Completion of Well #41 and operational update

Urals Energy Public Company Limited

("Urals Energy" or the "Company")

Completion of Well #41, license extension and operational update

Urals Energy, the independent exploration and production company with operations in Russia, is pleased to announce that it has successfully completed final production testing on Well #41 on the Petrosakh Field.

Well #41 is now producing approximately 180 BOPD, which was within the Company's target range. Current production at Petrosakh is now 1,429 BOPD.

The Company is currently considering recommendations from several respected oil service companies in order to evaluate future steps regarding Well #51 which was temporarily abandoned due to difficult drilling conditions.

The Company has been informed that the license for the Okruzhnoye field, which expires at the end of 2012, has been renewed until 2037.

Current production at Arcticneft is stable and stands at 710 BOPD.

Commenting on today's announcement, Alexei Maximov, CEO said:

"As we approach the European summer break, we continue to make solid progress on a number of fronts, both in terms of resolving the final legacy issues as well as our drilling programme which, with the completion of Well #41, has already achieved tangible positive results for the Company."

Enquiries: