ZOL.L Regulatory News (ZOL)

Embargoed: 0700hrs 12 March 2015

Zoltav Resources Inc.

("Zoltav" or the "Company")

Additional Russian Standard Reserves Registration

Zoltav (AIM:ZOL), the Russia and CIS-focused oil and gas exploration and production company, is pleased to announce that the Russian Federal Agency for Subsoil Use ("Rosnedra") has registered an additional 546 million barrels (mm bbls) of Russian standard C1 plus C2 oil reserves for the Koltogor Exploration and Production Licence (the "Koltogor E&P Licence"). The additional reserves take the total Russian standard C1 plus C2 oil reserves for the Koltogor E&P Licence and the neighbouring Koltogor Exploration Licence 10 ("Koltogor 10") to in excess of 1 billion barrels.

The registration of additional reserves was undertaken following the interpretation of 3D seismic acquired in 2014 which improved the understanding of the reservoir distribution in the Upper Jurassic formations.

Commenting on the registration of additional reserves, Alastair Ferguson, Executive Chairman, said:

"The interpretation of 3D seismic data from last year's programme has enabled the Company to re-map the reservoir distribution of the Koltogor oil field which we now understand to be a significantly bigger asset. With over a billion barrels of Russian standard reserves, the Koltogor licences contain the largest undeveloped oil discovery in the prolific Western Siberian oil province of Khantiy-Mansisk."

"Zoltav places great importance on its ability to add value to the acquisitions it makes. The high quality of our 3D acquisition and interpretation which resulted in the re-delineation of the field demonstrates the Company's operational capability."

"Zoltav's 100 per cent. interest in the licences places the Company in a very favourable position to advance the development of these fields. We are commencing the next phase in the appraisal programme which will in due course include appraisal drilling and testing in order to further define and prove the optimum method of extracting the hydrocarbons."

It should be noted that the Russian Federation Classification Scheme for reserves and resources is not directly comparable to the Petroleum Resources Management System ("PRMS") under which Zoltav reports the reserves and resources for its licences. C1 and C2 reserves under the Russian Federation Classification Scheme should not therefore be directly compared with Proved and Probable reserves under PRMS which may be significantly lower. The Company intends to commission an update of its reserves and resources under PRMS and will publish this upon completion, which is expected to be during Q3 2015.

The table below shows the reserves attributable to the Koltogor E&P Licence and Koltogor 10 under the Russian Federation Classification Scheme:

Russian standard reserves

Qualified person

The technical information in this announcement has been reviewed by Dr Alexander Sokolov, the Company's Director Exploration. Dr Sokolov has over 30 years' experience in the industry, having worked for Meggionneftegazgeologia (now part of TNK), the Siberian Oil Corporation, Sibir Energy plc and served as deputy director of the Russian State Institute for Geology and Development of Combustible Minerals (IGIRGI). He has also been a director of Chumpasneftedobycha (Heritage Oil). He has authored 25 publications and is a member of the Russian Society of Subsoil Use Experts.

Contacts:

About Zoltav

Zoltav is an oil and gas exploration and production company focused on acquiring and developing assets in the CIS.

Zoltav holds the Bortovoy Licence in the Saratov region of South Western Russia, a 3,215 square kilometre area along the northern margin of the Pre-Caspian basin, one of the largest hydrocarbon basins in the CIS.

The Bortovoy Licence contains a number of productive gas fields, a processing plant and significant exploration prospectivity. It holds Proved plus Probable reserves of 750 billion cubic feet (21.2 billion cubic metres) of gas and 3.9 million barrels of oil and condensate. In 2013 the Bortovoy Licence produced 13.9 billion cubic feet (392.6 million cubic metres) of gas and 300,000 barrels of condensate and oil.

Zoltav also holds the Koltogor E&P Licence, a 528 square kilometre area in the Khantiy-Mansisk Autonomous Okrug of Western Siberia, one of Russian's most prolific oil producing regions.

The Koltogor E&P Licence contains the Koltogor oil field with Proved plus Probable reserves of 75.2 million barrels of oil. Zoltav is engaged in an appraisal programme with a view to developing the field for commercial production.

Additionally, Zoltav holds Koltogor 10, a 167 square kilometre area due west of the Koltogor E&P Licence on which Zoltav is engaged in an exploration and appraisal programme.

For further information on Zoltav or to sign up for the news alert service visit: www.zoltav.com.

Glossary of defined terms

Russian reserves system

The Russian reserves system is based solely on the analysis of geological attributes. Explored reserves are represented by categories A, B, and C1; preliminary estimated reserves are represented by category C2; potential resources are represented by category C3; and forecasted resources are represented by categories D1 and D2. Natural gas reserves in categories A, B and C1 are considered to be fully extractable. For reserves of oil and gas condensate, a predicated coefficient of extraction is calculated based on geological and technical factors.

Category C1 reserves are computed on the basis of results of geological exploration work and production drilling and must have been studied in sufficient detail to yield data from which to draw up either a trial industrial development project in the case of a natural gas field or a technological development scheme in the case of an oil field.

Category C2 reserves are preliminary estimated reserves of a deposit calculated on the basis of geological and geophysical research of unexplored sections of deposits adjoining sections of a field containing reserves of higher categories and of untested deposits of explored fields. The shape, size, structure, level, reservoir types, content and characteristics of the hydrocarbon deposit are determined in general terms based on the results of the geological and geophysical exploration and information on the more fully explored portions of a deposit. Category C2 reserves are used to determine the development potential of a field and to plan geological, exploration and production activities.

Category C3 resources are prospective reserves prepared for the drilling of (i) traps within the oil-and-gas bearing area, delineated by geological and geophysical exploration methods tested for such area and (ii) the formation of explored fields which have not yet been exposed by drilling. The form, size and stratification conditions of the assumed deposit are estimated from the results of geological and geophysical research. The thickness, reservoir characteristics of the formations, the composition and the characteristics of hydrocarbons are assumed to be analogous to those for explored fields. Category C3 resources are used in the planning of prospecting and exploration work in areas known to contain other reserve bearing fields.

"barrel" or "bbl" is a stock tank barrel, a standard measure of volume for oil, condensate and natural gas liquids, which equals 42 US gallons.

"mm bbls" means million barrels of oil.