AMI Agreement

August 14, 2008

PetroNeft Resources plc

AMI Agreement

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 an Area of Mutual Interest agreement ("AMI") with Arawak Energy Limited ("Arawak") to jointly pursue new opportunities in the West Siberian Oil and Gas basin.

Arawak, which is listed on the London and Toronto stock exchanges, is a multi-asset oil and gas production, development and exploration group which has been active in the FSU since 1998, and has operations in Kazakhstan, Russia and Azerbaijan.

The AMI is structured to enable the two companies to work together on potential opportunities in the Western Siberia Oil and Gas basin where PetroNeft has its main operations.

Under this agreement PetroNeft will have right of first refusal to be the operator of any joint projects in this basin.

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

"We look forward to working with the team at Arawak in Western Siberia and we feel that the combined expertise and resources of the two companies will facilitate the acquisition and development of new opportunities in the region."

For further information, contact:

Dennis Francis, CEO, PetroNeft Resources plc,
+353 1 4433720

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.