Range enters into Integrated Master Services Agreement

2 June 2014 ASX Code: RRS and AIM Code: RRL Range Resources Limited ("Range" or "the Company") Range enters into Integrated Master Services Agreement with LandOcean Range is pleased to announce that, further to the announcement on 22 April2014, the Company has entered into an Integrated Master Services Agreement withLandOcean Energy Services Co Ltd ("LandOcean") (SHE:300157). The agreementprovides Range with an extremely capable and technically sophisticatedpreferred services provider. In addition, Range and LandOcean have agreed afinancing package of up to US$50 million. Integrated Master Services Agreement According to the Integrated Master Services Agreement ("IMSA"), LandOcean willact as the preferred services contractor (subject to all tendering andprocurement rules) for Range for oilfield services including geoscience,engineering, procurement and construction. Services provided under the IMSAwill be agreed in individual purchase orders as the need for services arises.LandOcean will work for Range as a contractor on a "net cost plus" basis to beagreed in each Purchase Order. In addition, where services under a purchaseorder have been provided and have directly resulted in increased production forRange, LandOcean will be entitled to an incremental production bonus share ofRange's after costs and capital expenditure. This incremental production bonusstructure ensures LandOcean are incentivised to maximise production and cashflows for Range. The IMSA will last up to eight years and could cover a totalcontract value of up to US$400 million over this period. Optional Financing Package In addition to the services agreement LandOcean will also provide Range anoption to take up to US$50 million of financing. The financing is availableprimarily to pay for LandOcean's services but can be used for other purposes ifthe two companies agree. The US$50 million will be made available in tranches.The first US$20 million tranche will be subject to interest at 10% per annum,with first interest payment due on the first anniversary of drawdown. Capitalrepayments will start after two years and will be paid equally over the next 36months. The terms of additional tranches will be the subject of furtheragreements between the respective companies. First Purchase Order Under the IMSA, Range and LandOcean have entered into the first purchase orderto draw down US$5 million of services from LandOcean. These services include awide ranging geological and engineering study of secondary recovery projects(including waterflooding) in the Beach Marcelle, Morne Diablo and South Quarryfields in Trinidad. Commenting on today's announcement, Rory Scott Russell, CEO, said: "We are looking forward to working with LandOcean as our preferred oilfieldservices provider. LandOcean is one of China's largest private listed oilfieldservices businesses and brings extensive technical expertise both from asubsurface and engineering perspective. Range's ability to tap into suchexpertise is extremely important to our future success in Trinidad andelsewhere. I am also pleased that they will share in this future success via anincremental production bonus structure where both contractor and operator areincentivised to work together to maximise production. The financing packageprovided by LandOcean also shows their commitment to our projects, managementteam as well as to the partnership's future success. This is an importantmilestone on the delivery of the new beginning for Range." Yours faithfully Rory Scott RussellChief Executive Officer Contacts Buchanan (Financial PR - UK)Range Resources Limited Ben Romney / Helen ChanRory Scott Russell T: +44 (0) 20 7466 5000 E: [email protected] GMP Securities Europe LLP (Joint Cantor Fitzgerald(Nominated AdvisorandBroker) Joint Broker)Rob Collins / Liz Williamson David Porter / Tom Sheldon / JulianT: +44 (0) 207 647 2800 Erleigh (Corporate finance) / Richard Redmayne (Corporate broking) T: +44 (0) 20 7894 7000 PPR (Financial PR -Australia) Cowen Group(Principal American Liaison)David Tasker OTCQX International Market (U.S.)T: +61 (8) 9388 0944 Christopher Weekes / Stephen NashE: [email protected] T: +1 646 562 1000 Range Background Range Resources Limited is a dual listed (ASX:RRS; AIM:RRL) oil & gasexploration company with oil & gas interests in Trinidad; Puntland, Somalia;the Republic of Georgia; Guatemala; Texas, USA, and Colombia. * In Trinidad Range holds a 100% interest in holding companies with three onshore production licenses and a fully operational drilling subsidiary. Independently assessed Proved (P1) reserves in place of 17.5 MMBO with 25.2 MMBO of proved, probable and possible (3P) reserves and an additional 81 MMBO of unrisked prospective resources. Range also has a farm in with Niko Resources giving it exposure to circa 280,000 acres of prospective onshore and offshore acreage. * In the Republic of Georgia, Range holds a 45% farm-in interest in onshore blocks VIa and VIb, covering approx. 7,000sq.km. The Company is focussing on a revised development strategy that will focus on low-cost, shallow appraisal drilling of the contingent resources around the Tkibuli-Shaori ("Tkibuli") coal deposit, which straddles the central sections of the Company's two blocks, along with attracting potential farm-in partners across the license areas given the recent review performed across the licenses. * In Puntland, Range holds a 20% working interest in two licenses encompassing the highly prospective Dharoor and Nugaal valleys. The operator and 60% interest holder, Horn Petroleum Corp. (TSXV: HRN) has completed two exploration wells and will continue with a further seismic and well program over the next 12-18 months. * Range has the option to earn a 65% (option to move to 75%) interest in PUT-6 block in Putumayo Basin in Southern Colombia, which the Company is currently reviewing. * Range has taken a strategic stake in Citation Resources Limited (ASX: CTR) and Latin American Resources (LAR) which hold interest in two oil and gas development and exploration blocks in Guatemala with Canadian NI 51-101 certified proved plus probable (2P) reserves of 2.3 MMBBL (100% basis). Range has a direct and indirect 32% interest in the Guatemalan Project. Australia LondonGround Floor, 1 Havelock Street, West Suite 1A, Prince's House, 38 JermynPerth WA 6005, Australia Street, London SW1 6DNt:+61 8 9488 5220, f:+61 8 9324 2400 t:+44 (0)207 025 7040, f:+44 207 287e:[email protected] 8028 w: www.rangeresources.com.au