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ARC Response to Announcement of Proposed Merger of Nexus and
Anzon

ARC Energy Limited (ASX:ARQ) (“ARC”) notes today’s announcement that the boards of Anzon Australia Limited (“Anzon”) and Anzon Energy Limited (“AEL”) have recommended an alternative offer from Nexus Energy Limited (“Nexus”) for all of the shares in both Anzon and AEL.

ARC believes that its existing offers to merge with both Anzon and AEL represent fair value and makes strong strategic sense for all shareholders of ARC, AEL and Anzon. ARC does not intend to increase its offer as it does not consider the value it has ascribed to Anzon after its
detailed and extensive due diligence justifies any such increase.

ARC notes that under its Merger Implementation Deeds with each of Anzon and AEL, it is entitled to break fees totalling A$6.5 million.

ARC has a strong base of fully developed, low risk, long life producing assets together with a pipeline of exciting growth opportunities. ARC will continue to evaluate acquisition opportunities that will add value for its shareholders, but will not pursue those opportunities at any price, and considers the current market correction will provide realistically priced opportunities for companies such as ARC with strong reliable cash flows and low risk development and appraisal portfolios.