Settlement of arbitration with Mr Rovneiko

Urals Energy Public Company Limited

('Urals Energy' or the 'Company')

Settlement of arbitration with Vyatcheslav Rovneiko

Urals Energy, the independent exploration and production company with operations in Russia, is pleased to announce that its longstanding dispute with a former Director and manger of the Company Vyatcheslav Rovneiko has been settled in Urals' favour.

As previously announced to the market, the Company instituted arbitration proceedings in London against a former Director and manger of the Company Vyatcheslav Rovneiko to recover amounts advanced to him pursuant to a Loan Agreement, the principal sum of which was US$3,730,000.

Following hearings in the arbitration, the arbitrator issued a Partial Final Award on Preliminary Issues on 21 June 2012 pursuant to which the respondent is liable to repay to the Company the entire principal sum due under the Loan Agreement, plus interest. The final quantification of the respondent's liability to pay accrued interest and the question of costs remain to be determined by the Tribunal within the next several weeks.

The case was vigorously defended by V. Rovneiko who asserted several defences in order to avoid his legal liability to the Company. However the Company has prevailed and intends to seek all available measures to recover the amount owing to it, including seizing assets of the former Director if that is necessary.

CEO Alexei Maximov commented: "We are pleased with the outcome of the arbitration, recognising the former manager's obligation to the Company and are happy to report to our shareholders that yet another legacy issue has been resolved as had been promised by the management in the beginning of 2010".

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