The Board of Directors of Falcon Energy Group Limited announced that the company has entered into a preliminary agreement with PetroVietnam Drilling & Well Service Corporation dated 24 January 2013 in relation to the setting up of a joint venture company in Singapore which may provide drilling services and associate services to clients. Pursuant to the preliminary agreement, Falcon Energy and PVDWSC will use their good faith efforts to discuss and conclude the definitive joint venture agreement. Falcon Energy will keep shareholders informed if there is any material development by making the appropriate announcement in compliance with the listing rules of the Singapore Exchange Securities Trading Limited.

Shareholders and potential investors of the company are advised to refrain from taking any action in respect of their shares in Falcon Energy which may be prejudicial to their interests and to exercise caution when dealing in the shares of the company. Save for the shareholding interests in Falcon Energy, none of the directors or substantial shareholders of the company has any interest, direct or indirect, in the transaction contemplated under the preliminary agreement. The transaction contemplated under the preliminary agreement is not expected to have a material impact on the net tangible assets per share and earnings per share of Falcon Energy for the financial year ending 31 March 2013.