US$80 million Debt Facility

July 9, 2008

PetroNeft Resources plc

US$80 million Debt Facility

PetroNeft Resources plc ('PetroNeft' or 'the Company'), owner and operator of Licence 61, Tomsk Oblast, Russian Federation, is pleased to announce that it has entered into a mandate agreement with Standard Bank plc for a US$ 80 million debt facility to finance PetroNeft's development activities within Licence 61. 

The funds will initially be applied to the development of the Lineynoye and West Lineynoye oil fields, including pipeline construction, field infrastructure and initial production drilling necessary to achieve first oil production in 2009. Longer term, and subject to appropriate technical and credit approvals, the facility may also be used to fund subsequent developments of discoveries in Licence 61, such as the Tungolskoye oil field and recently announced Korchegskaya discovery.

The facility, which remains subject inter alia to final documentation and credit approval by Standard Bank, is structured as a Development Loan that converts into a Reserved Based Lending Facility.  The drawdown potential under the facility, which is for an initial period of four years, will be based on the value of approved development and producing assets.  Upon approval by Standard Bank, the facility may also be applied to undertake suitable acquisitions.

Standard Bank have also agreed to provide treasury management and hedging arrangements to assist PetroNeft in managing its foreign currency and interest rate exposures.

Dennis Francis, Chief Executive Officer of PetroNeft Resources plc commented:

"We are delighted to announce this mandate agreement with Standard Bank. This is a major milestone on the road to PetroNeft's objective of achieving production in 2009 and building a long term oil and gas business in Russia. We look forward to a long and fruitful relationship with the team at Standard Bank."

For further information, contact:

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

Paul Dowling, CFO, PetroNeft Resources plc
+353 1 4433720

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

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

Jonathan Marren/Matt Goode, KBC Peel Hunt
+44 207 418 8900

Nick Elwes/Paddy Blewer, College Hill
+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.