The board of Rosco declares the terms of a pre-conditional all cash offer to be made by Rosco for the entire issued and to be issued share capital of Arawak.

The Offer will be made on the following basis: for each Arawak Share: CAD 0.90 (44.9 pence*) in cash

*Based on a currency exchange rate of CAD 2.0065 to £1.00 (being the Bloomberg Rate as at 5.00 pm (London time) on 27 October 2008).

The Offer price of CAD 0.90 per Arawak Share values the entire issued share capital of Arawak at approximately CAD 164.4 million (£81.9 million). Arawak Shares will be acquired under the Offer with the right to receive any dividend declared, made or paid on or after 28 October 2008.

The price to be paid in the Offer represents a premium of approximately: - 127 per cent. to the London Stock Exchange closing middle market price of 19.8 pence per Arawak Share; and - 157 per cent. to the Toronto Stock Exchange closing price of CAD 0.35 per Arawak Share, - in each case on 27 October 2008, the last business day prior to the date of this Announcement.

A currency exchange facility will be made available to Arawak Shareholders under which they will be able to elect to receive their consideration in pounds sterling at the Bloomberg Rate on the latest reasonably practicable date for fixing such rate prior to the relevant payment date. No commission will be charged for using this facility.

Tags: Arawak Energy Corporation, Rosco