Tanker shipment and Petraco payment

9 November 2011

Urals Energy Public Company Limited

("Urals Energy" or the "Company")

Tanker shipment and Petraco payment

Urals Energy, the independent exploration and production company with operations in Russia, is pleased to announce that the shipment of the tanker from Arcticneft, scheduled for late October 2011, has been successfully completed. 28,982 tons of crude oil (227,525 bbls), representing a 11.4% increase on 25,999 tons in 2010, were loaded and exported in October in line with the Company's operational plans.

Following the tanker shipment, the Company has made a payment of $8.0 million to Petraco Oil Company Limited ("Petraco") in line with the restructured terms of the debt repayment agreement with Petraco, details of which were announced on 3 August 2011. The payment covered the October and November tranches and fulfilled Company's obligations for 2011. The payment reduced total amount of outstanding debt to $19.9 million. The Board remains confident of meeting the repayment schedule as agreed, as well as continuing the Company's close relationship with Petraco. Remaining net proceeds from the sale in the amount of $5.1 million will be used for development of Company's assets and financing of working capital.

Commenting on this update CEO Alexei Maximov said: 'The Board continues to see operational progress with continuing production from both Arcticneft and Petrosakh. Financially, we have made a considerable progress by reducing outstanding debt owed to Petraco and strengthening our balance sheet. With a supportive macro-outlook for oil underpinning growth forecasts, the Board maintains its focus on maximising revenues from both producing assets, whilst exploring further M&A opportunities in the sector. Against that backdrop we remain confident about the future prospects of Urals Energy.'

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