Joint Venture Agreement On Georgian CBM Project

18 February 2013


The Manager
Company Announcements
Australian Securities Exchange Limited
Level 6, 20 Bridge Street
Sydney NSW 2000


By e-lodgement

JOINT VENTURE AGREEMENT ON GEORGIAN CBM PROJECT

Highlights:

- Agreement reached on the joint development of the Coal Bed
  Methane ("CBM") and conventional gas potential around the Tkibuli-Shaori Coal
  Field with Georgian Industrial Group ("GIG");

- Tkibuli Project has estimated Contingent Resources of
  approximately 400 bcf of CBM gas (mean 100% basis);

- GIG is the largest industrial holding company in Georgia;

- The fast-track assessment and development program is designed for
  gas production and sales to potentially begin within 18 months;

- GIG to purchase all gas produced on a take or pay arrangements;
  and

- Pilot project proposal to be predominantly debt financed,
  reducing immediate financial commitments for Range.

Range Resources Limited ("Range" or "the Company") is pleased to
announce that the Company, along with its joint venture partners, Strait Oil
and Gas UK Limited ("Strait") and Red Emperor Resources Limited ("Red
Emperor") (together "the Consortium") have executed a heads of agreement with
the Georgian Industrial Group ("GIG") with respect to the joint development of
the Coal Bed Methane project (CBM) and conventional potential around the
Tkibuli–Shaori Coal Field ("Tkibuli") in the Republic of Georgia.

Terms of Agreement

GIG and the Consortium will jointly establish a Development Company
on a 50:50 basis. The Development Company will be commencing feasibility and
technical studies, followed by an initial three to four well pilot project.
The appraisal / pilot production wells will be drilled first to clarify flow
rates and other key parameters including optimum well construction /
completion strategy, well spacing and water treatment, prior to full scale
development. Based on the previous ARI study it is planned to execute 6 CBM
wells per annum that are forecast to produce between 0.3-0.5 mmcf per well per
day, which over a short period of time (ie. 3+ years) are projected to build
to a significant production base for the joint venture that will enable
further expansion of the CBM project.

The initial pilot project will focus on appraising targets already
venting methane, thus ensuring a higher chance of success. The work programme
is anticipated to commence in the second half of 2013 and will be
predominantly debt financed, resulting in limited financial commitments for
Range moving forward. New wells will target horizons at depths between 500 and
2,000 metres and can be drilled within 45 days. The fast-track program is
designed to allow potential gas production and sales to begin within 18 months
given the existing infrastructure and logistics. GIG have agreed a take or pay
arrangement for all gas produced by the Development Company at a 5% discount
to a regional indexed price less transportation, removing the monetization
risk so often faced with prospective CBM projects. Over the last few years
regional prices have averaged between US$8 - US$10 per Mcf.

It is the intention of the Consortium to ensure that the first well
of the pilot program counts as the commitment well with respect to retaining
Block VIb.

Tkibuli Project Overview

Tkibuli has been estimated by Advanced Resources International to
contain Contingent Resources (mean) of approximately 0.4 trillion cubic feet
("tcf") of CBM gas (Range's attributable 40% interest is 0.16 tcf). Sand
horizons have also been identified around the coal beds, which could add
additional, conventional hydrocarbon resources to those estimated for CBM at
Tkibuli alone. Over 400 exploration and non-hydrocarbon wells have been
drilled in the Tkibuli area, many encountering hydrocarbons and one producing
gas for over 35 years.

CBM has become an increasingly important source of energy around the world and
production is well established in the US, Australia and China. Access to
market is key to commercialisation and, although major pipelines transect the
country, Georgia remains almost entirely dependent on imports of foreign
natural gas. CBM production from Tkibuli, therefore, could immediately be fed
into the local energy market.

Georgia Industrial Group Partnership

The Georgian Industrial Group was established in 2006 and has
extensively invested in the local economy and continues to support prospective
businesses. GIG operates the 200MW gas-fired power station located in
Gardabani, as well as importing 25% of gas currently used in Georgia. The
power station currently does not use any gas sourced locally in Georgia.

GIG is the largest holding company within Georgia and embraces a
number of subsidiary companies operating in the energy sector, acquiring and
processing of natural resources, production of building materials, logistics
service and real estate development.

GIG's operations are concentrated on the acquiring and processing
of the Country's resources, which in turn, fosters the long-term development
and success of Georgian industries.

Executive Director Peter Landau commented:

 "This is a major opportunity for the company and the significance
of the project should not be understated. The Partnership with the Georgian
Industrial Group, the largest industrial and holding company within Georgia,
is a milestone towards establishing itself in a country that still remains
almost entirely dependent on imports of foreign natural gas. The existence of
take or pay arrangements in place for all gas produced, removes the
monetization risk associated with the project. The ability to finance the
project through debt further underpins the proposition, by removing any
immediate financial commitments to Range. We believe that the deal has huge
potential for the company in the next three to five years as the production
base grows, and will generate significant revenues for the Company. The joint
venture compliments Range's current focus on production growth, whilst
ensuring its operational and financial capabilities remain with Trinidad."


