Urals Energy Plc Regulatory News (UEN)

14 December 2010

Urals Energy Public Company Limited

('Urals Energy' or the 'Company')

Notice of EGM

Urals Energy, the Russian focused oil & gas exploration and production company, announces that a notice convening an EGM, to be held at 11:00 a.m. on 30 December 2010 at the registered office of the Company at Evagoras Building, Office 34, 3rd floor, 31 Evagorou Avenue, Nicosia, CY-1066, Cyprus (the "EGM") is being posted to shareholders today.

The Company is looking to undertake a capital raising to provide it with additional funds to further enhance the development of its business (the "Proposed Capital Raising"). The Proposed Capital Raising will be effected by means of a placing of up to 65,000,000 new ordinary shares in the Company with a nominal value of US$0.0063 each (the "Placing Shares") at a placing price to be determined.

The directors of the Company (the "Directors") have convened the EGM at which shareholders will be asked to consider and, if thought fit, pass the resolutions proposed at the EGM (the "Resolutions"). If progressed the Proposed Capital Raising will be conditional, inter alia, on the admission of the Placing Shares issued pursuant to the Proposed Capital Raising to trading on AIM, a market operated by the London Stock Exchange plc, ("Admission").

In order to prepare for the Proposed Capital Raising and to allow the Company to undertake the Proposed Capital Raising quickly, the Directors believe it to be prudent for Shareholders to give the Directors the necessary authority to issue the Placing Shares.

The Directors believe that there is an opportunity to raise funds from a small number of institutional and other investors at the present time. The Directors have therefore decided to seek authority to issue the Placing Shares to allow a fundraising by way of the Placing following a limited and targeted marketing exercise, rather than by offering all Shareholders the opportunity to acquire further shares. The Directors believe that the additional cost and delay incurred in connection with any such offer to shareholders (including, inter alia, the need to have any offer document approved by relevant regulatory authorities) would not be in the best interests of the Company.

The net proceeds of any Proposed Capital Raising will be used to provide the Company with additional working capital and assist the Company in developing its operations at Arcticneft and Petrosakh.

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