Hardman Resources Limited ("Hardman") provides the following progress report on its Mauritania offshore activities:

PSC Area B: Tevet -2 ST1 Appraisal / Exploration Well

In line with the last update on Tevet-2 ST1 on 25 October, Hardman Resources advises that wireline evaluation of the deeper target in this well indicates the presence of an 8 metre gross oil column within good quality Cretaceous sands.

The result demonstrates the presence of a working petroleum system at this level and whilst probably too small to be commercial, upgrades the potential of other Cretaceous prospects in the area.

Logging operations are presently concluding, after which the well will be plugged and abandoned. The 'Stena Tay' will then move to the Labeidna prospect in PSC B.

The Tevet-2 well is located 2.5 kilometres to the south of the Miocene discovery well Tevet-1, and lies in a water depth of 466 metres. The Tevet-1 discovery was successfully appraised in an earlier phase of the Tevet-2 well.

All reported depths (except water depth) are referenced to the rig rotary table (RT). Hydrocarbon shows will be only be reported after all required logs have been run and evaluated, although Hardman will release weekly updates on the exploration drilling campaign.

Times and dates refer to GMT (Mauritania time), 8 hours behind Western Standard Time, Perth.

RICHARD O'SHANNASSY
COMPANY SECRETARY

Note: In accordance with Australian Stock Exchange Limited 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.