Loan from Petraco Oil Company Limited

Urals Energy PCL

(''Urals Energy'' or the ''Company'')

Loan from Petraco Oil Company Limited ("Petraco")

Urals Energy PCL (AIM:UEN), the independent exploration and production company with operations in Russia, announces that it has entered into a short-term loan agreement with Petraco under which Petraco will advance the sum up toUS$7.0 million to the Company (the "Loan").

The key terms of the Loan are that:

·; it is repayable immediately following the loading of the next tanker shipment, scheduled for Autumn 2013 or 30 November 2013 (whichever is earlier);

·; interest is chargeable at the rate of 5% over LIBOR until the date of the bill of lading of the tanker at which point it reduces to 2% over LIBOR; and

·; it is included in Petraco's existing security over CJSC Arcticneft, further details of which appear in the Company's announcement dated 12 April 2010.

The proceeds of the Loan will be used by the Company to both progress its 2013 drilling plan and working capital financing.

Related party transaction

In view of the fact that Ingeborg Srenger is a director of both Urals and Petraco and the control she exercises over Petraco, the Loan is considered to be a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. The Company's directors (with the exception of Ingeborg Srenger), having consulted with the Company's nominated adviser, Allenby Capital Limited, consider that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.

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