Production Licence Award

PRESS RELEASE

23 December 2010

Matra Petroleum plc

("Matra" or the "Company")

Production Licence Award

Production Licence Award

Matra is pleased to announce the award of the Production Licence for the Sokolovskoe Field to "OOO" Arkhangelovskoe, (a 100% owned subsidiary of Matra Petroleum plc). The initial term of the Licence is 20 years. (Until 31st December 2030.)

Matra's Managing Director, Peter Hind said:

"This is a major step for Matra and will allow us to renew our efforts to build a bigger business in the region.

The Production Licence confirms Matra's right to develop and produce oil from the Sokolovskoe Field for the next 20 years and is extendable thereafter. This will allow us to push ahead with the full development of the Sokolovskoe Field and to establish significant production and cash flow.

Our operations to restore production from wells 12 & 13 are proceeding and we will report progress in due course."

For further Information, please contact:

Matra Petroleum plc www.matrapetroleum.com

Peter Hind, Managing Director Tel: +44 (0) 7990 807855

Neil Hodgson, Exploration Director Tel: +44 (0) 7973 342822

Matrix Corporate Capital LLP Tel: +44 (0) 20 3206 7000

Louis Castro

Tim Graham

Pelham Bell Pottinger Tel: +44 (0) 20 7861 3169