Urals Energy Public Company Limited: 2009 Interim Results and Restoration of Trading on AIM

Urals Energy also announces that the suspension of trading of the Company's shares on AIM, which commenced on 30 June 2009, will be lifted at 7am (GMT) on Friday 18 December 2009 and trading in the Company's shares will re-commence thereafter. The restoration of trading follows notification of the Company's annual audited accounts for the year ended 31 December 2008 and interim results for the six months ended 30 June 2009. The Company is now in compliance with AIM Rules 18 and 19.

Highlights Strategy

* Following divestiture of Dulisma and Taas Yuriakh, Urals now well positioned to recommence development programmes on two producing fields, Arcticneft and Petrosakh.
* Restructuring of Petraco indebtedness is Company's immediate priority as it seeks to advance its strategy.

Operations

* Key development projects put on hold and subsequent to period end divested Dulisma and Taas Yuriakh to Sberbank for full discharge of $630 million debt.
* Average daily production for the period was 4,251 BOPD (including production at Dulisma 1,780 BOPD).

Financial

* Gross revenues decreased to US$15.1 million from $110.7 due to divestiture of Komi assets in April 2008 and Chepetskoye NGDU in February 2009 and decrease of oil prices.
* Net debt to Petraco was $33.3 million at 17 December 2009 ($45.6 million at 30 June 2009).
* Commenced significant cost reduction program.
* First export loadings at Petrosakh and Arcticneft were made in July and October 2009, respectively.

Corporate

* Completed significant corporate transactions including divestiture of Dulisma and Taas Yuriakh post period end.
* Significant Board and Senior Management changes including appointment of Alexei Maximov as Chief Executive Officer and a Director post period end.

Outlook

* Main priority is to agree restructuring of Petraco indebtedness.
* Concentrate on early production increase from existing wells.
* Complete geological studies in 2010 to develop drilling programmes.
* Look for possible corporate transactions to derive maximum value to shareholders.

Alexie Maximov, Chief Executive, commented:
"We are pleased to publish our Interim Results and re-commence trading on the London Stock Exchange.
The first half of 2009 was characterized by complex and lengthy negotiations with Sberbank which have finally come to a successful resolution. Simultaneously we introduced a significant cost cuttings programme which reduced our cash burn and will help us lift liquidity constrain going forward.
We are now focused on renegotiating our remaining debt with Petraco, increasing production from our remaining assets and evaluating corporate opportunities to increase shareholder value”.

Urals Energy Public Company Limited (‘Urals Energy’) has held Annual General Meeting today.
Urals Energy announces that all resolutions proposed at its Annual General Meeting held today in Nicosia, Cyprus, were duly passed.

18 December 2009