Operational update

7 September 2017

Urals Energy Public Company Limited

("Urals Energy", the "Company" or the "Group")

Operational update

The Board of Urals Energy (AIM:UEN), the independent exploration and production company with operations in Russia, is pleased to provide the following operational update:

Pre-export short term loan finance arrangement

On 7 September 2017, the Company entered into a pre-export short term loan finance arrangement with Petraco Oil Company Limited ("Petraco") under which Petraco will advance the sum of US$3.0 million to the Company (the "Loan") ahead of the anticipated October 2017 tanker shipment from Kolguev Island.

The key terms of the Loan are that:

• it is repayable immediately following the loading of a tanker shipment of approximately 25,000 tonnes of crude oil, which is currently scheduled for October/November 2017;

• interest is chargeable at a margin of 5% over US$ LIBOR up to the date of the bill of lading of the tanker, after which it reduces to 2% over US$ LIBOR; and

• it is secured by way of a pledge by Urals Energy over the shares that Urals Energy holds in JSC Articneft.

The proceeds of the Loan will be used by the Company for general working capital financing.

Annual General Meeting

The Company plans to hold its Annual General Meeting at the registered office of the Company at Menandrou 3, Glafkos Tower, 5th Floor, Office 501, 1066 Nicosia, Cyprus on Thursday, 9 November 2017. Further announcements and documentation will be provided in due course.

- Ends -

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