Adulis Obtains Extension to Salinas Drilling Commitment

Adulis Resources has received the approval of Ecopetrol to an additional extension to December 28, 2004 of its commitment to drill the first exploratory well on the Salinas Block.

The additional extension was obtained to permit Adulis sufficient time to secure an environmental license for the well from the Colombian government. Adulis is required to submit to Ecopetrol a copy of the executed drilling contract with respect to the well within 15 days of securing the environmental license.