Withdrawal from Farm-in Agreement-Nordic Petroleum

Mercom Oil Sands Plc (AIM:

("Mercom" or "the Company")

Withdrawal from Farm-in Agreement with Nordic Petroleum

Further to the announcement made on 8 November 2012, in respect of the Farm-in Agreement with Nordic Petroleum SA (Nordic) for the acquisition of a 50% interest in four oil sand leases at Chard in Albert, Canada Sands., the Board of Mercom has been unable to accept the proposals made by the Board of Nordic, which in turn has rejected the counter proposals made by Mercom.

No further extension has been granted for the completion of the preconditions of the Farm-in Agreement and a as consequence Nordic has declared Mercom to be in breach of contract. The board of Mercom is taking legal advice and will make a further announcement to shareholders in due course.

-ENDS-

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