TOWER RESOURCES PLC N OTES TO T H E  FINAN C IA L ST A TE M E N TS F OR T H E  Y E A R E ND E D 31 D ECE MB ER  2010  9. Intangible assets (continued) 10.  Investments – subsidiary undertakings The loans to subsidiary undertakings have no fixed repayment terms but are repayable in more than one year. During the year the Company incorporated a new wholly-owned subsidiary called Tower Resources (Uganda)  Limited. This company had not commenced trading or undertaken any commercial transactions at the year  end.  Under the terms of the agreement for the purchase during 2008 of Comet Petroleum Ltd (“Comet”), additional consideration may be payable in the future depending upon the success of Comet’s evaluation and  exploration activities, although it is not possible at this stage to quantify with any accuracy such additional  prospective consideration. Through its wholly owned subsidiary, Comet Petroleum (SADR) Limited, Comet is  investigating the possibilities for participation in oil and gas exploration in the Saharawi Arab Democratic  Republic in the Western Sahara. The Company’s directly and indirectly held subsidiary undertakings as at  3 1 December 2010 were:  The Directors have assessed the carrying value of the subsidiary company investments and in their opinion no  impairment provision is currently considered necessary.  3 1 Loans to Shares in subsidiary subsidiary undertakings undertakings Total $ $ $ C ompany  C ost  At 1 January 2009  7,598,865  8,088,545  15,687,410  Advances during the year  6,215,249  -  6,215,249  ________________________________________________________________________________________ At 3 1 December 2009  1 3 ,814,114 8,088,545 21,902,659 At 1 January 2010  1 3 ,814,114 8,088,545 21,902,659 Formation of new subsidiary during the year  -  1  1  Advances during the year  7,2 3 4, 3 8 3 - 7,2 3 4, 3 8 3 ________________________________________________________________________________________ At 3 1 December 2010  21,048,497  8,088,546  29,1 3 7,04 3 The outcome of ongoing exploration and evaluation, and therefore whether the carrying value of E&E assets  will ultimately be recovered, is inherently uncertain. The Directors have assessed the value of the E&E  expenditure carried as intangible assets, and in their opinion, no further impairment is necessary. This  assessment includes a review of the expiry dates of licenses and the likelihood of their renewal, available  funds and the intention to continue exploration and evaluation. Country of  Percentage of ordinary  Subsidiary undertaking  Principal activity Incorporation  share capital held  Neptune Petroleum Limited  Holding company  England  100%  Neptune Petroleum (Uganda) Limited  Oil and gas exploration  BVI  100%  Neptune Petroleum (Namibia) Limited  Oil and gas exploration  BVI  100%  Comet Petroleum Limited  Holding company  BVI  100%  Comet Petroleum (SADR) Limited Oil and gas exploration BVI  100%  Tower Resources (Tanzania) Limited Oil and gas exploration BVI  100%  Tower Resources (Uganda) Limited Oil and gas exploration England  100% 