Petro Matad Regulatory News (MATD)

1 February2017

Petro Matad Limited

("Petro Matad" or the "Company")

Completion of Reassignment of Interests in Blocks IV and V

Petro Matad is pleased to report that all contractual and regulatory requirements in relation to Shell's affiliate company (BG Mongolian Holdings Limited - "BGMH"), exit from Blocks IV and V have been completed and accordingly Shell's affiliate has officially exited from the blocks. Petro Matad can therefore reconfirm that it now holds 100% of Blocks IV and V, through its wholly owned subsidiaries. Receipt of the contractually agreed $5 million final settlement amount as per the conditions under our previous announcement of 5 August 2016, has been received today from Shell's affiliate.

Enquiries:

Petro Matad Limited

Ridvan Karpuz, CEO +97 670 141 099 / +97 675 751 099

NOMAD and Broker

Stockdale Securities Limited

Richard Johnson / David Coaten +44 (0)20 7601 6100