Equator Announces Update on Corporate Activity, Financing

Further to the announcements of 15 November, 29 November and 7 December 2006, the Board of Equator Exploration Limited announced the following update in relation to potential corporate activity. As previously stated, following the receipt of unsolicited approaches, the Company received further additional expressions of interest and as at the date of this announcement, active discussions continue with one party which may or may not lead to a transaction being concluded. A further announcement will be made as and when appropriate.

As referred to in the Company's AGM statement of 7 December 2006, additional funding for development and general working capital purposes continues to be required. We currently estimate that our short term funding requirement could be as much as US$50 million, taking into account the information provided in the Company's announcement of 5 March 2007. The Company continues to explore all finance opportunities.