Lender Discussions Update

This announcement has been determined to contain inside information

PREMIER OIL PLC

("Premier" or "the Company")

Lender discussions update

1 September 2016

As previously announced, Premier is in discussions with its lending group on the terms of its existing financial facilities. These continue to progress well. While these discussions continue Premier has been receiving monthly deferrals in respect of the tests of its financial covenants. Therefore, and as anticipated, the test for the 12 month period ending 31 August 2016 has been waived and replaced by a test for the 12 month period ending 30 September 2016. Premier expects to continue to receive monthly deferrals of the test of its financial covenants until negotiations conclude.