ADVENT ENERGY UNCONVENTIONAL SHALE GAS AND CONVENTIONAL GAS PROSPECTIVITY IN ONSHORE BONAPARTE BASIN

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1 23 August 2012 Companies Announcement Office Australian Securities Exchange Limited 10th Floor, 20 Bond Street SYDNEY NSW 2000 ADVENT ENERGY UNCONVENTIONAL SHALE GAS AND CONVENTIONAL GAS PROSPECTIVITY IN ONSHORE BONAPARTE BASIN MEC Resources Limited (ASX: MMR) is pleased to provide the following detail in relation to its investee company Advent Energy Ltd ( Advent ) and the prospectivity of Advent s unconventional and conventional oil and gas assets in the onshore Bonaparte Basin (north-eastern Western Australia and north-western Northern Territory). Advent s major shareholders remain MEC Resources, BPH Energy (ASX: BPH), Talbot Group and Grandbridge (ASX: GBA). Unconventional shale gas Advent has 100% interests in EP386 and RL1 which cover 2,568 km 2 and 166 km 2 respectively in the onshore Bonaparte Basin. The Bonaparte Basin covers adjacent areas of the Western Australian and Northern Territory border. Immediately within the basin is the Ord Phase Two project, in which the Australian and Western Australian Governments are spending over $300m to develop road works and infrastructure. Geoscience Australia has reported on the Bonaparte Basin, noting the source pod for hydrocarbons as being in the Carlton sub basin in the onshore portion of the southern Bonaparte. The report shows that the postulated higher quality source rocks contained within the Carlton sub basin lie substantially within Advent s permits of EP386 and RL1. Beach Energy has further reported on Bonaparte and its shale gas prospectivity. Advent s permits are immediately adjacent to (EP386) and surrounded by (RL1) the Northern Territory interests of Beach Energy (ASX: BPT). Beach Energy's focus from 2007 has been to find the best shale acreage in Australia (see BPT ASX release of 12 October 2011) with particular attention given to underexplored and highly prospective areas and unconventional areas with infrastructure close to markets. The following statement also appeared in Resources Rising Stars in November 2011 in relation to Beach managing director Mr R Nelson: Having noticed the growth in shale gas in the US four years ago, Nelson and his team began scouring Australia for the most prospective shale gas acreage. Beach Energy has identified key technical contributors to success in shale areas, with shale thickness as a key. Bonaparte has shale thicknesses of over 1000m. As previously announced to the market (ASX release 20 August 2012) Beach Energy is intending to conduct an Airborne Gravity and Magnetic survey over a large area of the onshore Bonaparte Basin including the areas held by Advent.

2 The survey will generate data over RL1, a portion of EP386 and an intervening space. An agreement has been entered into with regards to sharing this data. Advent has identified significant shale areas in EP386 and RL1, as disclosed in several of MEC Resources ASX announcements, and is continuing to assess these resources. A study released by Advent indicates significant potential upside in prospective shale gas resources with estimated unrisked original gas in place (OGIP) in the range from 19 TCF to 141 TCF for the 100% Advent owned EP386 and RL1. The thickness of the prospective shale gas play varies from 300m to over 1500m. Using comparative data from a paper from the WA Dept of Mines and Petroleum in 2011, Advent calculated a risked recoverable of 9.6 TCF for the Bonaparte permits. Conventional natural gas Advent s conventional gas assets within EP386 and RL1 include the Weaber Gas Field and the Waggon Creek and Vienta gas discoveries. There have been four conventional gas discovery wells drilled in Advent s 100% owned and operated Bonaparte Basin permits of EP386 and RL1. In EP386 the three main discoveries made so far are Vienta, Waggon Creek and Bonaparte and in RL1 in the Northern Territory, Weaber. Other wells drilled have been technical successes for both gas and oil. During the testing of wells in EP386 and RL1, gas flows of up to 4.5 MMscf/d have been recorded. Advent recently announced an independently assessed contingent resource for the Weaber Gas Field of 45 Bcf (3C). First production in Advent s 100% owned areas is expected to come from the proven onshore Bonaparte Basin (EP 386) as a result of the Federal and State Government s $300 million infrastructure investment in the adjacent Ord River Irrigation Area (Phase 2) and a number of mining projects. Advent recently released the results of an independent market study showing the Waggon Creek and Vienta gas discoveries are the subject of current appraisal activities for the anticipated commercialisation and supply of natural gas to the local market with possible sales of up to 12 TJ/day from a mini LNG facility. The local market includes the townsites of Kununurra and Wyndham, currently powered by hydro electricity and diesel. Resources projects such as the Sorby Hills Pb/Zn/Ag mine, the Argyle diamond mine and numerous other minerals projects are within trucking distance for compressed natural gas (or LNG) from Advent s EP386 and RL1 conventional gas accumulations. Yours sincerely, David Breeze Executive Director MEC Resources Ltd PO Box 317 North Perth WA 6906 Tel: About MEC Resources ASX-listed MEC Resources (ASX: MMR) invests into exploration companies targeting potentially large energy and mineral resources. The Company has been registered by the Australian Federal Government as a Pooled Development Fund enabling most MEC shareholders to receive tax free capital gains on their shares and tax free dividends.

3 About Advent Energy Advent Energy Ltd is an unlisted oil and gas exploration company held by major shareholders MEC Resources (ASX: MMR), BPH Energy (ASX: BPH), Grandbridge (ASX: GBA) and Talbot Group Investments. Advent holds a strong portfolio of near term development and exploration assets spanning highly prospective acreage onshore and offshore Australia in proven petroleum basins. Advent Energy s asset base also incorporates both conventional and unconventional petroleum targets. Notes: In accordance with ASX listing requirements, the geological information supplied in this report has been based on information provided by geologists who have had in excess of five years experience in their field of activity. MEC Resources is an exploration investment company and relies on the resource and ore reserve statements compiled by the companies in which it invests. All Mineral Resource and Reserve Statements have been previously published by the companies concerned. Summary data has been used. Unless otherwise stated all resource and reserve reporting complies with the relevant standards. Resources quoted in this report equal 100% of the resource and do not represent MEC s investees equity share.

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5 ASX Release 14 October, 2011

6 ASX Release 14 October, 2011

7 ASX Release 14 October, 2011

8 ASX Release 20 August, 2012

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11 Extract from Beach Energy Resource and Energy Symposium RegNelson 22 May, 2012

12 Extract from Beach Energy Resource and Energy Symposium RegNelson 22 May, 2012

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14 Extract from Beach Energy Investor Morning 13 October, 2011

15 Extract from Beach Energy Investor Morning 13 October, 2011