New Oil Field discovery at Arbuzovskaya

PetroNeft Resources plc (“PetroNeft” or the “Company”)

New Oil Field discovery at Arbuzovskaya

PetroNeft Resources plc (AIM: PTR), the owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, is pleased to announce the discovery of a new oil field at Arbuzovskaya in Licence 61.

Highlights:

• Arbuzovskaya No. 1 well discovers oil in main Upper Jurassic target

• Approximately five metres of net oil pay in J1 interval

• Open hole inflow test of 289 bopd (unstimulated)

• Drilling continuing with secondary targets of Middle and Lower Jurassic

Arbuzovskaya No. 1 well

The Arbuzovskaya No. 1 well at the Arbuzovskaya (formerly Varyakhskaya) prospect located 10 kilometres east of the Lineynoye oil field in Licence 61 was spudded on 10 October 2010. The Upper Jurassic J1, oil reservoir horizon was intersected at 2,566 metres measured depth. Logs indicate that the J1 interval consists of 19.0 metres of sandstone and shale. Approximately 5.0 metres of the upper most part of this interval is considered to be continuous net pay with good reservoir properties and oil saturation throughout. An open hole test was conducted over this interval and tested at a pro-rated inflow of 289 bopd unstimulated. The oil is high quality with an API gravity of 40 degrees which is consistent with other fields in the Licence area.

The well will now be drilled to basement, at approximately 2,900 metres, targeting higher risk secondary objectives in the Middle and Lower Jurassic intervals. The well should be completed by the end of November at which stage the Company will update shareholders with the final results of the well as part of the operations update due around that time. This discovery well adds a fifth oil field to the northern group of fields and will be included in Phase 2 of the development.

Arbuzovskaya is the first well of a five well exploration programme designed to potentially double the Company’s 2P reserve base within the next 12 months.

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

“We are delighted to commence our new exploration campaign with the discovery of a fifth oil field at Licence 61. This is an especially important discovery, because of the good flow rate it confirms the wider prospectivity of a number of additional structures east of the existing producing Lineynoye oil field which can be easily tied in to the central processing facilities and pipeline at Lineynoye.”

For further information, contact:

Dennis Francis, CEO, PetroNeft Resources plc	+1 713 988 2500
Paul Dowling, CFO, PetroNeft Resources plc	+353 1 443 3720
John Frain/Brian Garrahy, Davy (NOMAD and Joint Broker)	+353 1 679 6363
Charles Berkeley/Henry Fitzgerald-O’Connor, Canaccord Genuity (Joint Broker)	+44 207 0506500
Martin Jackson/Kate Lehane, Citigate Dewe Rogerson	+44 207 6389571
Joe Murray/Ed Micheau, Murray Consultants	+353 1 498 0300

The information contained in this announcement has been reviewed and verified by Mr. Dennis Francis, Director and Chief Executive Officer of PetroNeft, for the purposes of the Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in March 2006. Mr. Francis holds a B.S. Degree in Geophysical Engineering and a M.S. Degree in Geology from the Colorado School of Mines. He has also graduated from the Harvard University Program for Management Development. He is a member of the American Association of Petroleum Geologists and the Society of Exploration Geophysicists. He has over 35 years experience in oil and gas exploration and development.

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. No statement in this announcement is intended to constitute a profit forecast or profit estimate for any period.

Glossary

1P	Proved reserves according to SPE/PRMS standards
2P	Proved and probable reserves according to SPE/PRMS standards
3P	Proved and probable and possible reserves according to SPE/PRMS standards
bopd	Barrels of oil per day
C1	Proved resources according to Russian standards
C2	Probable resources according to Russian standards
C3	Possible resources according to Russian standards
km	Kilometres
mmbo	Million barrels of oil
P3	Possible reserves according to SPE/PRMS standards