Schedule 1 update - Zoltav Resources Inc.

ANNOUNCEMENT TO BE MADE BY THE AIM APPLICANT PRIOR TO ADMISSION IN ACCORDANCE WITH RULE 2 OF THE AIM RULES FOR COMPANIES ("AIM RULES")

COMPANY NAME:

Zoltav Resources Inc. ("Zoltav" or the "Company")

COMPANY REGISTERED OFFICE ADDRESS AND IF DIFFERENT, COMPANY TRADING ADDRESS (INCLUDING POSTCODES) :

89 Nexus Way

Camana Bay

Grand Cayman, KY1-9007

Cayman Islands

Ogier House

The Esplanade

St Helier, JE4 9WG

Jersey

COUNTRY OF INCORPORATION:

Cayman Islands

COMPANY WEBSITE ADDRESS CONTAINING ALL INFORMATION REQUIRED BY AIM RULE 26:

www.zoltav.com

COMPANY BUSINESS (INCLUDING MAIN COUNTRY OF OPERATION) OR, IN THE CASE OF AN INVESTING COMPANY, DETAILS OF ITS INVESTING POLICY). IF THE ADMISSION IS SOUGHT AS A RESULT OF A REVERSE TAKE-OVER UNDER RULE 14, THIS SHOULD BE STATED:

Zoltav Resources Inc. is an oil and gas exploration and development company building a portfolio of assets in the Commonwealth of Independent States ("CIS"). The company is incorporated in Cayman Islands and its head office is in Jersey.

Zoltav has a 100 per cent. interest in the Koltogor Licence located in the Khantiy-Mansisk Autonomous Okrug of Western Siberia. The Koltogor Licence contains the Koltogor oil discovery with proved plus probable reserves of 75,158,000 barrels of oil. Zoltav is engaged in an appraisal programme of the Koltogor oil field with a view to developing the field for commercial oil production.

Zoltav announced on 16 December 2013 that it had entered into a conditional agreement with Bandbear Limited ("Bandbear"), currently a 29.1 per cent shareholder in Zoltav, to acquire the entire issued share capital of Royal Atlantic Energy (Cyprus) Limited ("Royal Atlantic Energy") for a total consideration of US$180 million. On 22 May 2014 the Company and Bandbear entered into a deed of amendment such that the US$180 million consideration is to be satisfied through the issue of 38,263,095 new Ordinary Shares (equivalent to US$61.22 million), the assumption of a RUB2.4 billion debt facility (approx. US$68 million (of which US$59.84 million has been drawn down)) provided by Sberbank and the payment of US$58.94 million in cash.

Royal Atlantic Energy, through its wholly-owned subsidiary Diall Alliance LLC ("Diall Alliance"), holds the Bortovoy Licence, a 3,215 square kilometre licence containing a number of gas fields in the West and East of the Bortovoy Licence area and a processing plant located in the West of the Bortovoy Licence area. The Bortovoy Licence, located in the Saratov Oblast of the Russian Federation, has proven and probable reserves of 21.2 billion cubic metres (approximately 778.1 billion cubic feet) of gas and 3.9 million barrels of oil and condensate (a total of 137.4 mmboe (based on a gas conversion factor of 1,000 m3 = 158.8 bbls)) and produced 392.6 million cubic metres (approximately 13.9 billion cubic feet) of gas and 281.9 thousand barrels of condensate and oil in 2013 (a total of 2.8 mmboe). Zoltav believes there is considerable upside potential from a number of prospects within the Bortovoy Licence area and scope for increased production through the construction of additional facilities.

The Bortovoy Licence came into effect upon its registration by the Ministry for Natural Resources of the Russian Federation on 13 January 2000, and is valid until 12 January 2025 (inclusive).

In order to meet the conditions of the acquisition, the Company has entered into conditional Subscription Agreements with ARA Capital, the Company's largest shareholder, Crediton Invest Limited and Matteson Overseas Limited pursuant to which each of them have agreed to subscribe for US$45.615 million, US$10.166 million and US$10.166 million, respectively, for Ordinary Shares at US$1.6 to provide working capital to fund the work programme on the Bortovoy Licence and the Koltogorsky Production Licence.

