Acquisition of Refinery Site

PetroNeft Resources plc
("PetroNeft")

Acquisition of Refinery Site

PetroNeft is pleased to announce that it has acquired a site for a Mini-Refinery at Pervomayka in the Kolpashevo District of the Tomsk Oblast, south of the Company's current operational area in Licence 61.

The 7.5 hectare site is located approximately 200 km northwest of the city of Tomsk at the Transneft pipeline Pervomayka pumping station in the Kolpashevo District. The Regional Administration has given permission for the use of the land for a Mini-Oil-Refinery. Some site clearance and preliminary ground works were carried out by the previous owner and the off-take flange for the Transneft pipeline connection is already in place.

The Company's medium term strategy is to participate in both the upstream and downstream segments of the oil and gas business in Russia. Vertical integration will ensure the Company of a reliable outlet for its domestic oil sales as well as allow it to participate in certain tax benefits offered to the refining sector. The end result will be an improved margin on each barrel of production run through the facility. Acquisition of the Pervomayka site gives the Company a very viable option, but not an obligation, to enter into the downstream business at the appropriate time.

The Company's current focus remains the development of the reserves in Licence 61, while seeking new acquisitions and investment opportunities to broaden the Company's portfolio and add value to its existing reserves.

Reserves Report

The reserves report for Licence 61, as at 31 December 2007, is being finalised by Ryder Scott and is expected to be published within the next month

Dennis Francis, Chief Executive Officer of PetroNeft commented:

"This acquisition gives us the option of improving our margins and developing alternate income streams in the future; thereby, allowing PetroNeft to generate maximum value from its business in Licence 61 and provide important product supplies in the Tomsk Region."

For further information, contact:

Dennis Francis, CEO, PetroNeft Resources plc (Houston)
+1 713 988 2500

Paul Dowling, CFO, PetroNeft Resources plc (Dublin)
+353 144 33720

Desmond Burke, Director Investor Relations, PetroNeft Resources plc (Ireland)
+353 52 53226

John Frain/Brian Garrahy, Davy
+353 1 679 6363

Damien Mauvais, Natixis Bleichroeder
+44 207 220 5184

Nick Elwes/Paddy Blewer/Simon Whitehead, College Hill (UK)
+44 207 457 2020

Forward Looking Statements

This announcement contains forward-looking statements. These statements relate to the Company's future prospects, developments and business strategies. Forward-looking statements are identified by their use of terms and phrases such as "believe", "could", "envisage", "potential" "estimate", "expect", "may", "will" or the negative of those, variations or comparable expressions, including references to assumptions.

The forward-looking statements in this announcement are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. These forward-looking statements speak only as at the date of this announcement.