Yours faithfully

Peter Landau
Executive Director


Contacts

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

RFC Ambrian Limited (Nominated Advisor)            Old Park Lane Capital (Joint Broker)
Stuart Laing                                       Michael Parnes
Tel: [phone]                             Tel: [phone]

Fox-Davies Capital Limited                         GMP Securities Europe LLP (Joint Broker)
Daniel Fox-Davies / Richard Hail                   James Pope / Chris Beltgens
Tel: [phone]                          Tel: [phone]

PPR (Australia)
David Tasker
Tel: [phone]
Em: [e-mail]

Dahlman Rose & Company (Principal American Liaison)
OTCQX International Market (U.S.)
Christopher Weekes / Stephen Nash
Tel: [phone]


Range Background

Range Resources Limited 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, Texas, USA, Trinidad and Colombia.

- In Trinidad Range holds a 100% interest in holding companies with
three onshore production licenses and fully operational drilling subsidiary.
Independently assessed Proved (P1) reserves in place of 17.5 MMbls with 25.2
MMbls of proved, probable and possible (3P) reserves and an additional 81
MMbls of unrisked best estimate prospective resources.

- In the Republic of Georgia, Range holds a 40% farm-in interest in
onshore blocks VIa and VIb, covering approx. 7,000sq.km. Range completed a
410km 2D seismic program with independent consultants RPS Energy identifying
68 potential structures containing an estimated 2 billion barrels of
undiscovered oil-in-place (on a mean 100% basis) with the first (Mukhiani-1)
exploration well having spudded in July in 2011. The Company is focussing on a
revised development strategy that will focus on low-cost, shallow appraisal
drilling of the contingent resources around the Tkibuli-Shaori ("Tkibuli")
coal deposit, which straddles the central sections of the Company's two
blocks.

- In Puntland, Range holds a 20% working interest in two licenses
encompassing the highly prospective Dharoor and Nugaal valleys. The operator
and 60% interest holder, Horn Petroleum Corp. (TSXV:HRN) has completed two
exploration wells and will continue with a further seismic and well program
over the next 12-18 months.

- Range holds a 25% interest in the initial Smith #1 well and a 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. Independently assessed 3P
reserves in place (on a 100% basis) of 228 Bcf of natural gas, 18 mmbbls of
oil and 17 mmbbls of natural gas liquids.

- Range holds a 21.75% interest in the East Texas Cotton Valley
Prospect in Red River County, Texas, USA, where the prospect's project area
encompasses approximately 1,570 acres encompassing a recent oil discovery. The
prospect has independently assessed 3P reserves in place (on a 100% basis) of
3.3mmbbls of oil.

- Range is earning a 65% (option to move to 75%) interest in the
highly prospective PUT 6 and PUT 7 licences in Putumayo Basin in Southern
Colombia. The Company will undertake a 350km2 3D seismic program across the
two licences and drill one well per licence, as well as looking to re-enter a
previously suspended well that had a significant historical reserve estimate.

- Range has taken a strategic stake (19.9%) in Citation Resources
Limited (ASX: CTR) which holds a 70% interest in Latin American Resources
(LAR). LAR holds an 80-100% interest in two oil and gas development and
exploration blocks in Guatemala with Canadian NI 51-101 certified proved plus
probable (2P) reserves of 2.3 MMBBL (100% basis). Range also holds a 10%
interest in LAR.

Table of Reserves and Resources

Detailed below are the estimated reserves for the Range project
portfolio.

All figures in       Gross Oil Reserves  Range's    Net Attributable
MMboe
Project               1P      2P    3P   Interest  1P      2P       3P     Operator
Oil & NGL
Texas - NCR *        16.4    25.2  35.3   20-25%  2.2      3.4     4.8    Western Gulf
Texas - ETCV          1.0    1.6    3.3    22%    0.2      0.3     0.6   Crest Resources
Trinidad             17.5    20.2  25.2    100%   17.5    20.2     25.2       Range
Guatemala             **    2.3**   **    21-24%   **  0.48-0.55**  **    Latin American
                                                                            Resources
Total Oil & Liquids  34.9    47.0  63.8           19.9    21.3     28.9
Gas Reserves
Texas - NCR *        106.0  162.7   228   20-25%  11.7    18.1     25.4    Western Gulf
Total Gas Reserves   106.0  162.7   228           11.7    18.1     25.4


* Reserves attributable to Range's interest in the North Chapman
Ranch asset, which are net of government and overriding royalties as described
in the Forrest Garb report.

** The reserves estimate for the Guatemalan Blocks in which LAR
(and CTR) have an interest in is as reported by CTR. CTR has not reported 1P
and 3P estimates, but Range is seeking such information from CTR for future
reporting purposes.

