Financing Update

2 January 2019

PetroNeft Resources plc

(“PetroNeft” or the “Group” or the “Company”)

Financing Update

PetroNeft (AIM: PTR) an oil & gas exploration and production company, operating in the Tomsk Oblast, Russian Federation, and 50% owner and operator of Licences 61 and 67, provides a financing update.

Loan facility

In January 2018 PetroNeft agreed a loan facility for up to US$2 million with Swedish company Petrogrand AB (“Petrogrand”) secured on the assets of PetroNeft. The loan facility was fully drawn down and was used to finance the drilling of the successful C-4 well in 2018 and for general corporate purposes. The loan matured on 31 December 2018, however discussions are ongoing to agree an extension and an increase to the facility. We will update shareholders in due course.

As previously disclosed, due to Petrogrand being an associate (as defined in the AIM Rules and ESM Rules) of Mr Maxim Korobov, a PetroNeft director, the loan facility is considered to be a related party transaction under the AIM Rules and ESM Rules. In addition, Pavel Tetyakov, Chief Executive and director of Petrogrand, is also Vice-President of Business Development in PetroNeft and General Director, Stimul-T, the operator of Licence 61.

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