Urals update on Dulisma field

Urals Energy, a leading independent exploration and production company with operations in Russia, today announces an update on the development of the Company’s Dulisma field, East Siberia.

Highlights

• Successfully completed appraisal of well #105 with higher than expected flow results
• Second new drilling rig delivered to the field on schedule
• Completed preparatory work for the Central Processing Facility and began tie-in pipeline construction
• On track to commence exporting to the East Siberia to Pacific Ocean pipeline (“ESPO”) by Q2 2009

As part of the ongoing field development plan, the Company has completed the drill stem test of the vertical pilot hole of appraisal well #105. Following positive flow results, well logging is being conducted to thoroughly appraise the reservoir prior to drilling the planned horizontal well. Final completion of well #105 and hook up to production is expected by the beginning of June. Until such time as the Dulisma field is hooked up to ESPO, production from the field will be evacuated by a temporary pipeline and trucks.