Puntland - Exploration

Overview

Range holds a 20% working interest in two Production Sharing Agreements (PSAs) for the Nugaal and Dharoor Blocks. These concessions encompass two highly prospective hydrocarbon basins covering an area of approximately 40,000km².

In January 2012, Range together with its joint venture partners successfully spud the historic Shabeel 1 well in the Dharoor Valley, the first in a two well exploration program and the first exploration well in Puntland in over 25 years, with the Shabeel North well having been spud soon after the completion of the Shabeel 1 well.

Despite the non-commercial nature of the two wells the joint venture partners were extremely encourage that all of the critical elements exist for oil accumulations, namely a working petroleum system, good quality reservoirs and thick seal rocks, and have entered into the next exploration period in both the Nugaal and Dharoor Valley Production Sharing Contracts which carry a commitment to drill one well in each block within an additional 3 year period.

It is the intention that further seismic will also be acquired in the Dharoor Valley to delineate new structural prospects for the upcoming drilling campaign plus to hold discussions with the Puntland Government to gain access regarding drill ready prospects in the Nugaal Valley block. Dharoor and Nugaal Block Summaries*

Dharoor and Nugaal Block Summaries

*Source - Horn Petroleum Corp.

Please refer to independent NI 51-101 resource evaluation report effective June 30, 2011, posted on September 8, 2011 on www.sedar.com for full disclosure and resource definitions. Report is entitled "Evaluation of the Interests of Denovo Capital Corp. in Two Production Sharing Contracts in Dharoor Valley and Nugaal Valley Blocks, Somalia"

Geology (Source Horn Petroleum: www.hornpetroleum.com)

The Dharoor Valley Block is located in the Darin Basin which, prior to rifting, was along the same trend as the Masila Basin in Yemen when the Gondwana super-contingent began to split-up during the Jurassic time. The Nugaal Valley Block is located in the Nogal Basin which was also along trend of the Marib-Shabwa Basin in the Yemen side during the same time period. Many oil discoveries have been made in the Masila and Marib-Shabwa Basins in Yemen and these two basins are the main contributors to the current daily production rates of over 400,000 barrels of oil. These two blocks cover an area of over 9.7 million acres. With only 3 wells drilled in the two block areas, this is one of the least explored areas in Africa. Wells that were drilled on the identified structures encountered numerous oil shows; however, the wells Nogal-1 and Kalis-1 did not reach the main exploration target. In the early 1990's civil unrest in the country precipitated the pullout of the oil companies operating in the country at the time including Amoco, Chevron, Agip and Conoco.

Background information on Puntland

Somalia is situated in the most northeastern part of Africa; known as ‘the Horn of Africa’. The Democratic State of Puntland is located in the northeastern sector of Somalia and covers approximately 212,000km². The area is believed to have all the pre-requisites to become a major oil producing province whilst its other mineral potential is largely unexplored.

Somalia, and in particular Puntland, remain one of the last under-explored countries that have high potential for vast reserves of hydrocarbons. During the late 1980’s the State was divided into a number of concessions for oil exploration. Significant exploration was undertaken but this effectively ceased due to political instability that arose in 1991. The mineral potential has been investigated during the 2006 by Range’s team of geologists based in Bosasso on the northern coast .The geological work has identified the potential of large silver rich lead zinc deposits analgous to the Jabali deposit in southern Yemen.

Puntland is believed to have all the geological requirements to become a commercial oil-producing region. Somalia, and in particular Puntland, remains one of the last under-explored countries that has a high potential for considerable reserves of hydrocarbons which can be subsequently developed for the benefit of both the people of Puntland and Range Shareholders. The Company believes that through the generation of work and government royalties from hydrocarbon exploration and development numerous social and economic benefits will result.