Tower Resources PLC, (AIM: TRP), the oil and gas exploration company with interests in sub-Saharan Africa, principally in Uganda and Namibia, announces that Northland Capital Partners Limited and Westhouse Securities Limited have raised £4,275,000 before expenses through a placing with institutional and other investors (the ‘Placing’) of 90,000,000 new ordinary shares (the ‘Placing Shares’) at a price of 4.75p per Placing Share. The Placing was significantly oversubscribed.

It is intended that the proceeds of the Placing will be used to increase the Company’s working capital resources and provide the facility to fund near term seismic operations in Uganda. Any funds not used for these purposes will be available to invest in new projects.

The Placing is being effected under the Company’s existing share authorities, and the Placing Shares equate to 8.02 per cent. of the Company’s enlarged issued share capital.

Application has been made for the Placing Shares to be admitted to trading on AIM and it is expected that the Placing Shares will be admitted to trading on 17 February 2011. The Placing Shares will, when admitted, rank pari passu in all respects with the existing ordinary shares.

Following admission of the Placing Shares to trading on AIM, the Company’s total issued and voting share capital will comprise of 1,122,162,756 ordinary shares of 0.1p each. The Company does not hold any ordinary shares in treasury. Therefore the total number of voting rights in the Company is 1,122,162,756. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company following admission.

Following admission of the Placing Shares to trading on AIM, there will be no change in the number of ordinary shares held by the Directors of the Company who, given the strong institutional interest and oversubscription, did not participate in the Placing to allow maximum institutional take up, but their percentage shareholdings will be revised as follows:

% of enlarged share capital

Mark Savage 8.91%
Jeremy Asher 7.80%
Peter Taylor 7.66%
Peter Blakey 7.47%
Peter Kingston 0.22%

Executive Chairman, Peter Kingston, commented: "I am very pleased to have had such good support from both private and new strong institutional investors so that momentum can be maintained on Tower’s forward programme."

Contacts:

Tower Resources PLC
www.towerresources.co.uk
Peter Kingston, Chairman
07802 804852

Northland Capital Partners Limited (Nominated Adviser and Joint Broker)
Gavin Burnell / Edward Hutton
020 7492 4750

Katie Shelton/Charles Vaughan (Broking)
Westhouse Securities Limited (Joint Broker)
Tim Feather / Matthew Johnson

Walbrook PR
0207 601 6100

Bob Huxford
020 7933 8780

Walbrook IR
Paul Cornelius
020 7933 8794

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