MEC Resources Ltd ACN 113 900 020

PO Box 317, North Perth, WA 6906 14 View Street, North Perth 6006, Western Australia

T: +61 8 9328 8477 F: +61 8 9328 8733 info@mecresources.com.au www.mecresources.com.au

23 March 2009 Companies Announcements Office Australian Securities Exchange Limited 10th Floor, 20 Bond Street SYDNEY NSW 2000 Dear Sir/Madam Offshore Sydney Basin – Significant Gas Features

• New hydrocarbon indicators revealed • Evidence of extensive gas generation • Key consultants appointed and potential joint venture partner discussions

underway • Advent looking to secure an appropriate drill rig

MEC Resources Ltd (ASX:MMR) advises that its investee entity Advent Energy Ltd (Advent) has interpreted significant new seismically indicated gas features in an ongoing review of its exploration data for the PEP11 offshore Sydney Basin project (JV partner - Bounty Oil & Gas NL (ASX: BUY)).

Advent has previously reported the prospective P10 unrisked gas resource estimate of 16.3 trillion cubic feet for the permit (ASX: MMR 27 October 2008).

Key indicators of hydrocarbon accumulation features have been interpreted from the ongoing review of 2004 seismic data. If confirmed by drilling, these seismic features are of immense significance to any commercial development of the project. The seismic features include apparent Hydrocarbon Related Diagenetic Zones (HRDZ), potential Amplitude Versus Offset (AVO) features and flat spots.

MEC Resources Managing Director David Breeze said that the seismic evidence of extensive gas generation and migration is continuing to be examined by Advent and independent geologists and geophysicists.

In a further step towards commercial development of the project, Advent has appointed lead consultants RPS Group for the environmental planning and approvals process. DU-EL Drilling Services has been appointed for well construction and project management to assist with the next stage of the project’s development.

Advent is also continuing to pursue joint venture discussions and is looking to secure an appropriate drilling rig to test PEP11. The current market downturn and lower level of operational activity has presented Advent with a number of options to achieve the latter within a relatively quicker timeline.

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“We are confident that our work to date shows evidence of a prospective deeper gas source in the area. Advent will now prioritise research and exploration to further prioritise drilling targets,” Mr Breeze said.

“Additional mapping to look at the details of the hydrocarbon indicators and their relationship to the deeper prospective structures will clearly be helpful in providing a fuller picture of the hydrocarbon potential of the basin.”

An inferred gas chimney in a seismic profile was initially confirmed by Timothy Berge. Mr Berge has published widely in this area and is a consultant geophysicist with extensive international experience with multinational oil companies. Additionally, collaboration with the CSIRO in Perth, Western Australia, has yielded for the first time a fully independently derived and interpreted gas chimney feature from revision of the velocity model of the seismic data and reprocessing work.

Advent believes the gas seep structures already identified on the continental shelf warrant further independent review and is in discussions with the CSIRO and other independent geophysicists to progress this.

Compilation of data over the offshore Sydney Basin demonstrating an active thermogenic hydrocarbon

system in PEP11.

Interpretation of Seismic Survey Data Continues

HRDZ (Hydrocarbon Related Diagenetic Zones) are indicators of hydrocarbon migration. Comparisons have been made between HRDZ observed in the 2004 Baleen seismic survey data and those by Geoff O’Brien, formerly of Geoscience Australia and R. Cowley, over the Skua, Swift and Tahbilk fields in the prolific Bonaparte Basin and over the Browse Basin. Comparisons are illustrated below:

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Seismic line B4-05 in PEP 11 showing potential seismic hydrocarbon indicators by comparison with seismic

line over Skua and Swift Oil Fields, Bonaparte Basin.

Seismic line B4-29 in PEP 11 showing potential seismic hydrocarbon indicators by comparison with seismic lines over

Tahbilk Gas Discovery in the Southern Vulcan Sub Basin.

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Seismic Line B4-06 in PEP 11 showing potential seismic hydrocarbon indicators by comparison with seismic

line in the Browse Basin.

Seismic Line B4-11 in PEP 11 showing potential seismic hydrocarbon indicators by comparison with seismic

line over Tahbilk Gas Discovery in the Southern Vulcan Sub Basin.

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Review of amplitude versus offset data (AVO)

As part of its ongoing exploration, Advent has continued to analyse data covering potential key hydrocarbon indicators detected over PEP11 in an attempt to further understand the extent of hydrocarbon charge observed indirectly as gas seeps at the seabed surface and on seismic data. A recent review of the results of an earlier study of amplitude versus offset data (AVO) analysis undertaken by an independent contractor indicates the possible presence of hydrocarbons adjacent to structures previously identified in PEP 11.

The analysis of the potential AVO on seismic line B4-15 is displayed in the seismic section below. Ongoing AVO work is aimed at extending the anomalies onto adjacent seismic lines.

Further AVO analyses will contribute to assisting the interpretation of seismic data already acquired.

“The AVO work done so far is encouraging for the possible presence of gas effects in the target zones and we eagerly await the conclusion of further studies.” Mr Breeze said.

Possible AVO anomaly observed in seismic section down dip and adjacent to a major prospect mapped as a

future drill target.

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Flat spots are potential hydrocarbon indicators that can demonstrate gas/oil, gas/water or oil/water interface events. Advent has identified candidate sites with this direct hydrocarbon indicator feature. A review is underway of potential locations on the northern end of the main structural trend containing the Baleen and Fish prospects.

Advent believes the new data proves the offshore Sydney Basin to be a petroleum basin with excellent potential for the discovery of gas and oil. Advent’s work to date has confirmed hydrocarbon generation and migration in the offshore Sydney Basin.

Yours Sincerely

David Breeze Executive Director MEC Resources Ltd PO Box 317 North Perth WA 6906 Tel: +61 8 9328 8477 Media Enquiries: Bill Kemmery Fortbridge Consulting Tel: +61 2 9331 0655 Mobile: +61 400 122 449 Notes: In accordance with ASX listing requirements, the geological information supplied in this report has been based on information provided by geologists who have had in excess of five years experience in their field of activity. Asset Energy Pty Ltd is a wholly owned subsidiary of Advent Energy Ltd and is the operator’s agent under the joint operating agreement. Asset Energy Pty Ltd currently holds a 25% interest in PEP11 and has the right to earn a total of 85% in PEP11. MEC is an exploration investment company and relies on the resource and ore reserve statements compiled by the companies in which it invests. All Mineral Resource and Reserve Statements have been previously published by the companies concerned. Summary data has been used. Please refer to relevant ASX releases for details and attribution. Unless otherwise stated all resource and reserve reporting complies with the relevant standards. Resources quoted in this report equal 100% of the resource and do not represent MEC’s investees’ equity share.