Drilling Update

Urals Energy PCL

(''Urals Energy'' or the ''Company'')

Drilling update

Urals Energy PCL (AIM:UEN), the independent exploration and production company with operations in Russia, announces a drilling update in relation to well #112.

As announced on 14 January 2014, drilling on well #112 had reached a depth of slightly over 1,000 metres. Drilling subsequently continued but has been halted following a number of problems encountered in the drilling process and unacceptable results. Urals is currently evaluating its options in relation to well #112 and further announcements will be made at the appropriate time.

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