Issue of Equity

RNS Number:0736V
Melrose Resources PLC
05 February 2004


FOR IMMEDIATE RELEASE                                            5 February 2004

                             Melrose Resources plc


        Placing of 6,250,000 new ordinary shares to raise #10.9 million


Melrose Resources plc, the oil and gas exploration and production company with
interests in Bulgaria, Egypt and USA, today announces that it has entered into
arrangements, conditional inter alia on Admission, to place up to 6,250,000 new
ordinary shares of 10p each at 175 pence per share (the "Placing"), to raise up
to approximately #10.9 million before expenses. The new ordinary shares, which
have been placed by Seymour Pierce and Bell Lawrie White, represent
approximately 10 per cent of the Company's existing issued share capital.

The Company intends to use the net proceeds of the Placing for exploration and
development activities in Egypt and Bulgaria.  In 2004, Melrose is planning to
drill up to 8 exploration wells on the El Mansoura concession in Egypt and at
least one exploration well on Block 91-III in Bulgaria.  A further 5 appraisal
and development wells are also planned for 2004 in the South Batra field in
Egypt.

Applications will be made for the new ordinary shares to be admitted to the
Official Lists of the UK Listing Authority and to the market for listed
securities of the London Stock Exchange. It is expected that such admissions
will take place on 11 February 2004. The new ordinary shares will rank pari
passu with the existing ordinary shares.

Commenting on this, Robert Adair, Chairman, said:

"Recent seismic work has provided further confirmation that our interests in
both Egypt and Bulgaria are highly prospective and the Placing will enable us to
expedite our exploration and development programmes in these areas.  2004 will
see a significant increase in revenues, with the expectation of first gas
production from Galata late in the first quarter and a substantial increase in
production in Egypt compared with last year.  I am also delighted that the
Placing has enabled us to significantly broaden our institutional shareholder
base."


For further information please visit the Company's website at
www.melroseresources.com or contact:

Melrose Resources plc
Robert Adair, Chairman                                         0207 462 1603
David Curry, Chief Executive                                   0131 221 3360
Munro Sutherland, Finance Director                             0131 225 3360
Chris Thomas, Corporate Development Director                   0207 462 1603

Buchanan Communications Limited
Tim Thompson/Ben Willey                                        0207 466 5000



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