PRESS RELEASE
`RESPONSES TO ARTICLE TITLED "CASINO IN CRISIS", BY
MOHAMMAD BASHIR"

This is a direct response to the front page news article carried out on Tuesday 26⁶ April 2011 by Mohammad Bashir titled "Casino in Crisis".

The purpose of my response is to address the underlying issues I drew from the Article and perhaps to update on additional facts.

1. BACKGROUND & SHAREHOLDING STRUCTURE

The proposal for the investment in the Casino was approved by the Board of Petroleum Resource Gobe Limited ("PRG") in December 2007 and Petroleum Resource Moran Limited's Board ("PRM") in early 2008.

Both PRG and PRM acquired 5% equity interest in CMSS (PNG) Ltd with capital outlay of K1 I million each. The outstanding balance of the equity was expected from CMSS International, a Korean Company and the Parent Company of CMSS (PNG) Ltd. We are aware that the outstanding equity is not paid in full to date, the main reason for the delay in completion of the construction.

PRG did not invest K26 million has claimed in your report.

2. PROJECT AGREEMENT

Under the Project Agreement for the Construction of International Five (5) Star Hotel in Port Moresby between the State, NCDC and CMSS (PNG) Ltd, CMSS is responsible for the construction and completion of the Hotel and Casino facility, whilst the State facilitating the Building Board's and Development License & State Lease Approval.

One of the strategic reason and attraction for MRDC's investment in this Hotel/Casino Project was the State Backing and Investment & Tax Incentives allowed and included:

· 100 depreciation claim on plant & equipment;

· Double deduction for export market development in relation to Tourism under Section 72 of the Income Tax Act;

· Double deduction for staff training;

· 10 years corporate tax exemption/holiday; and

· First Casino Operating License upon completion of the Hotel and Casino Facility. Any investor would be attracted with these kinds of incentives.

3. PROJECT ASSESSMENT

MRDC is equally concern in the delay in construction of the Hotel as an investor and shareholder and that the requirements of the Project Agreement not met by CMSS (PNG) Ltd.

We are now assessing the whole project and strategizing our next cause of action.

4. CONCLUSION

MRDC remains committed to resolving this issue for the benefit of our stakeholders, even though this investment was done before my time as the Managing Director.

Mr. Augustine S Mano

MANAGING DIRECTOR