Rovneiko Settlement

Urals Energy PCL

(''Urals Energy'' or the ''Company'')

Rovneiko Settlement

Urals Energy PCL (AIM:UEN), the independent exploration and production company with operations in Russia, is pleased to announce that the Company has now signed a comprehensive settlement agreement with Mr V Rovneiko, a former Director of the Company, on all outstanding litigation and pending or threatened disputes, following the discussions announced on 18 November 2013. All parties to the dispute are pleased to bring it, and all other related or unrelated allegations, to a full and final resolution.

The ongoing litigation had arisen over two principal matters, namely the ADRA and the London Arbitration Award:

The ADRA: As part of the overall settlement, Mr Rovneiko has agreed to withdraw his claim for US$41 million arising out of the disputed ADRA, a claim that the Company has opposed vigorously over the last year;

The London Arbitration Award: As part of the overall settlement, the Company has agreed to terminate its recognition and collection efforts on the Arbitration Award, waive its rights and release Mr Rovneiko from any obligation thereunder.

The accounts of the Company in previous years did not make any provision for the ADRA claim whereas the loan which was the subject of the Arbitration Award had been fully written off in the accounts of the Company in previous periods. As a result, no current write off, provision or adjustment in the Company's accounts is required by the above settlements.

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