Proposed Issue of Equity

Tower Resources PLC
21 December 2006



                              Tower Resources Plc

                            Proposed Issue of Equity



Tower Resources Plc ('Tower' or the 'Company'), the AIM listed oil and gas
exploration and production company, today announces that it is proposing to
raise £1.040 million before expenses by a placing of 52,000,000 new ordinary
shares (the 'Placing Shares') at 2p per ordinary share (the 'Placing Price'), to
be issued in the following two tranches:



(a)               the first tranche of 45,000,000 Placing Shares (the 'First
                  Tranche') and

(b)               the second tranche of 7,000,000 Placing Shares (the 'Second
                  Tranche').

The Placing Shares are being placed with Agile Energy Limited, a privately held
energy investment company, chaired by Jeremy Asher, formerly CEO of PA
Consulting Group, a leading management, systems and technology consulting firm.
Jeremy Asher will also be appointed as a Director of the Company conditional on
the admission of the First Tranche to trading on AIM. Information on Jeremy
Asher will be announced on his appointment as Director as required under rule 17
and schedule 2 paragraph (g) of the AIM Rules.

The Company intends to apply the proceeds of the placing to the development of
its existing oil and gas assets, the expansion of its oil and gas portfolio and
for general working capital purposes.

The Placing Price equates to the closing mid market price of 2p on AIM as at 20
December 2006, the date prior to the publication of this announcement. The
Placing Shares will, when issued and fully paid, rank pari passu in all respects
with the existing issued ordinary shares of the Company.

Application will be made for the First Tranche to be admitted to trading on AIM
and trading is expected to commence in the First Tranche on 5 February 2007.



Application for the Second Tranche is conditional on the passing of resolution
(s) granting the Company's directors authority to allot the Second Tranche
pursuant to Sections 80 and 95 of the Companies Act 1985 and any other
resolutions required to permit the allotment of the Second Tranche to be
allotted and issued by the Company (the 'Second Tranche Condition'). Following
satisfaction of the Second Tranche Condition, the subscription funds for the
Second Tranche are due no later than 30 April 2007 and it is expected that the
Second Tranche will be admitted to trading on AIM 3 business days after payment,
which (assuming payment on 30 April 2007) is expected to occur on 4 May 2007.


For further information, please contact:

Tower Resources plc
Peter Kingston, Executive Director                            01373 837223



Corporate Synergy
Oliver Cairns                                                 020 7448 4400



Aquila Financial Limited
Peter Reilly/Ross Bethell                                     020 7202 2601
[e-mail]


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