Update on the Petraco refinancing

20 April 2010

Urals Energy Public Company Limited

('Urals Energy' or the 'Company')

Update on the Petraco refinancing

Further to the announcement on 12 April 2010 relating to the refinancing of the indebtedness owed by the Company to Petraco Oil Company Limited ("Petraco"), Urals Energy today confirms that, subject to a waiver of the pre-emptive rights by the Company's shareholders at the next Extraordinary General Meeting (notice of which was mailed to all shareholders on 14 April 2010), in accordance with the Restructuring Agreement (as defined in the announcement of 12 April 2010) Petraco will convert US$2.0 million of its existing outstanding indebtedness into 8,693,006 new Urals Energy shares. In addition the Company will issue warrants to Petraco to acquire 12,576,688 new Urals Energy shares.

These figures have been calculated using a volume weighted average price of 17.278663 pence per Urals Energy share and an exchange rate of £1.00 to $1.5338.

The extraordinary general meeting is scheduled to take place at 10.00 am local time at Evagoras Building Office, 34 3rd Floor, 31 Evagorou Avenue, Nicosia, Cyprus

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