ZOL.L Regulatory News (ZOL)

Embargoed: 0800hrs 18 June 2014

Zoltav Resources Inc.

("Zoltav" or the "Company")

Completion of Acquisition and Admission to Trading on AIM

Zoltav (AIM:ZOL), the CIS-focused oil and gas exploration and production company, is pleased to announce the completion of the acquisition of Royal Atlantic Energy (Cyprus) Limited ("Royal Atlantic Energy") (the "Acquisition") and the admission at 8 a.m. today of its enlarged issued share capital to trading on the AIM market of the London Stock Exchange.

Highlights

· Acquired 100 per cent. interest in the Bortovoy Licence in the Saratov Oblast of the Russian Federation - 3,215 square kilometre area containing a number of productive gas fields, a processing plant and significant exploration prospectivity

· Bortovoy Licence contains 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

· Considerable upside potential from additional prospects within the Bortovoy Licence area and scope for increased production through the construction of additional facilities

· Raised US$65,946,418 from ARA Capital, Crediton Invest and Matteson overseas through the issue of 41,216,511 Ordinary Shares at US$1.60 (100 pence)

Enlarged Group

Zoltav now holds a total of three licences - all within the Russian Federation. These are:

(1) 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.

(2) The Koltogor Exploration and Production 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 Exploration and Production 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 of the Koltogor oil field with a view to developing the field for commercial production.

(3) The Koltogor Exploration Licence 10, a 167 square kilometre area due west of the Koltogor Exploration and Production Licence on which Zoltav is engaged in an exploration and appraisal programme.

Subscription

The Company raised a total of US$65,946,418 through the issue of 41,216,511 Ordinary Shares at US$1.60 (100 pence). Subscriptions were received from ARA Capital (US$45.615 million for 28,509,375 Subscription Shares), Crediton Invest (US$10.166 million for 6,353,568 Subscription Shares) and Matteson Overseas (US$10.166 million for 6,353,568 Subscription Shares). An exchange rate of US$1.60: £1.00 was agreed in the Subscription Agreements.

Following completion of the Acquisition and Subscription, substantial shareholdings in the Company are now recorded as follows:

The Company now has a total of 141,290,386 Shares admitted to trading on AIM.

Capitalised terms used but not defined in this announcement have the same meaning as given to them in the Admission Document.

Commenting on the completion of the Acquisition Symon Drake-Brockman, Executive Chairman, said:

"I am delighted to announce the completion of Zoltav's second major oil and gas asset acquisition which adds both considerable reserves to the group as well as its first commercial gas and oil production.

"With this milestone achieved, we are focused on operations and in particular on ensuring that the gas processing plant in the Western area of the Bortovoy Licence is operating at full capacity while concurrently developing an exploration strategy for the highly prospective Eastern Fields of the Bortovoy Licence; as well as on our continuing appraisal of the Koltogor licences.

"In addition, we are constantly reviewing potential acquisition targets and will continue our acquisition strategy where we believe value can be achieved for shareholders."

Contacts:

About Zoltav

Zoltav is an oil and gas exploration and production company focused on acquiring assets in the CIS, particularly in the Russian Federation.

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 Exploration and Production 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 Exploration and Production 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 of the Koltogor oil field with a view to developing the field for commercial production.

Additionally, Zoltav holds Koltogor Exploration Licence 10, a 167 square kilometre area due west of the Koltogor Exploration and Production Licence on which Zoltav is engaged in an exploration and appraisal programme which includes targeting the Bazhenov shale formation from which the company has recovered oil.