Operational Update

Urals Energy Public Company Limited

("Urals Energy" or the "Company")

1 June, 2012

Operational Update

Urals Energy, the independent exploration and production company with operations in Russia, today announces that Well #41 located in the Petrosakh Field has been successfully completed, with preliminary results showing approximately 140 bopd, which was within the target range.

Following the successful result at Well #41, preparatory work has now begun on Well #53 also located in the Petrosakh Field.

Investor site visit

During the last stages of completion of work on well #41, the Company hosted representatives of Alpcot Capital Management Ltd, Urals' largest investor. The representatives visited all existing wells, the refinery, and had a chance to meet with the drilling team, workers, and management on site and in Yuzhno-Sakhalinsk.

Full Year Results

Urals Energy will announce Full Year results for the year ended 31 December 2011 in the week commencing 4th June 2012.

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

"We are very pleased with the success at Well #41, which was in part due to having benefitted from our experiences on Well #51. Furthermore, this is a strong endorsement of the potential of our acreage and the ability of the strengthened team to deliver positive results on time and within budget. As we continue to focus on the development of our Petrosakh and Arcticneft assets the next phase of the development drilling campaign is already underway with preparation for Well #53.

We are happy with the changes that have been recently made at Petrosakh, including the hiring of new professionals and adjustments to shifts schedule. The company is committed to continue improving its operations."

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