Tethys Petroleum Limited

Olisol Transaction Update

GRAND CAYMAN, CAYMAN ISLANDS--(Marketwired - Feb. 8, 2016) - NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO US NEWSWIRE SERVICES OR ANY OTHER JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF THE SECURITIES LAWS OF SUCH JURISDICTIONS. THE OFFERS AND SALES OF SECURITIES REFERRED TO BELOW HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933 AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION UNDER THE SECURITIES ACT OR AN EXEMPTION FROM SUCH REGISTRATION.

Tethys Petroleum Limited (TSX:TPL)(LSE:TPL) ("Tethys" or the "Company") today provided an update on the previously announced US$15 million convertible debt facility ("Interim Facility") with Olisol Petroleum Limited ("OPL"), a wholly owned subsidiary of Olisol Investments Limited (together with OPL, "Olisol").

Following the Company's announcement on 22^nd January 2016, Tethys received a further US$1 million on January 28^th, 2016. Olisol has now indicated that it believes that it can transfer an additional US$1 million by February 12^th, 2016. Olisol has stated on many occasions that funds would be forthcoming imminently, only for each of their own targets to pass without any transfer being made. There can be no guarantee that the further payment will be made by February 12^th, 2016 or that further funding will be received. Olisol has continued to inform the Company that the funds are subject to USD transfer restrictions imposed by the bank authorities in Kazakhstan, which have prevented further transfers within the contractually obligated timeframes.

Olisol have also indicated that in the near future they will be able to draw down on the facility with Bank RBK that was agreed to be the source of funding for investments in Tethys under the Letter of Intent signed with Olisol and announced by Tethys on November 9, 2015 ("LOI").

In a new development, Olisol has also stated that due to difficult business and banking environment in Kazakhstan they would like to renegotiate some of the key terms of the transactions envisaged in the LOI. This would include changes to the Facility Agreement for the Interim Facility and the Investment Agreement which the Company announced entering into on December 8^th, 2015. A further update will be provided to shareholders once the proposal has been fully clarified in its entirety.