Lender Discussions Update

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PREMIER OIL PLC

("Premier" or "the Company")

Lender discussions update

1 August 2016

Premier's lending group has agreed to a further deferral of the test of Premier's financial covenants while discussions around the Company's existing debt arrangements continue. The test for the 12 month period ending 31 July 2016 will now be waived and replaced by a test for the 12 month period ending 31 August 2016.

As previously announced, negotiations continue to progress well with agreement of terms targeted for during this quarter. Further deferral of the covenant test date will be sought if required.