11 January 2013

Jill Hewitt

Adviser Listing (Perth)

ASX Compliance Pty Ltd

Level 8, Exchange Plaza

2 The Esplanade

PERTH WA 6000

Dear Jill,

RESPONSE TO PRICE AND VOLUME QUERY

In response to your letter dated 11 January 2013, we provide the following information:

1. The Company is not aware of any information concerning it that has not been announced to the market which, if known, could be an explanation for recent trading in the securities of the Company.

2. Not applicable

3. FAR Limited has interests in two blocks in offshore Kenya. We understand Anadarko Petroleum Corporation a US Listed company has recently spudded a well in offshore Kenya. This may be a reason for the price and volume change in the Securities of the Company.

4. I can confirm that the Company is compliance with the listing rules and, in particular, listing rule 3.1.

Yours sincerely,

For and on behalf of FAR Limited

Peter Thiessen

Company Secretary

20130111 - Price and volume query

11.JAN.2013 9:23 ASX PERTH N0.176 P.i/2

-ASX

ASX Compliance Pty Limited ABN 26 087 780 489 leve!8 Exchange Plaza

2 The

Esplanade

PERTH WA 6000

GPO Box 0187

PERTH WA 6840

Telephone 61 8 9224 oooo Facsimile 61 8 9221 2020 www.asx.com.au

11 January 2013

Mr P Thiessen Company Secretary FAR Limìted

Level17, 530 Collins Street

MELBOURNE VIC 3000

By Facsimile: 03 9620 5200

DearPeter

FAR L.lmited (the "Company"}

PRICE ANO VOL.UME QUERY

We have noted a change in the prtce ofthe Company's securities from 3.4 cents on 10 January 2013 to an intra day high of 4.3 cents today. We have arso noted a significant increase in the volume of trading in the securities over this period.

In light of the price and volume change,please respond to each of the fullowing questions.

1. ls the Company aware of any information concerning it that has not been announced which, if known, could be an explanation for recent trading in the securities of the Company?

Please note that as recent trading in the Company's securities could indicate that information has ceased to be confidential, the Company is unable !o rely on the exceptions to listing rule 3.1 contained in listing rule 3.1A when answering this question.

2. lf the answer to questlon 1 is yes, can an announcement be made immediately? lf noi, Why not and When is it expected !hat an announcement will be made?

Please note, if the answer to question 1is yes and an announcement canna!be made immediately, you need to contaci us to discuss this and you need to considera trading hall(see below).

3. Js there any o!her explanation that the Company may have for the price and volume change in the securities of the Company?

4. Please confirm that the Company is in compliance with the listing rules and,in particurar,listing rure 3.1.

Your response shou!d be senito me by ellJail on_ mr.hewitt@asx.com.au or by facsimile number (08} 9221 2020. lt should noibe senita the Market Announcemenfs Office.

11.JAN.2013 9:23 ASX PERTH N0.176 P.2/2

Unless the information is required immediately under listing rule 3.1, a response is requested as soon as possible and, in anyevenl, not laterthan 11.00 am (W.S.T) on Friday 11 January 2013.
· Under listing rule 18.7A, a copy of this query and your response will be released to the market, so your response should be in a suitable form and separately address each of the questions asked. lf you have any queries or concerns, please contact me immediately.
Llstlng rule 3.1
Usting rule 3.1 requires an entity to give ASX immediately any information concerning it that a reasonable person would expect to have a materia!effect an the price or value of the entity's securìties. The exceptions to this requirement are set aut in listing rule 3.1A.
In responding to this letter you should consult listing rule 3,1 and Guidance Note 8 - Continuous Disclasure; listing rule

3.1.

lf the informatlon requested by this letter is information required to be given to ASX under listing rule 3.1 your obligation is to disclose the information immediately.
Your responsibility under lisfing rule 3.1 is not confined to.or necessarily satisfìed by, answering the questions se!out in this Iettar.
Tradlng halt
lf you are unable to respond by the time requested, or if the answer to question 1 is yes and an announcement cannot be made immedìately, you should considera request fora trading halt in the Company's securities. As set aut in listlng rule 17.1 and Guidance Note 16- Trading Halts we may gran!a trading halt at your request. We may require the request to be in writing. We are not required to act on your request. Yau must tell us each ofthe follawing.
• The reasons far the trading hait.
• How long yau want the trading halt to Jast.
• The event you expect to happen that will end the trading hall.
• That you are not aware of any reason why the trading hai!should not be granted.
• Any other information necessary to inform the market about the trading halL or that we ask for.
The trading hallcanna!extend past the commencement of norma! trading an the second day afterthe day on which it is granted. lf a trading halt is requested and granted and you are stili unable to reply to this Jetter before the commencement of trading, suspension from quotation would normally be imposed by us from the commencement of trading if not previously requested by yau. The same applies if you have requested a trading hallbecause you are unable to release informatian to the mari lfyou have any queries regarding any ofthe above,please contacime on 9224 0013.
Yours sincerely,

Jill Hewitt

Senior Adviser, Listlngs Compliance (Perthl

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