TANGIERS PETROLEUM LIMITED - Quarterly Activities Report

27 January 2015

                          TANGIERS PETROLEUM LIMITED

Quarterly Report for Period Ending 31 December 2014

The Directors of Tangiers Petroleum Limited ("Tangiers" or the "Company") are
pleased to provide the following report on its activities during the quarter
ended 31 December 2014. A copy of the full quarterly report, including the
diagrams referred to in the text and the Appendix 5B (Quarterly Cash Flow
Report), is available on the Company's website at www.tangierspetroleum.com

                                  Highlights

- On 20 November 2014 the Company announced the acquisition of
Project Icewine, comprising an initial 87.5% working interest in 99,360
contiguous acres located onshore in the prolific North Slope of Alaska, USA

- A placement raising A$1.2 million by issuing 200 million shares at A$0.006
per share was completed on 22 October 2014.

                                   Overview

Key operational activities during the quarter included:

- A General Meeting held on 20 October 2014

- Acquisition of Project Icewine which was announced on 20 November 2014 and
included the following key terms:

- Tangiers (through its agent Burgundy Xploration LLC) was announced the high
bidder on 90,720 acres at the Alaska North Slope Areawide Sale on 19 November
2014

- Upon formal award (expected Q2 2015), Tangiers' wholly owned subsidiary
(Accumulate Energy Alaska Inc.) will become operator with an initial 87.5%
working interest over a total of 99,360 acres

The key corporate activities for the quarter were:

- Finalisation of a placement for A$1.2 million at A$0.006 per share.

                     Key Events Subsequent to the Quarter

- Notice of a General Meeting to be held on 12 February 2015 was announced on
13 January 2015 by the Company. Full details of the Agenda and Business of the
Meeting can be accessed on the Company website,
http://www.tangierspetroleum.com.au/investor-centre/announcements/.

- DeGolyer and MacNaughton were commissioned by the Company to
prepare an independent Prospective Resources Report on the unconventional
potential of Project Icewine the results of which were released to the market
on 19 January 2015. The Independent Report by DeGolyer and MacNaughton has
resulted in an estimated recoverable oil potential net to Tangiers of 431
million barrels of oil (mean, unrisked) in the HRZ, Hue, Kingak & Shublik
shales.*

*Cautionary Statement: The estimated quantities of petroleum that may be
potentially recovered by the application of a future development project
relate to undiscovered accumulations. These estimates have both an associated
risk of discovery and a risk of development. Further exploration, appraisal
and evaluation are required to determine the existence of a significant
quantity of potentially movable hydrocarbons.

Prospective Resource assessments in this release were estimated using
probabilistic methods in accordance with SPE-PRMS standards.

Table 1: Independent Assessment of Unconventional Prospective Resources

Prospect Icewine:  Gross Estimated Unconventional Prospective Oil Resources:

North Slope,       HRZ, Hue, Kingak & Shublik Shales
Alaska
                   (Source: DeGolyer & MacNaughton as of December 31, 2014)
                   Unrisked:                                    Risked:

                                                                (Chance of
                                                                geologic success
                                                                41 %)
Estimate (million      Low        Best      High       Mean        Risked Mean
bbl):
Gross                 244.3       446.4     813.2      492.5          200.3
Net to Tangiers       213.7       390.6     711.5      430.9          175.3

(WI post award:
87.5%)
                                  Financial

The capital raising announced on 19 September 2014 was approved by
shareholders on 20 October 2014. This included the issue of 200,000,000 fully
paid ordinary shares at A$0.006 per share and 12,000,000 unlisted options
exercisable at A$0.01 on or before 22 October 2017. Funds raised will be used
for working capital purposes and to fund the assessment of new ventures.

The Prospectus associated with the capital raise was released to
the market on 22 October 2014. Following this issue, Tangiers has 452,026,723
fully paid ordinary shares on issue. Finalisation of the placement resulted in
a capital raise of A$1.2 million.

The ASX Appendix 5B attached to this report contains the Company's
cash flow statement for the quarter. The significant elements for the period
were:

- exploration and evaluation expenditure of A$0.138m (September 2014 of
A$12.647 million);

- administration and other operating costs of A$0.753m (September 2014 of
A$1.552 million);

- payment for purchase of prospects (Icewine Acquisition deposit) of A$0.707m;

- capital inflow from equity issue of A$1.123m (after costs); and

- a net cash outflow of A$0.467m recorded by the Company.

At the end of the quarter, the Company had net cash reserves of
A$0.779 million.

