RNS Number:2552M
Melrose Resources PLC
12 June 2003



FOR IMMEDIATE RELEASE

12 June 2003


                            MELROSE RESOURCES PLC

                               AGM announcement


Melrose Resources plc announces that at the Annual General Meeting today, the
shareholders of the Company approved all of the resolutions put before the
meeting. At the meeting Robert Adair, Chairman, gave the following update of
recent activity and of the outlook for the Group.


"I am very pleased to report significant further achievements by the Group in
recent months.


"In Bulgaria, construction work on the production platform for the Galata field
continues and we are on schedule for first production in January 2004 at rates
of around 40 MMcfpd.


"In the USA, we have now commenced an active drilling programme out of cashflow:
two wells have recently been drilled on the Jalmat Unit and are scheduled for
completion this month. The initial indications are encouraging and we expect our
daily production in the USA to increase to over 800 boepd once these wells are
on production, which represents an increase of over 30% since last year end.
These good results confirm the exploitation upside of our US assets. Further
drilling is planned for the remainder of this year.


"We are very excited about our exploration success on the El Mansoura concession
in Egypt with the recently announced third consecutive discovery in the shallow
Pliocene formation. We have also confirmed that the Miocene discovery which we
announced in February is now much bigger than originally believed. We expect
gross production from the concessions in Egypt of around 100 MMcfepd by the
first quarter of next year, increasing to over 150 MMcfepd in 2005. In 2006,
gross production from fields already discovered in Egypt is expected to be over
200 MMcfepd.


"I believe that El Mansoura is now proving to be a major league exploration
concession. We have only just begun to prove up the potential of the first two
horizons on the concession. The deeper Oligocene structures, where reserves
could be significantly greater, are still to be tested. Prospects and leads have
already been identified on the concession with targets totalling over 2.5 Tcf.
This year in Egypt we have added net reserves of around 70 Bcfe which compares
with our net reserves in Egypt at the beginning of the year of 13 Bcfe.


"By 2005, we anticipate that total Group net production from existing fields in
all areas should exceed 70 MMcfepd (11,600 boepd) with additional production
expected from success in the planned exploration programme. We have the
potential, therefore, to dramatically increase reserves and production over the
next few years and hence shareholder value."


For further information please contact:

Melrose Resources plc
Robert Adair , Chairman                                     0184 553 7037
David Curry, Chief Executive                                0131 225 6678
Chris Thomas, Corporate Development Director                0207 462 1600

Binns & Co PR Ltd
Ben Willey                                                  020 7786 2812




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