Update on the Conditional Letter of Intent signed with TGS-NOPEC for the Charter of Polarcus Nadia

Doug Robson — October 20, 2009

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Reference is made to the notice published 01 September 2009 on the Norwegian OTC trading support system regarding the signature of a conditional Letter of Intent with TGS-NOPEC Geophysical Company ASA (TGS) for the charter of the 12 streamer 3D seismic vessel Polarcus Nadia for approximately 3 months commencing in December 2009.

Polarcus Limited (OAX: PLCS) announced today that further to the referenced notification, TGS-NOPEC Geophysical Company ASA (TGS) has advised the Company that the first phase of this planned program, comprising 2,000 square kilometres of long offset 3D, is now confirmed.

The Right of First Refusal for TGS to extend the charter thereafter in two 6 month increments under pre-agreed commercial terms remains in full force and effect.

TGS has further requested that the charter of Polarcus Nadia should commence as soon as the vessel is ready for operations in December 2009, subject to execution of a Seismic Charter Agreement.