Update of Petraco debt repayments

7th October 2010

Urals Energy Public Company Limited

("Urals Energy" or the "Company")

Update of Petraco debt repayments

Urals Energy, the Russian focused oil & gas exploration and production company, announces that Petraco Oil Company Limited ("Petraco") has agreed to delay the first repayment due under the debt restructure agreement with Petraco, details of which were announced on 12 April 2010.

This repayment was originally due on 30 September 2010 and Petraco have agreed with the Company to vary the repayment schedule so that the payment will now be made not later than 15 November 2010.

In view of Petraco's relationship with the Company, and in particular the fact that Ingeborg Srenger is a director of both Urals and Petraco, this variation is considered to be a related party transaction pursuant to Rule 13 of the AIM Rules for Companies.. The Company's directors (with the exception of Ingeborg Srenger), having consulted with the Company's nominated adviser, Allenby Capital Limited, consider that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.

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