7 July 2016

Sound Energy plc

("Sound Energy" or the "Company")

Tendrara Development Funding

Sound Energy, the European / Mediterranean focused upstream gas company, is pleased to announce that it has received a non-binding Expression of Interest from Oil & Gas Investment Fund ("OGIF"), its partner on the Tendrara licence, expressing OGIF's interest in funding, building and operating a new pipeline connecting Tendrara to the Gazoduc Maghreb Europe (GME) pipeline. The cost of the new Tendrara pipeline is currently estimated to be approximately US$50 million.

James Parsons, Chief Executive Officer of Sound Energy, commented:

"We are very pleased to have received this first expression of interest which potentially enables us to construct the infrastructure which would be required at Tendrara without equity dilution, whilst also further broadening our strong partnership with OGIF."

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