                          Project Icewine Highlights

The Company, through its agent Burgundy Xploration LLC (BEX),
entered into a binding agreement to acquire a significant working interest
(87.5%) in a large acreage position on a multiple objective, liquids rich
exploration opportunity in onshore Alaska, North America, referred to as
Project Icewine.

Tangiers, (through BEX their co-venture partner), was announced
highest bidder on 90,720 acres in the November State lease sale for the North
Slope of Alaska on 19 November 2014. Post award of the acreage in Q2 2015,
Tangiers will secure a 99,360 gross contiguous acre position with 86,940 acres
net to the Company. The primary term for the State leases is 10 years with no
mandatory relinquishment with a 16.5% royalty.

Figure 1: Project Icewine Location Map (please refer to the pdf version of
this announcement available from the Company's website)

Generous exploration incentives are provided by the State of Alaska with up to
85% of exploration expenditure in 2015 cash refundable, dropping to 75% mid
2016 and thereafter 40%.

The primary objective is an untested, unconventional liquids-rich
shale play in a prolific source rock, the HRZ shale,(Brookian Sequence), that
co-sourced the largest oil field in North America; the giant Prudhoe Bay Oil
Field Complex. Internal modelling and analysis indicates that Project Icewine
is located in a high liquids vapour phase sweetspot analogous to those
encountered in other Tier 1 shale plays e.g. the Eagle Ford, Texas.

Conventional play potential can be found at Project Icewine within
the same Brookian petroleum system and shallow to the HRZ shale and includes
high porosity channel and deep water turbiditic sands. The Brookian
conventional play is proven on the North Slope; the USGS (2013) estimate the
remaining oil potential to be 2.1 billion barrels just within the Brookian
sequence. Additional conventional potential exists in the deeper Kuparuk sands
and the Ivashuk Formation.

Drilling, (2012), in the adjacent acreage to the north confirmed that the HRZ
shales, along with the underlying Kingak & Shublik shales, were all within the
oil window which is extremely encouraging for the unconventional potential at
Project Icewine. In addition a conventional oil discovery was reported in the
Kuparuk sandstones.

A Prospective Resources Report by DeGolyer and MacNaughton, was commissioned
by Tangiers to evaluate the unconventional resource potential of Project
Icewine in early December 2014 and was released to the market on 19 January
2015; refer to `Key Events Subsequent to the Quarter'.

                       Exit from Tarfaya Offshore Block

The planned exit from the Tarfaya Offshore Block has moved forward
considerably and the Company anticipates finalisation of the assignment of its
working interest in the near term.

                              Capital Management

During the quarter the Company completed a placement for A$1.2
million at A$0.006 per share to sophisticated investors in order to strengthen
its balance sheet. The placement was managed by DJ Carmichaels and was
approved by shareholders on the 20th October 2014.

Subsequent to the end of the quarter the Company called for an
Extraordinary General Meeting of its shareholders to be held on the 12th
February 2015. One of the resolutions put to shareholders for approval is the
issue of shares to raise between A$3.5m and A$6m, with the use of funds mainly
for completion of the acquisition of Project Icewine.

              Additional Information required under ASX LR 5.4.3

List of petroleum tenements held by Tangiers at quarter ending 31 December
2014:

             Project                            Acquired
             Name                               during the
Reference                     Location Company  Quarter        Disposed of
                                       Interest                during the
                                                               Quarter
Tarfaya      Tarfaya Offshore Morocco    25%          -             -
             Block
Onshore      Project Icewine  Alaska    87.5%*    Subject to        -
Alaska,                                         final award by
                                                 the State of
North Slope                                        Alaska *
* Tangiers, through their co-venture partner BEX, were announced
high bidder in the November 2014 State of Alaska Bid Round which entitles the
co-venture to secure the leases on award by State of Alaska (anticipated in Q2
2015)

Unless stated elsewhere in this report, there were no beneficial interests
held in farm-in or farm-out agreements at the end of the quarter and no
beneficial interest in farm-in or farm-out agreements acquired or disposed of
during the quarter, and there have been no activities relating to oil and gas
production or development during the quarter.

Sarah Smith

Joint Company Secretary

Tangiers Petroleum Limited
Level 2, 5 Ord Street
West Perth WA 6005, Australia
Ph: + 61 8 9485 0990
www.tangierspetroleum.com

Contacts

RFC Ambrian Limited
As Nominated Adviser
Mr Oliver Morse / Ms Trinity McIntyre
+61 8 9480 2500

As Corporate Broker

Mr Charlie Cryer
+44 20 3440 6800