Operational update

10 April 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.

Komi Republic

The Company has spudded its first exploratory well on the licence held by RK-Oil, its wholly owned subsidiary which was acquired in November 2015. The final target depth for this well is approximately 1,100 metres, with one shallow horizon as a target at approximately 450 metres. The Company expects to reach the final target depth in approximately one month.

At present RK-Oil's reserves of approximately 25 million barrels are classified as "D1" in the Russian Official Classification, equivalent to "P3" or "Possible". These reserves figures have not been reviewed in accordance with the AIM Guidance Note for Mining, Oil and Gas Companies. The Company's objective is to establish proven and probable reserves as a first step in the design of a full Development Plan for the RK-Oil licence area. As noted in Urals Energy's announcement of 30 March 2017, the Company is engaging Blackwatch Petroleum Services to prepare a Competent Person's Report on its portfolio of licences. This Competent Person's Report will be prepared in accordance with an appropriate Standard and it is expected that it will be completed in June 2017.

RK-Oil's exploration and production license is located 12 kilometres from a railroad terminal, which can provide access to the Transneft pipeline (located 80 kilometres from the licence area) for export purposes, or access to the nearest refinery for local sales (located 150 kilometres from the licence area).

Dr Svyatoslav Bilibin, (Dr.Sci.Tech. and Corresponding Member of the Russian Academy of Natural Sciences), an independent adviser to Urals Energy, who meets the criteria of a qualified person under the AIM Guidance Note for Mining, Oil and Gas Companies, has reviewed and approved the technical information contained within this announcement.

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