CORPORATION ON THE SETTING UP OF A JOINT VENTURE

The Board of Directors of Falcon Energy Group Limited (“

announce that the Company has entered into a preliminary agreement (“

Agreement

24 January 2013 in relation to the setting up of a joint venture company in Singapore

(“

PVDWSC is a Vietnam-based provider of oil and gas drilling services and is a subsidiary

of PetroVietnam.

Pursuant to the Preliminary Agreement, the Company and PVDWSC will use their good

faith efforts to discuss and conclude the definitive joint venture agreement.

The Company will keep shareholders informed if there is any material development by

making the appropriate announcement in compliance with the listing rules of the

Singapore Exchange Securities Trading Limited.

Shareholders and potential investors of the Company are advised to refrain from taking

any action in respect of their shares in the Company which may be prejudicial to their

interests and to exercise caution when dealing in the shares of the Company.

Save for the shareholding interests in the Company, none of the directors or substantial

shareholders of the Company has any interest, direct or indirect, in the transaction

contemplated under the Preliminary Agreement.

The transaction contemplated under the Preliminary Agreement is not expected to have

a material impact on the net tangible assets per share and earnings per share of the

Company for the financial year ending 31 March 2013.Company”) wishes toPreliminary”) with PetroVietnam Drilling & Well Service Corporation (“PVDWSC”) datedJV Company”) which may provide drilling services and associate services to clients.