Nostra Terra Regulatory News (NTOG)

AIM: NTOG

11 May 2012

Nostra Terra Oil and Gas Company plc

("Nostra Terra" or the "Company")

Entry into loan facility of up to US $3 million

Nostra Terra, the AIM oil and gas producer with projects in the USA, announces that it has entered into a loan facility of up to US $3 million (the "Loan Facility"), with YA Global Master SPV Ltd ("YA Global"), an investment fund managed by Yorkville Advisors LLC.

The initial advance on the loan facility will be US$1 million ("Initial Advance") and the Company may request further advances of up to US$2 million, such advances to be at the discretion of YA Global. The Loan Facility is subject to interest at a rate of 10% per annum and is for a term of 360 days. The Loan Facility is supported by the Standby Equity Distribution Agreement ("SEDA®") between Nostra Terra and YA Global announced on 7 September 2011. The Initial Advance together with the interest thereon will be repaid in ten monthly installments commencing in July 2012 with the repayment schedule to be adjusted in the event further advances are drawn down.

The proceeds from the Initial Advance will be used to augment the Company's existing leasing programme, as well as providing additional capital for Nostra Terra's expanding portfolio.

Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:

"The Loan Facility, alongside our existing cash resources and the SEDA, gives us a range of funding options to continue building production and reserves. We believe the Company is at an exciting and dynamic stage and it is key for us to keep dilution to a minimum at this point."

Brian Kinane, Managing Member, Yorkville Advisors (UK), commented:

"We are pleased to assist Nostra Terra in executing its existing leasing programme. We recognise the potential of the Company's assets and the highly experienced management team."

For further information, visit www.ntog.co.uk or contact:

Nostra Terra Oil and Gas Company plc

Matt Lofgran, CEO

mlofgran@ntog.co.uk Telephone: +1 480 993 8933

Shore Capital & Corporate Limited (Nominated Adviser)

Bidhi Bhoma/ Toby Gibbs Telephone: +44 (0)20 7408 4090

Alexander David Securities Ltd

David Scott / Bill Sharp Telephone: +44 (0)20 7448 9800

Lothbury Financial Services Limited

Gary Middleton / Michael Padley Telephone: +44 (0)20 7868 2010

Notes:

·; This is the second facility Nostra Terra has agreed with YA Global Master SPV Ltd, which is advised by Yorkville Advisors, LLC.

·; In September 2011 Nostra announced a £5m Standby Equity Distribution Agreement with YA Global Master SPV Ltd for a period of 3 years which can be increased to £10m at any time during that period.

·; YA Global Master SPV Ltd has provided similar funding arrangements to Gulf Keystone Petroleum and Xcite Energy amongst others.

·; The Nostra Terra oil production portfolio contains projects in Oklahoma, Texas and Colorado

·; The USA is currently going through an oil boom, cutting its dependence on imported oil, due to horizontal drilling bringing old fields back to production.

Announcements made by the Company are available automatically by email to those who register at www.ntog.co.uk.