Urals Energy announces completion of acquisition

Urals Energy has completed the acquisition from Finfund Limited (”Finfund”) of a 32.3% interest in OOO Taas-Yuriakh Neftegazodobycha (”Taas”), the principal terms for which were earlier referred on 28 November 2007.

In accordance with the Acquisition Announcement, the price paid for the 32.3% interest comprised US$440 million in cash and the issue of 22,738,034 shares of the Company to Finfund (the “Consideration Shares”). Application has been made for admission of the Consideration Shares to AIM and it is expected that the admission will become effective on 18 December 2007. Finfund has undertaken not to dispose of the Consideration Shares for a period of 180 days from today, subject to customary exceptions.

Also in accordance with the Acquisition Announcement, certain funds managed by Ashmore Investment Management Limited, a third party unrelated to the Company, have also completed their acquisition of a 10.5% interest in Taas. As referred to in the Acquisition Announcement, the Company will acquire a further 3.0% interest in Taas within 150 days from today and has an option to acquire a further 4.2% interest in Taas in January 2009.