Urals Energy Plc Regulatory News (UEN)

4June 2010

Urals Energy Public Company Limited

('Urals Energy' or the 'Company')

Drilling Update, Notice of Results and Director's Dealings

DrillingUpdate

Following the trading update made by the Company on 26 May 2010 the board of Urals (the "Board") is pleased to announce that well 35b at Petrosakh, the first sidetrack well, has now been spudded.

Notice of Preliminary Results

The Board is also pleased to announce that it will be announcing its preliminary results for the year ending 31 December 2009 on 17 June 2010.

Directors' Dealings

On 2 June 2010 the Company was notified that Finfund Limited has exercised its rights to acquire 13,000,000 existing Urals shares with a nominal value of US$0.0063 from entities beneficially owned by two directors (being Leonid Y. Dyachenko and Aleksey V. Ogarev) and another significant shareholder (being Vyacheslav V. Rovneiko) (together the "Shareholders") pursuant to a share pledge agreement dated 26 November 2007 (the "Share Pledge Agreement").

The Share Pledge Agreement was entered into by entities beneficially owned by the Shareholders and secured various obligations of the Company under the terms of a sale and purchase agreement dated 26 November 2007 (the "SPA") relating to the acquisition by Urals of Taas-YuriakhNeftegazodobycha (the "Acquisition"). Such obligations included certain pledge fees which Finfund Limited are now claiming are owed by the Company. Based on Finfund Limited 's alleged defaults by the Company in respect of such pledge fees, Finfund Limited has chosen to exercise its rights under the Share Pledge Agreement to acquire 13,000,000 shares in the Company from entities beneficially owned by the Shareholders (the "Pledged Shares"). The Shares beneficially owned and transferred to Finfund Limited as a result of such exercise of its rights against each Shareholder are as follows:

In consequence of the exercise of Finfund Limited's rights as described above, any liability owed by Urals to Finfund Limited would be reduced by the value of the shares transferred. The Company understands however that this liability (equal to the transferred share value), whilst reducing any obligation of the Company to Finfund Limited, has been transferred by Finfund Limited to the Shareholders in proportion to the number of shares transferred by them under the Share Pledge Agreement. The Company intends to enter discussions with both Finfund Limited and the Shareholders shortly in relation to the settlement of these outstanding claims.

The Company has also been notified by Finfund Limited that it has subsequently sold the 13,000,000 Pledged Shares to VR Trade Limited, a company incorporated in the British Virgin Islands. The Board believe that the Pledge Shares represent VR Trade Limited's entire interest in the Company's issued shares and, in the event that this is the case, VR Trade Limited have a notifiable interest in 13,000,000Urals shares with a nominal value of US$0.0063in the Company, representing approximately 6.90 per cent of the Company's issued share capital.

Following the transfer of the Pledged Shares, the number of Urals shares held by the following directors is as follows:

In addition, Vyacheslav V. Rovneiko has notified the board of Urals that as a result of the transfer of the Pledged Shares he now has has a beneficial notifiable interest in 11,374,963 Urals shares with a nominal value of US$0.0063in the Company representing approximately 6.03 per cent. of the Company's issued share capital.

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