Farm out of 10% of Georgian Interests

10 January 2011

Australian Securities Exchange
Level 4, 20 Bridge Street
SYDNEY NSW 2000

Via e-lodgement

HEADS OF AGREEMENT EXECUTED ON GEORGIAN LICENSES

Highlights

  * Heads of Agreement signed with Red Emperor Resources NL seeing Red Emperor
    acquire a 20% interest (10% from Range / 10% from Strait) in the two
    Georgian Licenses;
   
  * Red Emperor to pay 40% of the costs of the two well program in return for
    acquiring the 20% interest; and
   
  * Red Emperor intends to offer Range Resource's ASX and AIM shareholders an
    opportunity to participate in future capital raising.
   
Range Resources Limited ("Range" or "the Company") (ASX: RRS / AIM: RRL) along
with its Georgian partner Strait Oil and Gas UK Limited ("Strait") is pleased
to announce that it has entered into a Heads of Agreement ("HOA") with Red
Emperor Resources NL ("Red Emperor") (ASX: RMP) to acquire a 20% farm-in
interest (10% from Range and 10% from Strait) in Block VIa and Block VIb in
Georgia.

The key terms of the HOA will see Red Emperor contribute 40% of the drilling
costs for the planned two well program (capped at total gross costs of $14m -
RMP contributing $5.6m) to acquire the 20% interest in the two blocks.

The Company believes the transaction significantly reduces the Company's
financial exposure to the two well drilling program through the favourable
two-for-one farm-in terms, whilst still maintaining a significant 40% interest
in the two blocks.

As part of the discussions with Red Emperor's management, it is Red Emperor's
intention to offer Range's ASX and AIM shareholders the opportunity to
participate in a future capital raising subject to necessary regulatory
requirements. Details of this offer to Range's ASX and AIM shareholders will be
communicated closer to the time of the capital raising.

Conditions Precedent of the Heads of Agreement

The Heads of Agreement entered into with Red Emperor has the following key
conditions precedent:

 a. Completion by Red Emperor, to the reasonable satisfaction of its directors,
    of all necessary due diligence investigations in respect of Strait and the
    Georgian Blocks by 31 January 2011 (or such later date as agreed by the
    parties);
   
 b. The execution of a share subscription agreement, pursuant to which Red
    Emperor will acquire its farm-in interest in the joint venture entity, by
    the parties by 28 February 2011 (or such later date as agreed by the
    parties);
   
 c. Range and Strait procuring any necessary third party consents for the issue
    of shares (in the joint venture entity that holds the Georgian Licenses) to
    Red Emperor as a result of the transaction (if required) by 15 February
    2011; and
   
 d. Receipt of all necessary ministerial consent, government and regulatory
    approvals, in respect of the subscription of shares by 15 February 2011 (or
    such later date as agreed by the parties).
   
For and on behalf of the Board

Regards


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: [phone]
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.
   
  * Range holds a 13.56% 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.
    Independently assessed gross recoverable reserves in place of 5.4 Mmbbls of
    oil.
   
  * 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 (that will
    reduce to 40% as a result of the transaction in the announcement) 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 oil-in-place.
   
  * In Trinidad Range has entered into a HOA to acquire a 10% interest in
    holding companies with three onshore production licenses. Independently
    assessed gross recoverable 2P reserves in place of 4.8MMbls.
   
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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