Pre-export short term loan finance arrangement

24 May 2018

Urals Energy Public Company Limited

("Urals Energy", the "Company" or the "Group")

Pre-export short term loan finance arrangement

The Board of Urals Energy (AIM:UEN), the independent exploration and production company with operations in Russia, is pleased to announce that it has entered into a pre-export short term loan finance arrangement with Petraco Oil Company Limited ("Petraco") under which Petraco has advanced the sum of US$5.0 million to the Company (the "Loan") ahead of the anticipated July 2018 tanker shipment from Kolguev Island.

The key terms of the Loan are that:

• it is repayable immediately following the loading of the tanker shipment of approximately 20,000 tonnes of crude oil, scheduled for July 2018;

• interest is chargeable at a margin of 5% over the two month US$ LIBOR rate up to the date of the bill of lading of the tanker, after which it reduces to 2% over the same US$ LIBOR rate; and

• it is secured by way of a pledge by Urals Energy over the shares that Urals Energy holds in JSC Articneft.

The proceeds of the Loan will be used by the Company for general working capital financing.

- Ends -

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