Taipan Resources Inc.

Taipan Resources Inc.

February 09, 2015 09:00 ET

Taipan Commences Arbitration Against EAX/Afren

NAIROBI, KENYA--(Marketwired - Feb. 9, 2015) - Taipan Resources Inc. (TSX VENTURE:TPN)(OTCQX:TAIPF) ("Taipan", "the Company"), announced that the Company's Kenya based subsidiary Lion Petroleum Corp ("Lion") has commenced an arbitration action against East African Exploration (Kenya) Limited ("EAX"), a wholly owned subsidiary of Afren Plc. This action has been filed in response to certain breaches to the Joint Operating Agreement ("JOA") signed between EAX and Lion in respect of Block 1.

This Request for Arbitration is filed on behalf of Lion in accordance with Article 4 of the Rules of Arbitration of the International Chamber of Commerce (the "ICC Rules").

In its Notice of Arbitration, Taipan claims that among other things, EAX, as Operator in Block 1, failed to (1) diligently pursue joint operations or meet minimum work obligations; (2) follow good and prudent petroleum industry practices followed by international petroleum industry operators under similar circumstances; (3) follow agreed contract award procedures; and (4) follow agreed accounting procedures.

Taipan is seeking not less than US$10 million as restitution for the damages it has suffered as a result of EAX's breaches of contract.

Taipan (through "Lion") holds a 20-per-cent working interest in Block 1 (5,497,000 acres/22,246 square kilometres) while EAX holds the remaining 80%. EAX has a two-well commitment in the current exploration period in Block 1 ending October 8, 2016.

About Taipan Resources Inc.: Taipan Resources Inc. (TSX VENTURE:TPN)(OTCQX:TAIPF) is an independent, Africa-focused oil exploration company with interests in Block 1 and Block 2B onshore Kenya through its wholly owned subsidiary Lion Petroleum Corp.

Taipan operates and holds a 30% working interest in Block 2B (1.35 million acres / 5,464 km2) and a 20% working interest in Block 1 (5.497 million acres / 22,246 km2) which is operated by East Africa Exploration (Kenya) Ltd, a subsidiary of Afren plc.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The statements contained in this release that are not historical facts are forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from the targeted results. The Company relies upon litigation protection for forward looking statements.

By definition of the COGC Handbook - "Undiscovered resources are those quantities of oil and gas estimated on a given date to be contained in accumulations yet to be discovered." Further the Handbook states - Caution (per NI 51-101/5.9(2)(v)(B)) -"There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources." In addition, per NI 51-101/5.6 "the estimated values disclosed do not represent fair market value."

The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Taipan. As a result, Taipan cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and Taipan will only update or revise publicly any of the included forward-looking statements as expressly required by Canadian securities law.

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