Petro Matad Regulatory News (MATD)

Petro Matad Limited ("Petro Matad" or the "Company")

Operational Update

Petro Matad announces that Mongolian geophysical contracting company Khet Co., Ltd ("Khet") commenced the acquisition of 200 km of 2D seismic on Blocks IV and V on 22 October 2013 and has now completed approximately fifty per cent. of the planned acquisition. This seismic programme is designed to provide detailed coverage over two prospect areas identified from earlier seismic and is expected to confirm at least two locations for drilling in 2014. Whilst the commencement of fieldwork was slightly delayed, seismic acquisition is progressing well, is expected to continue for a further four weeks and will be completed prior to the winter shutdown. Processing of the data acquired to-date is already in progress.

The re-interpretation of the data in the northern part of Block XX is now largely complete and confirms that none of the wells drilled in Block XX in 2010 and 2011 was in the three graben areas identified by the 2008 ISIS CPR to be on trend with the producing fields in Block XIX to the north. Possible extension of those fields into Block XX therefore remains untested. Scout data from Block XIX is being integrated with the Company's existing database in order to evaluate how best to pursue this potential. Additionally, the re-interpretation work also identified a number of similar basins in the southern part of Block XX and seismic to further delineate these basins is planned for 2014.

Technical information in this news release has been reviewed by Mr Ridvan Karpuz. Mr Karpuz is a Petroleum Geologist with over 20 years' experience in oil and gas exploration.

About Petro Matad Limited

Petro Matad is the parent company of a group focussed on oil exploration, as well as future development and production in Mongolia. The Group holds the sole operatorship of three Production Sharing Contracts with the Government of Mongolia. Block XX has an area of 10,340km² in the far eastern part of the country. Blocks, IV and V are located in central Mongolia. Block IV covers approximately 29,000km² and Block V approximately 21,150km².

Petro Matad Limited is incorporated in the Isle of Man under company number 1483V. Its registered office is at Victory House, Prospect Hill, Douglas, Isle of Man, IM1 1EQ.

Further Information:

Petro Matad Limited

George Watkins, Chairman

+976 11 331099

NOMAD and Joint Broker

Westhouse Securities Limited

Richard Baty / Ian Napier

+44 (0)20 7601 6100

Joint Broker

Macquarie Capital (Europe) Limited

Steve Baldwin / Nicholas Harland

+44 (0) 20 3037 2000