Drilling Update

Exillon Energy plc

22 March 2011 - Exillon Energy plc ("Exillon Energy", the "Company" or the "Group") (EXI.LN), a British listed independent oil producer with assets in two oil-rich regions of northern Russia, Timan-Pechora ("Exillon TP") and West Siberia ("Exillon WS"), is pleased to announce that well EWS I - 38 successfully found oil on the eastern part of the East EWS I field, and legacy exploration well EWS I - 1 on the southern part of the EWS I field has been successfully re-completed.

EWS I - 38

EWS I - 38 well which was spudded on 2 March 2011 was drilled in 17 days on an eastern part of the East EWS I field on a turn-key contract for a total consideration of 0.8 million.

The well encountered the Jurassic P reservoir at 1,858m which is 2m higher than previously thought. Results of wire line logging combined with oil shows and sample analysis whilst drilling, have confirmed the presence of at least 9m of net oil pay within the Jurassic. Testing of the well will be completed mid-April.

The well was drilled directionally 1.1km to the north-east from the existing well pad. On completion of testing the well will be connected up to existing production facilities. The well is a result of the continued application of 3D seismic combined with a thorough understanding of reservoir geology.

EWS I - 1

Exploration well EWS I -1 is located on the southern part of the EWS I field. The well was originally drilled in 1971, and was subsequently suspended due to the absence of production infrastructure.

In March 2011, after re-interpreting the well logs, the Group saw that wire line logging indicates the presence of 7.2 m of net oil pay within the Jurassic P reservoir, which represents more than a three fold increase from the previous estimate. The Group perforated additional intervals and the well flowed water-free oil naturally to the surface with a flow rate of 530 bbl/day on a restricted 8 mm choke.

With 19 new successful wells drilled since 2006 the Group continues to maintain 100% drilling success rate, which is the result of continued application of 3D seismic combined with a thorough understanding of reservoir geology.

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