1. Argos Resources Limited
October 2010 1

2. History of Argos Resources
Management involved in the Falklands for 22 years
Incorporated in the Falklands in 1995
Awarded PL001 license in 1996 as part of the
Amerada Hess consortium
Acquired 1,400km of 2D seismic data in 1997
Two exploration wells on licence in 1998 encountered
oil shows indicating a working hydrocarbon system
Consortium transferred their 95% interest in the license to Argos by 2004, resulting in Argos owning 100%
Phase 1 of the license continued to November 2008
Phase 2 approved to November 2015

3. The North Falkland Basin Licences and Prospects

4. 1998 Drilling History
6 wells drilled in 1998, all in the northern half of the North Falkland Basin
5 of the 6 wells encountered oil and gas shows. Both Argos wells had oil shows
The 2 wells in the adjacent Shell licence (now operated by Rockhopper), recovered 27o API oil to surface
from one well and recorded strong gas kicks from the other (Johnson discovery)
Well Results & Subsequent Conclusions
All encountered a thick, rich source rock between 80m and 1,000m thick
World class oil source rock
Higher organic carbon content than North Sea oil source rocks
Lower half of source rock mature for oil generation
Estimate over 70 billion barrels of oil generated
No prospects tested within or below source rock
Potentially a bypassed major oil province

5. Main Structural Elements Northern North Falkland Basin
WEST
ARGOS
ROCKHOPPER
EAST
Seabed
Post-rift sag
Late post-rift
Middle post-rift
Early post-rift
Late syn-rift
Early syn-rift
Apollo
Demeter
Zeus
Hermes
Boreas
Morpheus
Johnson
Sea Lion
Pre-rift
Approx 35km 5

6. 2010 Drilling Campaign 2 5 1 4 Slot Prospect Timing (2010)
G.P.R.R.* (Mmbo)
Operator
Result 1
Liz
Feb
281
Desire
Non commercial gas discovery 2
Sea Lion
April
170**
Rockhopper
Oil discovery 3
Toroa
May
1,700
Falkland O&G
P&A Dry Hole 4
Ernest
July
156
P&A Dry Hole 5
September
Tested bopd 6
Rachel
October
249
Sidetracking
* Gross Prospective Recoverable
Resources
** Updated estimate 2 4 5 1

7. Argos 2D Prospect Summary

8. Stratigraphic Prospects
The Value of 3D Seismic
Stratigraphic Prospects
Gross Mean
Speculative Resource
(Mmbo)
Pre-3D Post-3D
Desire Nil
Rockhopper
Argos * TBD
* This represents the Boreas prospect

9. Leads to be Matured with 3D Seismic Eastern Graben, Leads 1, 2 & Morpheus
Apollo
Glaucos
Istros
Demeter
Zeus
Boreas
Morpheus
Hermes
Johnson
10km
Rockhopper
Sea Lion
PL 001
PL 032
Lead 2
Lead 1
Chronos
W.Graben

10. Forward Plan
Q4 2010/ Q1 2011
Q2 2011
Q3 2011
Q4 2011/ 2012
Process / interpret
3D seismic data
Report on prospect inventory
Acquire 3D seismic
High-grade drilling targets, design well, submit environmental impact statement
Drilling campaign commences

11. Summary
An active petroleum system in the North Falkland Basin now proven
First 2 wells in 2010 drilling campaign are discoveries
Liz well encountered 3 separate oil and gas zones, but poor reservoirs
Sea Lion is a significant oil discovery close to PL001 in the adjacent license
The Directors believe Sea Lion is potentially world class in size, and extremely valuable in low tax regime
At least 4 more wells to be drilled by RKH and DES in the current campaign, further de-risking Argos licence
A 3D seismic programme in PL001 will improve detail on existing prospects, and should identify new prospects
Contract signed for MV Polarcus Asima, a state-of- the-art vessel, to acquire a 3D seismic survey over all of PL001, commencing by early January 2011
Experienced management team with 22 year history in the Falklands with unrivalled local knowledge and presence

12. MV Polarcus Asima 12 12