Statement of Corporate Goverance

Compliance with the UK Corporate Governance Code

Reform Energy Plc seeks to comply where is practically possibly for a company of its size with the principal governance rules contained in the UK Corporate Governance Code (‘the Code’) which is published by the Financial Reporting Council and is available from its website (www.frc.gov.uk) and was updated in June 2010.

From incorporation to 30 November 2011 the board considers that the Company has complied with the Code, with the following exceptions:

Corporate Governance Code

Status

Explanation

A.1.2

The Company has not produced a full annual report setting out the members of the board committees. It has not stated the number of meetings by its board or committees.

The Company is at an early stage, its Non-Executive director’s serve as the Remuneration Committee and Audit Committee. At this early stage the Directors consider it is in the best interests of the shareholders generally to keep overheads to a minimum and for this reason only it has not produced a full annual report.

B.1.1

David Foran (Executive Director) and Christopher Evans (Non-Executive Director) has had within the last three years cross-directorships and involvement in other companies.

The remainder of the Board and the Non-Executive Chairman have considered this past relationship do not consider that this gives rise to any concern of effectiveness of the Board.

B.2.1, B.2.2 and B.2.4

There is no formal nomination committee.

The Company does not consider it would benefit shareholders or lead to more effective management of the Company if the committee was formally formed at this early stage in its development.

B.3.1

A job specification for the Chairman has not been produced by the remuneration committee.

As previously explained, the Company has not formed a remuneration committee. A Chairman with suitable industry knowledge, experience and skill was appointed. The Chairman is satisfied that he understands his role in full and recognises his need of availability in the event of crisis.

B.6.1

The board has not stated in its annual report how the performance of the board and its committees has been conducted.

Given the Company is at an early stage, it has not produced a full annual report.