Tarfaya Farm-Out Agreement Update

1 May 2014 TANGIERS PETROLEUM LIMITED Completion of Tarfaya Farm-out Agreement paves way for spudding of TAO-1 well in June Tangiers Petroleum Limited (ASX: TPT; AIM: TPET) ("Tangiers" or the "Company")is pleased to announce that the TAO-1 well off the Moroccan coast is on trackto be spudded in June, with the Moroccan National Office of Hydrocarbons andMines providing its final approval relating to the farm-out agreement betweenTangiers and Galp Energia ("Galp"). The signing of the Amended and Updated Association Contract by the MoroccanNational Office of Hydrocarbons and Mines satisfies the final conditionprecedent under the Farm-out Agreement. Under the agreement, Galp is now due to reimburse Tangiers US$7.5 million forback costs. In addition, the US$3 million bank guarantee currently held inMorocco will be returned to Tangiers. These funds will help meet Tangiers' 33 per cent share of any costs incurred indrilling the TAO-1 well in excess of the US$33m allowed for under thefree-carry terms of the well. Tangiers Managing Director David Wall said the signing of the associationcontract marked the start of an exciting new chapter for the Company. "The TAO-1 well is a potential company-making opportunity so we are delightedthat the final approval has been granted and that the well is on track to bespudded next month," Mr Wall said. Tangiers has a 25 per cent stake in the Tarfaya Offshore Block. END 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 (Nominated Adviser)Mr Oliver Morse / Ms Trinity McIntyre+61 8 9480 2500 Mr Ed Portman (Media and Investor Relations - United Kingdom)Tavistock Communications+44 20 7920 3150