The acquisition constitutes a reverse takeover under Rule 14 of the AIM Rules.

DETAILS OF SECURITIES TO BE ADMITTED INCLUDING ANY RESTRICTIONS AS TO TRANSFER OF THE SECURITIES (i.e. where known, number and type of shares, nominal value and issue price to which it seeks admission and the number and type to be held as treasury shares):

141,290,386 Ordinary Shares of US$0.20 each

CAPITAL TO BE RAISED ON ADMISSION (IF APPLICABLE) AND ANTICIPATED MARKET CAPITALISATION ON ADMISSION:

52,812,500 Ordinary Shares at US$1.6 per Ordinary Share to raise US$65.95 million*.

Approximate market capitalisation of US$226.1 million (£141.3 million*) on Admission at the Subscription Price.

* An exchange rate of US$1.6:GBP1.00 was agreed in the Subscription Agreements and the Acquisition Agreement, and is used to convert all US$ amounts to GBP throughout this announcement.

PERCENTAGE OF AIM SECURITIES NOT IN PUBLIC HANDS AT ADMISSION:

83.96%

DETAILS OF ANY OTHER EXCHANGE OR TRADING PLATFORM TO WHICH THE AIM COMPANY HAS APPLIED OR AGREED TO HAVE ANY OF ITS SECURITIES (INCLUDING ITS AIM SECURITIES) ADMITTED OR TRADED:

Not applicable

FULL NAMES AND FUNCTIONS OF DIRECTORS AND PROPOSED DIRECTORS (underlining the first name by which each is known or including any other name by which each is known):

Symon Roderick Drake-Brockman (Executive Chairman)

Stephen (Steve) Jonathan Lowden (Non-executive Director)

Michael Francis Lombardi (Non-executive Director)

Alastair Muir Ferguson (Non-executive Director)

Marcus James Rhodes (Non-executive Director)

FULL NAMES AND HOLDINGS OF SIGNIFICANT SHAREHOLDERS EXPRESSED AS A PERCENTAGE OF THE ISSUED SHARE CAPITAL, BEFORE AND AFTER ADMISSION (underlining the first name by which each is known or including any other name by which each is known):

Before Admission

After Admission

NAMES OF ALL PERSONS TO BE DISCLOSED IN ACCORDANCE WITH SCHEDULE 2, PARAGRAPH (H) OF THE AIM RULES:

Pemberton Asset Management Services (UK) Limited

BMO Capital Markets Limited

(i) ANTICIPATED ACCOUNTING REFERENCE DATE

(ii) DATE TO WHICH THE MAIN FINANCIAL INFORMATION IN THE ADMISSION DOCUMENT HAS BEEN PREPARED (this may be represented by unaudited interim financial information)

(iii) DATES BY WHICH IT MUST PUBLISH ITS FIRST THREE REPORTS PURSUANT TO AIM RULES 18 AND 19:

(i) 31 December

(ii) 31 December 2013

(iii) 30 September 2014; 30 June 2015; and 30 September 2015

EXPECTED ADMISSION DATE:

18 June 2014

NAME AND ADDRESS OF NOMINATED ADVISER:

Shore Capital & Corporate Limited

NAME AND ADDRESS OF BROKER:

Shore Capital Stockbrokers Limited

OTHER THAN IN THE CASE OF A QUOTED APPLICANT, DETAILS OF WHERE (POSTAL OR INTERNET ADDRESS) THE ADMISSION DOCUMENT WILL BE AVAILABLE FROM, WITH A STATEMENT THAT THIS WILL CONTAIN FULL DETAILS ABOUT THE APPLICANT AND THE ADMISSION OF ITS SECURITIES:

Copies of this document will be available free of charge during normal business hours on any day (except Saturdays, Sundays and public holidays) at the offices of Pinsent Masons LLP, 30 Crown Place, London, EC2A 4ES, United Kingdom from the date of this document for a period of at least one month from Admission. This Document is also available on the Company's website at www.zoltav.com

DATE OF NOTIFICATION:

12 June 2014

NEW/ UPDATE:

UPDATE