Release of charge over Petrosakh

Urals Energy Public Company Limited

("Urals Energy" or the "Company")

Release of charge over Petrosakh

Petraco payment restructure

Urals Energy, the independent exploration and production company with operations in Russia, is pleased to announce that Petraco Oil Company Limited ("Petraco") has released its charge over the Company's Petrosakh assets.

Background to the release of the charge

Under the terms of the debt repayment agreement with Petraco, details of which were originally announced on 12 April 2010 (the "Agreement"), Urals Energy pledged 97.2% of the shares it held in CJSC Petrosakh to Petraco as security against the restructured prepayment financing arrangements with Petraco (the "Petraco Loan").

After the payment to Petraco of $10 million following the Taas loan assignment, and in accordance with one of the terms of the Agreement, Petraco has released its charge over the shares of CJSC Petrosakh in full.

Petraco payment extension

In addition, the payment to Petraco scheduled for 31 July 2012 according to the Restructuring Agreement date 1 August, 2011 (further details of which were announced on 3 August 2011), has been extended to 30 November 2012 (after the shipment of the tanker from Arcticneft).

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

"This marks an extremely important milestone in Urals Energy's continued resolution of the legacy issues which have hampered its progress and for the first time in many years, Urals Energy now has one of its assets free of any security.

We are thankful to Petraco for their ongoing support and are confident that we will be able to meet the remaining debt obligations fully and in a timely manner according to our agreements."

Enquiries: