Extension of Puntland PSA's

17 January 2011

The Manager

Company Announcements

Australian Securities Exchange Limited

Level 6, 20 Bridge Street

Sydney NSW 2000

By e-lodgement

AFRICA OIL PROVIDES UPDATE ON PUNTLAND (SOMALIA) PROJECT


Range Resources Limited ("Range" or "the Company") is pleased to announce that
together with its joint venture partners, Africa Oil Corp and Lion Energy Corp,
it has entered into amending agreements with the Government of Puntland, in
respect of the production sharing agreements ("PSAs") for the Dharoor Valley
Exploration Area and the Nugaal Valley Exploration Area.

As announced by the joint venture operator, Africa Oil Corp. ("Africa Oil"),
the key amendments were as follows:

  * Under the PSAs, as amended, the First Exploration Agreement has been
    extended for a further 12 months, from January 17, 2011 to January 17,
    2012. 
   
  * Under the amended PSAs, a minimum of one exploratory well must be spudded
    in the Dharoor Valley Exploration Area by July 27, 2011.  A second
    exploratory well is required to be spudded in the Nugaal Valley Exploration
    Area or, at the option of Africa Oil (as operator), in the Dharoor Valley
    Exploration Area, by September 27, 2011.
   
  * In addition, the proposed farmout to Red Emperor of a 20% interest in each
    of the PSAs, previously announced on June 15, 2010, has been approved by
    the Government.  Under the Red Emperor farmout Red Emperor is committed to
    pay a disproportionate share of the costs related to the joint venture's
    drilling commitments in the First Exploration Period.
   
A full copy of Africa Oil's release will be available on their website.

Yours faithfully


Peter Landau
Executive Director

Contacts

Range Resources
Peter Landau
Tel : [phone]
Em: [e-mail]

Australia                                                   London

PPR                                                         Tavistock Communications
David Tasker                                                Jonathan Charles
Tel: [phone]                                      Tel: + 44 (0) 207 920 3150
Em: [e-mail]                                 Em: [e-mail]

RFC Corporate Finance (Nominated Advisor)                   Old Park Lane Capital (Broker)
Stuart Laing                                                Michael Parnes
Tel: [phone]                                      Tel: [phone]

Range Background

Range Resources is a dual listed (ASX: RRS; AIM: RRL) oil & gas exploration
company with oil & gas interests in the frontier state of Puntland, Somalia,
the Republic of Georgia and Texas, USA.

  * Range holds a 25% interest in the initial Smith #1 well and 20% interest in
    further wells on the North Chapman Ranch project, Texas. The project area
    encompasses approximately 1,680 acres in one of the most prolific oil and
    gas producing trends in the State of Texas. Drilling of the first well has
    resulted in a commercial discovery with independently assessed gross
    recoverable reserves in place of 240 Bcf of natural gas, 18 mmbbls of oil
    and 17 mmbbls of natural gas liquids (mean 100% basis).
   
  * Range holds a 21.75% interest in the East Texas Cotton Valley Prospect in
    Red River County, Texas, USA, with the prospect's project area encompasses
    approximately 1,570 acres encompassing a recent oil discovery. The prospect
    has independently assessed gross recoverable reserves in place of 5.4
    Mmbbls of oil (mean 100% basis).
   
  * In Puntland, Range holds a 20% working interest in two licences
    encompassing the highly prospective Dharoor and Nugaal valleys with plans
    to drill two wells (TSXV:AOI) - 45% Operator, in 2011.
   
  * In the Republic of Georgia, Range holds a 50% farm-in interest in onshore
    blocks VIa and VIb, covering approx. 7,000sq.km. Currently, Range has
    recently completed a 410km 2D seismic program with independent consultants
    RPS Energy identifying 68 potential structures containing and estimated
    2.045 billion barrels of undiscovered oil-in-place (mean 100% basis).
   
  * In Trinidad Range has entered into a HOA to acquire a 10% interest in
    holding companies with three onshore production licences. The licences
    areas have independently assessed gross recoverable P2 reserves in place of
    4.8MMbls (mean 100% basis).
   
The reserves estimate for the North Chapman Ranch Project and East Texas Cotton
Valley has been formulated by Lonquist & Co LLC who are Petroleum Consultants
based in the United States with offices in Houston and Austin. Lonquist
provides specific engineering services to the oil and gas exploration and
production industry, and consults on all aspects of petroleum geology and
engineering for both domestic and international projects and companies.
Lonquist & Co LLC have consented in writing to the reference to them in this
announcement and to the estimates of oil, natural gas and natural gas liquids
provided. These estimates were formulated in accordance with the guidelines of
the Society of Petroleum Engineers ("SPE"). The SPE Reserve definitions can be
found on the SPE website at www.spe.org.

The reserves estimates for the 3 Trinidad blocks referred above have been
formulated by Forrest A. Garb & Associates, Inc. (FGA). FGA is an international
petroleum engineering and geologic consulting firm staffed by experienced
engineers and geologists. Collectively FGA staff has more than a century of
world–wide experience. FGA have consented in writing to the reference to them
in this announcement and to the estimates of oil and natural gas liquids
provided. The definitions for oil and gas reserves are in accordance with SEC
Regulation S–X.

RPS Group is an International Petroleum Consulting Firm with offices worldwide,
who specialise in the evaluation of resources, and have consented to the
information with regards to the Company's Georgian interests in the form and
context that they appear. These estimates were formulated in accordance with
the guidelines of the Society of Petroleum Engineers ("SPE").

ABN 88 002 522 009
www.rangeresources.com.au


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Australia

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