Petro Matad has announced it is conditionally raising up to USD46.8
million before expenses through a placing and subscriptions for up to
22,483,878 new shares, primarily to accelerate its drilling program on Block XX
in Mongolia. In addition to the fundraising, the European Bank of
Reconstruction and Development
(EBRD) which at the end of 2009 took 17.5 percent stake in the company for a
USD6-million investment, will have the right to subscribe to as many shares as
required to maintain its stake in Petro Matad. Regarding the accelerated
exploration of block XX, the group now intends to test all three wells in it,
instead of the single test that was previously budgeted in 2010. Weather
permitting, Petro Matad plans to drill a fourth well as well in Davsan Tolgoi
in 2010. The group also plans to immediately commission further seismic surveys
in other parts of Block XX.

Petro Matad is the parent company of a group focused on oil exploration, as
well as future development and production in Mongolia. The group holds the sole
operatorship of three production sharing contracts with the Government of
Mongolia. The principal asset is the PSC for Block XX, a petroleum block of
14,250 sq km in the far eastern part of the country. The two other blocks, IV
and V are located in central Mongolia and jointly cover 71,040 sq km.