Equator Requests Repayment Deferral, Seeks Loan Replacement

Equator Exploration is seeking a short-term deferral of a loan repayment and a potential replacement of the loan.

In September 2007, as reported in the 2006 Annual Report, the company entered into an unsecured, short-term working capital loan agreement for U.S. $5 million, which on 15 December 2007 was due for repayment or conversion into shares at a price of 10 pence per share.

The lenders have agreed to a short deferral of the repayment date whilst the company seeks the finalization of an alternative loan with a commercial bank.