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Tower Resources Reaches Agreement With Neptune Petroleum On Uganda Project - Quick Facts

(RTTNews) - Tower Resources plc (TRP.L) Friday said its subsidiary Neptune Petroleum (Uganda) Ltd., has reached agreement with Global Petroleum Ltd. whereby Global will have a continuing option to participate in the Uganda project whilst having no current obligation to contribute to ongoing expenditure. The decision followed the announcements of December 22, 2008 and November 9, 2009.

The agreement provides Global with a continuing right to convert its investment in the project to date into a 25% legal and beneficial interest in Uganda Licence EA5. In addition, Global shall have the right to elect to participate until such time that Tower has obtained a firm offer of funds, from a third party or through its own fund-raising efforts, to fund any material operation in respect of the Licence.

Global will be required to reimburse Tower for 25% of ongoing costs during the option period should it elect to participate and, in the event of third party funding, Global will dilute proportionately with Tower.

TRP.L shares are currently trading at 1.67 pence, up 0.00 pence or 0.12% on the LSE.