Tethys Petroleum Limited

Olisol Transaction Update - Seite 2

Whilst the Company considers that Olisol is in breach of all the legally binding agreements made between Olisol and Tethys, as reported to the market on November 19^th, 2015 the Board of Directors of Tethys continues to believe that the transactions with Olisol are in the best interests of Tethys stakeholders and that Olisol is a strong in-country strategic partner.

Background to the Interim Facility

The Interim Facility was entered into with OPL on November 19, 2015, as the first transaction of those contemplated in the LOI. Under the terms of the Interim Facility, Tethys was entitled to draw down the corresponding funds within two business days of entering into the facility and, as announced on December 29, 2015, the Company submitted draw down notices for the entire loan amount of US$15 million on November 21^st, 2015. As previously announced, Tethys received US$5,138,918 in late November 2015 which was used to repay the US$5 million term loan from Nostrum Oil & Gas PLC as required under the conditions of the advance.

Current Financial Position

The Company currently does not have sufficient funding to meet its requirements over the next few months and therefore, if the transactions with Olisol do not proceed for any reason, the Company's ability to continue as a going concern will be dependent on the Company being successful in securing alternative funding. There is no guarantee that the Olisol transactions can be completed or that Tethys will be able to secure any alternative financing.

About Tethys

Tethys is focused on oil and gas exploration and production activities in Central Asia and the Caspian Region. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.

About Olisol

Olisol and its subsidiaries and affiliates have investments in energy and oil & gas operations in the Russian Federation and Kazakhstan. Olisol is incorporated under the laws of Cyprus and is headquartered in Almaty, Kazakhstan.

Disclaimer

Some of the statements in this document are forward-looking. Forward-looking statements include statements regarding the intent, belief and current expectations of the Company or its officers with respect to Olisol's access to funds, the Interim Facility, the placing to Olisol, potential alternatives to the transactions with Olisol and related transactions. When used in this document, the words "expects," "believes," "anticipates," "plans," "may," "will," "should" and similar expressions, and the negatives thereof, are intended to identify forward-looking statements. Such statements are not promises or guarantees, and are subject to risks and uncertainties that could cause actual outcomes to differ materially from those suggested by any such statements including risks and uncertainties with respect to completion of the placing and related transactions and receipt of proceeds, required shareholder approval and required regulatory approvals, use of proceeds, waiver of currency controls and receipt of funds pursuant to the Interim Facility.

No part of this announcement constitutes, or shall be taken to constitute, an invitation or inducement to invest in the Company or any other entity, and shareholders of the Company are cautioned not to place undue reliance on the forward-looking statements. Save as required by the Listing Rules and applicable law, the Company does not undertake to update or change any forward-looking statements to reflect events occurring after the date of this announcement.

CAMARCO (Financial PR)
Ginny Pulbrook/ Billy Clegg / Georgia Mann
[phone]

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www.tethyspetroleum.com