ZOL.L Regulatory News (ZOL)

Embargoed: 09.30hrs 8 May 2014

Zoltav Resources Inc.

("Zoltav" or the "Company")

Operational Update

Zoltav (AIM: ZOL), the CIS-focused oil and gas exploration and development company, provides an update on operations during the 2013/14 drilling season.

Highlights

· Completed programme to acquire 466 square kilometres of 3D seismic and 71 kilometres of 2D seismic data across the Company's Koltogor Licence in Khantiy-Mansisk, Western Siberia (the "Koltogor Exploration and Production Licence") on 21 April 2014.

· Well 141 on the Koltogor Exploration and Production Licence was re-entered and successfully tested. The well flowed 16 cubic metres of oil per day (approximately 101 barrels) from the Upper Jurassic formation on a 10 millimetre choke, confirming the commerciality of the field and corroborating previous test data from 2009.

· Achieved zero-cost extension of the neighbouring Koltogor 10 Exploration Licence ("Koltogor 10") - immediately to the west of the Koltogor Exploration and Production Licence - through to 31 December 2015.

· Well 103 on Koltogor 10 was re-entered and discovered oil in the Upper Jurassic formation. The well flowed 3.4 cubic metres of oil per day (approximately 21 barrels) from the Upper Jurassic formation without stimulation.

· Well 103 also recovered oil from the Bazhenov shale formation demonstrating the potential of this zone.

Koltogor Exploration and Production Licence

Zoltav engaged Russia's largest geophysical company, GEOTECH Holding, to carry out a 3D seismic survey (and limited 2D seismic survey) of the Koltogor Exploration and Production Licence. The programme began in November 2013 when the winter drilling season commenced and completed on 21 April 2014, having acquired 466 square kilometres of 3D seismic data and 71 kilometres of 2D seismic data.

The objective of the seismic programme was to better understand the characteristics of the Koltogor oil field within the Koltogor Exploration and Production Licence in order to assist the Company in its field development plan.

The data is now being processed by Moscow-based independent geoscience company LARGEO. It is anticipated that the processing and subsequent interpretation of the data will be completed by the end of 2014, following which Zoltav's geological team, led by Dr Alexander Sokolov (Director Exploration), will determine the appraisal drilling programme targeted for the 2015/16 drilling season.

In addition to the 3D seismic survey, Zoltav completed limited testing of Well 141 in the southernmost part of the Koltogor Exploration and Production Licence. The testing of the Upper Jurassic Ju1-1 horizon was undertaken over a period of six days. Once cleaned, the well was tested using a 10 millimetre choke and flowed 32 cubic metres per day of liquids of which 16 cubic metres per day (approximately 101 barrels) was a crude oil of 43 degrees API.

This result corroborated the 2009 test data acquired from the previous operator when Well 141 flowed 29 cubic metres of liquids per day of which 13.6 cubic metres per day (approximately 86 barrels) was oil.

Koltogor 10

The Koltogor Exploration and Production Licence covers a contiguous area of 528 square kilometres within the original footprint of the legacy Exploration Licences. On 31 December 2013 Zoltav relinquished all but one of the remaining legacy Exploration Licence areas which surrounded the Koltogor Exploration and Production Licence but retained Koltogor 10 (a 167 square kilometre licence due west of the Koltogor Exploration and Production Licence) which the Company considers to be prospective. The Company was able to negotiate a zero cost extension to Koltogor 10 through to 31 December 2015.

Following completion of testing operations on Well 141 the work-over rig was moved to Koltogor 10 where it re-opened Well 103 with an objective to test both the Upper Jurassic Ju1-1 horizon and the Bazhenov shale formation. The well flowed 3.4 cubic metres of oil per day (approximately 21 barrels) from the Upper Jurassic formation without stimulation. This discovery was made in the same formation as the neighbouring Koltogor Exploration and Production Licence, however management believes the two fields are separated by a fault. The Company will apply to the State Reserve Commission ("GKZ") to register the discovery.

The Company also tested an interval of 2,670-2,700 metres deep in the Bazhenov shale formation and successfully recovered oil (calculated flow of 1.34 cubic metres of oil per day (approximately 8 barrels)) with the application of the instant depression method. This demonstrated the potential of the Bazhenov shale.

The Company is evaluating the best methods of testing and producing from the Bazhenov shale formation with companies with applicable experience of developing unconventional oil plays.

Competent Person's Report

The geological interpretation of the test results from Well 141 and Well 103, as well as the processing of the seismic data, has not been completed and as such cannot be included in the competent person's reports being undertaken by DeGolyer and MacNaughton in respect of the Circular, containing an AIM admission document, being prepared in connection with the proposed acquisition of Royal Atlantic Energy (Cyprus) Limited ("RAECL") (announced 16 December 2013) (the "Circular"). The Circular, including the DeGolyer and MacNaughton competent person's reports, is now expected to be published by the end of May 2014.

Symon Drake-Brockman, Executive Chairman, commented:

"The winter drilling season which ended last week has been extremely productive. We achieved all of our core objectives: being the acquisition of sufficient seismic data to form an appraisal drilling plan for the Koltogor Exploration and Production Licence; and conducted successful tests on both the Exploration and Production Licence and the newly extended Koltogor 10 Licence.

"Our operational focus at Koltogor now turns to analysis and planning over the coming months as we look to appraise this acreage; while in parallel we work to conclude the RAECL transaction and with it the acquisition of the Bortovoy Licence."

Qualified person

The technical information in this announcement has been reviewed by Dr Alexander Sokolov, the Company's Director Exploration. Dr Sokolov has 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 development company building a portfolio of assets in the CIS. Zoltav has a 100 per cent. interest in the Koltogor Licence located in the Khantiy-Mansisk Autonomous Okrug of Western Siberia. The Koltogor Licence contains the Koltogor oil discovery with probable reserves of 73,531,000 barrels of oil. Zoltav is engaged in an appraisal programme of the Koltogor oil field with a view to developing the field for commercial oil production.

In parallel with its operations at Koltogor, Zoltav continues to review other oil and gas acquisition opportunities across the CIS, with a particular emphasis on the Russian Federation.

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