Operational update

18 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.

Petrosakh

The Group's drilling team has spudded Well 130, which is located on the main Petrosakh licence area on the Eastern coast of Sakhalin Island. The target depth is 1,680 meters and it is expected that this depth will be achieved in up to eight weeks. The Group is targeting the Pilenga horizon, the principal oil bearing horizon of the Okruzhnoe field. Further announcements in respect of Well 130 will be made as appropriate.

Arcticneft

Further to the announcement made on 30 March 2017, the Company is now in the advanced stages of negotiation regarding a new contract with the Petraco Oil Company for two export shipments from Articneft in 2017. At present the Company has approximately 31,000 tons (approximately 245,000 barrels) of commercial crude in stock. The first tanker shipment is expected in mid-June 2017.

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