EXIM Bank Loan Agreement

2nd August 2011

Jubilant Energy N.V.

("Jubilant" or "the Company")

Completion of USD 50 million Loan Agreement with EXIM Bank

Jubilant is pleased to announce that on 1st August 2011 it signed a dollar loan agreement with Export-Import Bank of India ("EXIM Bank") for a term loan facility of USD 50 million (the "Loan"). The Loan will be used to fund the Company's continued exploration and development expenses. The tenor of the Loan is six years with a capital moratorium period of four years, with repayment commencing thereafter in four half yearly installments. The Loan carries an interest rate of 550 bps over the 6 month USD LIBOR rate. EXIM Bank has an option to convert part or whole of the outstanding Loan into ordinary shares in the Company at a mutually agreed price.

With the Loan, the Company has undrawn facilities of USD 132 million. The Directors believe that the Company's cash and undrawn facilities are adequate to fund the work programme until the middle of 2012. Jubilant plans to raise further funds through optimal sources.

The security provided to EXIM Bank for the Loan includes certain of the Company's assets and a corporate guarantee ("Corporate Guarantee") by Jubilant Enpro Private Limited ("Jubilant Enpro"). Jubilant Enpro is the ultimate holding company of Jubilant Energy N.V., and is jointly controlled by Mr Shyam Sunder Bhartia and Mr Hari Shanker Bhartia.

For the Corporate Guarantee to be provided by Jubilant Enpro, Jubilant has agreed to pay a commission of 1% per annum of the guarantee amount to Jubilant Enpro. The Corporate Guarantee commission is classified as a related party transaction for the purposes of Rule 13 of the AIM Rules for Companies.

The independent directors for the aforesaid transaction, namely Ajay Khandelwal, Sir Robert Paul Reid, Arun Kumar Duggal, Dr. Andrew Wood and Shahzaad Dalal consider, having consulted with the Company's nominated adviser, Evolution Securities Ltd, that the terms of the Corporate Guarantee are fair and reasonable insofar as the Company's existing shareholders are concerned.

Ajay Khandelwal, CEO of the Company commented:

"This funding arrangement demonstrates Jubilant's ability to raise funds in the current challenging macroeconomic environment at attractive rates, especially compared to those available in India. It also shows the trust of the lenders in our continuing endeavour."

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