Detailed below are the estimated resources and oil-in-place
delineated across Range's portfolio of project interests.

All figures in       Gross Oil Resources  Range's    Net Attributable
MMboe
Project              Low    Best/   High  Interest  Low     Best/   High    Operator
                             Mean                           Mean
Prospective
Resources
Trinidad             8.1     40.5   81.0    100%    8.1     40.5    81.0     Range
Total Prospective    8.1     40.5   81.0            8.1     40.5    81.0
Resources
Undiscovered
Oil-In-Place
Puntland              -     16,000    -     20%      -      3,200    -   Horn Petroleum
Georgia               -     2,045     -     40%      -       818     -    Strait Oil &
                                                                              Gas
Colombia              -      7.8      -    65-75%    -    5.1 - 5.8  -       Petro
                                                                           Caribbean


All of the technical information, including information in relation to
reserves and resources that is contained in this document has been reviewed
internally by the Company's technical consultant, Mr Mark Patterson. Mr
Patterson is a geophysicist who is a suitably qualified person with over 25
years' experience in assessing hydrocarbon reserves and has reviewed the
release and consents to the inclusion of the technical information.

The reserves estimate for the Guatemalan Blocks in which LAR (and CTR) have an
interest in is as reported by CTR. CTR has not reported 1P and 3P estimates,
but Range is seeking such information from CTR for future reporting purposes.

All of the technical information, including information in relation
to reserves and resources that is contained in this document has been reviewed
internally by the Company's technical consultant, Mr Mark Patterson. Mr
Patterson is a geophysicist who is a suitably qualified person with over 25
years' experience in assessing hydrocarbon reserves and has reviewed the
release and consents to the inclusion of the technical information.

The reserves estimates for the 3 Trinidad blocks and update
reserves estimates for the North Chapman Ranch Project and East Texas Cotton
Valley 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 an in accordance with
the guidelines of the Society of Petroleum Engineers ("SPE"). The SPE Reserve
definitions can be found on the SPE website at spe.org.

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").

The prospective resource estimates for the two Dharoor Valley
prospects are internal estimates reported by Africa Oil Corp, the operator of
the joint venture, which are based on volumetric and related assessments by
Gaffney, Cline & Associates.

The TSX certified 51-101 certified reserves with respect to the
Guatemalan project are as reported by ASX listed Company Citation Resources
(ASX: CTR).

In granting its consent to the public disclosure of this press
release with respect to the Company's Trinidad operations, Petrotrin makes no
representation or warranty as to the adequacy or accuracy of its contents and
disclaims any liability that may arise because of reliance on it.

The Contingent Resource estimate for CBM gas at the Tkibuli project is sourced
from the publically available references to a report by Advanced Resources
International's ("ARI") report in 2009: CMM and CBM development in the
Tkibuli-Shaori Region, Georgia. Advanced Resources International, Inc., 2009.
Prepared for GIG/Saknakhshiri and U.S. Trade and Development Agency. -
.globalmethane.org/documents/toolsres_coal_overview_ch13.pdf. Range's
technical consultants have not yet reviewed the details of ARI's resource
estimate and the reliability of this estimate and its compliance with the SPE
reporting guidelines or other standard is uncertain. Range and its JV partners
will be seeking to confirm this resource estimate, and seek to define
reserves, through its appraisal program and review of historical data during
the next 12 months.

Reserve information on the Putumayo 1 Well published by Ecopetrol 1987.

SPE Definitions for Proved, Probable, Possible Reserves and
Prospective Resources

Proved Reserves are those quantities of petroleum, which by
analysis of geoscience and engineering data, can be estimated with reasonable
certainty to be commercially recoverable, from a given date forward, from
known reservoirs and under defined economic conditions, operating methods, and
government regulations.

Probable Reserves are those additional Reserves which analysis of
geoscience and engineering data indicate are less likely to be recovered than
Proved Reserves but more certain to be recovered than Possible Reserves.

Possible Reserves are those additional reserves which analysis of
geoscience and engineering data indicate are less likely to be recoverable
than Probable Reserves.

1P refers to Proved Reserves, 2P refers to Proved plus Probable
Reserves and 3P refers to Proved plus Probable plus Possible Reserves.

Prospective Resources are those quantities of petroleum estimated,
as of a given date, to be potentially recoverable from undiscovered
accumulations by application of future development projects. Prospective
Resources have both an associated chance of discovery and a chance of
development. Prospective Resources are further subdivided in accordance with
the level of certainty associated with recoverable estimates assuming their
discovery and development and may be sub-classified based on project maturity.

Contingent Resources are those quantities of hydrocarbons which are
estimated, on a given date, to be potentially recoverable from known
accumulations, but which are not currently considered to be commercially
recoverable.

Undiscovered Oil-In-Place is that quantity of oil which is
estimated, on a given date, to be contained in accumulations yet to be
discovered. The estimated potentially recoverable portion of such
accumulations is classified as Prospective Resources, as defined above.