Private Equity Investment

TAU CAPITAL PLC

("Tau")

PRIVATE EQUITY INVESTMENT

RELATED PARTY TRANSACTION

Tau today announces that, on completion of the operational milestones established in Lucent Petroleum LLP ("Lucent") business plan it has paid the second tranche for a total consideration of 6.5M$.

This amount is part of the total commitment of 15M$ to Lucent, as announced on 22nd September 2010.

As of this date Tau is awaiting the grant of approvals by the Government of Kazakhstan to convert the initial 4.5M$ bridge loan into equity. This second drawdown of 6.5M$ is also structured as a convertible bridge loan, increasing Tau's total investment in Lucent Petroleum to 11M$.

Tau holds a positive view on the progress of the approval grants process for the conversion of these bridge loans into equity and will announce the outcome in due course.

As of December 31st 2010 Lucent was 40% below expenses budget and fully in line with the exploration plan.

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