Petra Petroleum Inc. Announces Definitive Agreement With Mitra Energy Limited - Seite 2

Immediately prior to the Arrangement, Mitra will consolidate its issued and outstanding shares ("Mitra Shares") on the basis of one new post consolidation share for each existing four (4) Mitra Shares held. In addition, Petra will also consolidate its issued and outstanding shares ("Petra Shares") on the basis of one new post consolidation share for each existing four (4) Petra Shares held. In addition, Petra will change its name to Mitra Energy Inc., or such other name as may be acceptable to Petra and Mitra. Pursuant to the Arrangement, Mitra shareholders will receive 3.0316 Petra post consolidation shares for each one (1) Mitra post consolidation share held.

Bridge Financing

Pursuant to the Definitive Agreement, Petra has agreed to subscribe for US$5,000,000 of senior unsecured convertible bonds (the "Bridge Financing") pursuant to a Mitra US$50,000,000 Senior Unsecured Convertible Bond Instrument, as may be amended, due May 10, 2015. A principal amount of US$40,900,000 was subscribed for by certain bondholders in May 2013. The bonds issued pursuant to the Bridge Financing will rank pari passu with the existing unsecured convertible bonds.

The closing of the Bridge Financing is subject to certain conditions, including the delivery of support agreements agreeing to vote in favour of the Arrangement executed by Mitra shareholders representing no less than 45% of the Mitra Shares.

In the event that the conditions are not met within 30 days of execution of the Definitive Agreement, the parties are able to terminate the Definitive Agreement.

Private Placement Financing

The Arrangement is subject to a number of conditions, including the completion of a private placement financing (the "Financing") for a minimum of US$20,000,000 and up to approximately US$50,000,000 on terms and conditions to the mutual satisfaction of Petra and Mitra, to be completed by way of a subscription receipt offering into Mitra which will close prior to the closing of the Arrangement. The subscription receipts will convert for no additional consideration into post consolidation shares of Mitra immediately prior to the Arrangement and such shares will be acquired by Petra pursuant to the Arrangement in exchange for post-consolidation shares of Petra based upon the same share exchange ratio described above. The net proceeds from the Financing will be used for: (a) exploring and developing existing assets and future other oil and gas opportunities; and (b) general working capital purposes.