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Aorere Resources Enters Agreement with Mosman Oil and Gas Limited

Dear Aorere Resources Shareholder,

The announcement below was released to NZX this morning.

Regards,

Chris Castle


Director
Aorere Resources Limited
+64 (21) 558 185
chris@widespread.co.nz

NZX Announcement

8 July 2013

Aorere Resources Enters Agreement with Mosman Oil and Gas Limited

Further to the market announcement of 22 April 2013, Aorere Resources is pleased to advise that it has today entered into a binding Farmin Agreement with Mosman Oil and Gas Limited (Mosman). The Farmin Agreement relates to Aorere’s wholly owned interest in Petroleum Exploration Permit 38526 over the Kotuku oil seeps near Greymouth (Permit).

Under the Farmin Agreement Aorere Resources will sell its entire interest in the Permit to Petroleum Creek Limited (PCL), currently a wholly owned subsidiary of Mosman. In consideration of the sale, Aorere will receive a 40% shareholding in PCL and Mosman has committed to fund the current work program for the Permit.

The Farmin Agreement is conditional upon the approval of New Zealand Petroleum and Minerals to the change in ownership of the Permit. It is expected that such approval will be obtained in approximately three months’ time.

Aorere will also grant a call option over its PCL shareholding to Mosman. Mosman can exercise the call option at any time up to 31 December 2013 and acquire Aorere’s PCL shares by paying $900,000 in cash or in Mosman shares and, in either case, granting Aorere a 2% royalty over all petroleum obtained from the Permit.

The Board of Aorere Resources looks forward to working with Mosman on the successful development of the Permit.

Contacts

Dene Biddlecombe

Chairman

Aorere Resources Limited

Phone: +64 27 230 0166

Email: dene@aorereresources.co.nz

John W Barr

Chairman

Mosman Oil and Gas Limited

Phone: +61 418 912 885

Email: jwbarr@mosmanoilandgas.com