The Company is delighted to announce that Sound Energy Morocco East Limited ("SEMEL"), the Company's wholly owned subsidiary, has entered into a letter of exclusivity (the "LoE") with Italfluid Geoenergy S.r.l. ("Italfluid") pursuant to which the parties have agreed to use their reasonable endeavours to negotiate and enter into a binding project contract (the "Project Contract") which will on entry commit Italfluid to design, construct, commission, operate, maintain and let to SEMEL a mLNG Plant (the "mLNG Plant") which can produce LNG. The mLNG Plant, which will also treat and process raw gas from the Phase 1 Development prior to liquefaction, is a substantial part of the surface facilities required to be built and operated as part of the Phase 1 Development.