Tethys Petroleum Limited

Corporate Update

GRAND CAYMAN, CAYMAN ISLANDS--(Marketwired - March 2, 2015) - Tethys Petroleum Limited ("Tethys" or the "Company") (TSX:TPL) (LSE:TPL) is pleased to announce that it has signed a Memorandum of Understanding ("MOU") with PetroChina International Kazakhstan Ltd ("PetroChina") and also provide a corporate update to our shareholders.

Highlights:

• Updated vision and strategy announced focussed on capital discipline, the generation of cash flow from existing reserves and maturing exploration acreage
• MOU signed with PetroChina to explore the feasibility of a long-term and mutually beneficial cooperation in natural gas and crude oil deliveries
• Tajikistan 2015 exploration budget reduced by nearly a third
• Proceeds of US$6 million loan facility received
• Restructuring agreement with Georgian Oil and Gas completed, removing current funding obligations of approximately US$4million
• In Kazakhstan work is about to commence on the AKK14 and AKK05 workovers which are anticipated to be brought on stream in Q2 2015 and increase production to a planned level above 570 mcm/day
• Sales oil price agreed at the well head of US$13/barrel for January and February 2015
• An updated corporate presentation is now available on the Company's website www.tethyspetroleum.com

John Bell, Executive Chairman of Tethys, said: "I am happy to present the strategy and vision of Tethys under the new direction of myself and the Board. The signing of the MOU with PetroChina is another key step toward selling gas into the growing Chinese market and follows on from our recently published new independent reserve report stating an increase in our reserves in all categories. The current oil price environment continues to deliver new challenges for Tethys, as it does for the whole oil and gas industry. We have made a number of positive changes, extensively reducing our costs and also diversifying our revenue stream through our increase in production and pricing for gas. This provides some flexibility in these difficult times but the oil price environment remains volatile. The receipt of the loan funds provides important working capital for the Company until the expected completion of the Sinohan transaction which will recapitalize the Company. We look forward to updating our shareholders on our ongoing progress."