Mongolian oil explorer Petro Matad has highlighted the following in its unaudited interim
results for the six months ended June 30, 2010 and in an update on events since
the end of that period.
– Initial drilling success from Company”s first exploration well
– Drilling program ongoing
– Funding secured to accelerate development of the Company”s assets
– Strong technical team appointed
– New institutional shareholders.

Since the end of the period under review, the company
has made significant progress in both its exploration and corporate activities.
The most important of these was the success of Davsan Tolgoi-1 which was then
followed by the closure of the recent fund raise. A proud achievement of Petro
Matad has been its being the first “in-residence” professional
western technical team in the history of Mongolian petroleum exploration. Petro
Matad now has the personnel, and contractors to take full advantage of the
exploration opportunities presented by its PCSs and drilling operations.
Drilling operations on the DT-2 well were completed on October 4 at a depth of
1,336 meters below surface.

Following the spudding of DT-1, the company commissioned a 2D seismic survey on
its Blocks IV and V in central Mongolia.  This is the first ever seismic
survey done in this region of Mongolia, a matter of considerable pride for the
company. Under Petro Matad”s management and supervision a Mongolian geophysical
contracting company, Khet LLC, undertook the 345-km survey, covering 7 seismic
lines.  It has now been completed and the results are being processed
before interpretation by an in-house professional team.

Seismic acquisition during 2010, rather than during 2011 as originally planned,
was the result of rapid advancement of the company”s geological knowledge of
the central Mongolian basins. The company”s in-house exploration team completed
field expeditions with the assistance of international and Mongolian experts.
These activities streamlined the exploration program and advanced the goal of
defining potential drillable targets in a much shorter time frame than
originally envisaged.