrying value of the intangible asset.

Financing The Company remains dependent on loan funds being made available to it by Natasa Mining Ltd to meet its working capital and other requirements.

C Kyriakou

Chairman

CONSOLIDATED INCOME STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2012

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2012

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2012

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2012

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2012

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2012

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012

1. General information

UMC Energy Plc is a company incorporated in England and Wales. The Company's registered office is First Floor, 10 Dover Street, London, W1S 4LQ. The registration number of the Company is 05331770.

The principal activity of the Group is the investment in, and exploration and development of natural resources projects, specifically in a petroleum exploration project in Papua New Guinea and a uranium exploration project in Madagascar.

The Group's principal activity is carried out in US dollars. The financial statements are presented in pounds sterling as this is the currency of the country (the UK) where the Company is incorporated and its ordinary shares admitted for trading.

2. Loss per share

Including share of associate's results

Loss per share has been calculated by dividing the loss for the year after taxation, including share of associate's results attributable to the equity holders of the parent company of £3,918,188 (31 December 2011: £542,635) by the weighted average number of shares in issue at the year end of 484,444,763 (31 December 2011: 245,759,831).

Excluding share of associate's results

Loss per share has been calculated by dividing the loss for the year after taxation, excluding share of associate's results including share of associate's results, attributable to the equity holders of the parent company of £3,909,881 (31 December 2011: £542,635) by the weighted average number of shares in issue at the year end of 484,444,763 (31 December 2011: 245,759,831).

3. Intangible assets - Group

The development expenditure relates to development of the uranium exploration project in the Morondava basin of Madagascar.

The licences relate to uranium exploration licences in the Morondava basin and the petroleum exploration project in Papua New Guinea.

The Morondava uranium project has yet to reach a stage of development where a determination of the technical feasibility or commercial viability can be assessed. In addition, as Madagascar is presently experiencing a period of political upheaval and uncertainty, the Company has resolved to take a cautious approach to exploration and accordingly has not conducted exploration activities during the current financial year and does not expect to undertake any material exploration activities in Madagascar whilst this period of uncertainty prevails. In these circumstances, whether there is any indication that the asset has been impaired is a matter of judgement, as is the determination of the quantum of any required impairment adjustment. The directors have resolved that it is not appropriate to capitalise any further expenditure on the intangible asset until circumstances change. The Directors have used their experience to conclude that an impairment adjustment of £1,925,000 is required in the current year (31 December 2011: £ nil).

In March 2012, the PNG Energy Group ceased to be controlled by the company and therefore, the exploration licences were transferred on dilution of the subsidiary. See note 11 for further information.

4. Investments in associated undertaking

On 26 March 2012, the Company entered agreements with CNOOC Australia Limited ("CNOOC"), a subsidiary of CNOOC Limited, the Chinese multi-national oil and gas company listed on the New York and Hong Kong Stock Exchanges, whereby CNOOC subscribed for a 70% equity interest in PNG Energy Limited with UMC Energy retaining a 30% equity interest.

As a result of this transaction, in March 2012 the PNG Energy group ceased to be controlled by the Company and became an equity accounted associate.

On 4 December 2012, the Company entered a deed with UMC Energy Ltd (incorporated in the British Virgin Islands (BVI)), an indirect wholly owned subsidiary of the Company, whereby it transferred its shares in PNG Energy Ltd to UMC Energy Ltd. At the same time, the company assigned the intellectual property rights pertaining to the assets owned by PNG Energy Ltd to UMC Energy Ltd.

As a result of this transaction, since December 2012 the Group has an equity holding in the following associate undertaking:

The country of incorporation of the associate undertaking is the British Virgin Islands and the principal place of business is Papua New Guinea.

The Papua New Guinea petroleum project has yet to reach a stage of development where a determination of the technical feasibility or commercial viability can be assessed. In these circumstances, whether there is any indication that the asset has been impaired is a matter of judgment, as is the determination of the quantum of any required impairment adjustment. The Directors have used their experience to conclude that no impairment adjustment is required in the current year.

Summarised results of the associate undertaking, PNG Energy Group, as translated into sterling are as follows:

5. Post balance sheet events

Since 1 January 2013, the Company has advanced a further US$237,939 (£157,226) to Uramad SA, for use on uranium exploration project development activities.

Since 1 January 2013, the Company has borrowed a further A$551,121 (£376,177) from Natasa Mining Ltd, for working capital purposes.

6. Publication of non statutory accounts

The financial information set out in this announcement does not constitute statutory accounts.

The financial information for the year ended 31 December 2012 has been extracted from the Group's statutory financial statements to that date upon which the auditors' opinion is modified on the basis of an emphasis of matter opinion on going concern and significant uncertainty.

7. Annual Report and Annual General Meeting

The Annual Report for the year ended 31 December 2012 will be available from the Company's website www.umc-energy.com today.

The annual general meeting of the Company has been convened for 10.00 a.m. on 26 June 2013 at First Floor, 10 Dover Street London W1S 4LQ

Enquiries:

Chrisilios Kyriakou, Chairman

Laurence Read, Corporate Development Officer

UMC Energy Plc

Telephone: +44(0) 20 7290 3102

Angela Hallett/ James Spinney

Strand Hanson Limited

Telephone: +44 (0) 20 7409 3494

Philip Haydn-Slater/Paul Dudley

HD Capital Partners LLP

Telephone: +44 (0) 20 3551 4870

Jerry Keen / Stephane Auton / Patrick Castle

Shore Capital Stockbrokers Limited

Joint Broker

Telephone: +44 (0)20 7408 4090