Tangiers completes raising with further $4m placement

27 May 2014 TANGIERS PETROLEUM LIMITED Tangiers completes raising with a further $4M share placement Tangiers Petroleum Limited (ASX: TPT; AIM: TPET) ("Tangiers" or the "Company")is pleased to advise that it has raised $4 million, before costs, through theplacement of 25 million shares at 16c each to specified wholesale,institutional and sophisticated investors in Australia. The raising is inaddition to an initial $5 million share placement, also at 16c a share,announced by Tangiers earlier this month (see ASX release dated May 13, 2014). At the time of the initial placement the Company had planned to raise up to $10million. Cautious investor demand following Tangiers' prolonged period ofsuspension from share market trading resulted in the Company raising only $5million. Tangiers has since experienced strong, unsolicited demand from major investorsfor the remainder of the placement stock. The proceeds of the raising will beused to meet Tangiers' 33 per cent share of any costs incurred in excess of theUS$33m free carry limit provided by the Tarfaya Farm-Out Agreement for thedrilling of the TAO-1 well. Tangiers Managing Director Dave Wall said the Company had accepted theadditional funds because it believed the $4 million placing struck the rightbalance between being financially prudent and limiting shareholder dilution. "We believed from the outset that a raising of $8-$10 million was the idealamount given our possible outlays in relation to the well and our strategy toensure that shareholders had the maximum possible exposure to drillingsuccess." Mr Wall said. "Strong investor interest in the well has now enabled us to achieve thatinitial target and as a result we are in a strong cash position as we awaitspudding." Drilling of the TAO-1 well off the Moroccan Atlantic coast is on track tocommence in mid-late June (see ASX release dated May 22, 2014). Tangiers has a 25 percent participating interest in the Tarfaya Offshore Block,which is being operated by Galp Energia who has a 50 percent interest. Theremaining 25 percent interest is held by ONHYM (Morocco's National Office ofHydrocarbons and Mines), which is carried through the exploration phase. The TAO-1 well is located within a proven petroleum system, adjacent to the CapJuby oil discovery, and is targeting three stacked objectives. The $4 million placement, which will be completed in one tranche, is subject toshareholder approval at the Annual General Meeting of shareholders scheduled tobe held in early June. DJ Carmichael Pty Ltd, Foster Stockbroking Pty Ltd and BBY Limited are actingas Joint Lead Managers of the Placement. Application will be made for the new shares to be admitted to trading on boththe ASX and the AIM market. About Tangiers Petroleum: Tangiers Petroleum is an Australian-based oilexplorer with assets offshore Morocco in shallow water. The Company isscheduled to spud the high impact TAO-1 exploration well in mid-late June,targeting best estimate net resource potential of 190mmbbl* of oil (gross758mmbbl, TPT 25%, probablistic). Cautionary Statement: The estimated quantities of petroleum that may bepotentially recovered by the application of a future development project relateto undiscovered accumulations. These estimates have both an associated risk ofdiscovery and a risk of development. Further exploration, appraisal andevaluation is required to determine the existence of a significant quantity ofpotentially movable hydrocarbons. * Independently certified by NSAI as at 1 May 2011 - see NSAI Assessment ofProspective Oil Resources, market announcement dated 27 May 2011 The Prospective Resource estimates above have been reviewed by Mr BrentVillemarette who is an Executive Director of Tangiers. Mr Villemarette is areservoir engineer with over 30 years' experience and is a member of theSociety of Petroleum Engineers. Mr Villemarette has reviewed the informationand supporting documentation referred to in this announcement and considers theestimates to be fairly represented and consents to its release in the form andcontext in which it appears. ROBERT DALTONJoint Company Secretary Tangiers Petroleum LimitedLevel 2, 5 Ord StreetWest Perth WA 6005, AustraliaPh: + 61 8 9485 0990www.tangierspetroleum.com Contacts RFC Ambrian Limited As Nominated AdviserMr Oliver Morse / Ms Trinity McIntyre+61 8 9480 2500 As Corporate BrokerMr Charlie Cryer+44 20 3440 6800 Mr Ed Portman (Media and Investor Relations - United Kingdom)Tavistock Communications+44 20 7920 3150