Caspian Holdings Opens Credit Facility

Caspian Holdings has concluded an unsecured credit facility agreement to raise up to £1,000,000 at a rate of 4% over LIBOR from investors and major shareholders.

The credit facility will be drawn down in two tranches:

(i) the first tranche of £700,000 will be drawn down on 24 April 2007; and

(ii) the second tranche, available at the sole discretion of Caspian and for any sum up to the outstanding balance of the credit facility limit after the first drawdown, will be drawn down within 6 months of the date of the first drawdown. This second tranche is at this date uncommitted.

Participating investors have been granted 25 options over ordinary shares in the Company for every £1.00 invested in the facility as a commitment fee. The options have an exercise price of 4 pence and expire on December 31, 2010.

The loan is a short term facility to fund working capital and new project acquisition activities. It is intended that the facility is replaced with more permanent finance in the future following either the extension of the Zengeldy license area and/or new project acquisition. The loan will be repaid in full on the earlier of an equity raising or at maturity on 11 April 2009. Major shareholders including Chairman Michael Masterman have shown their support for the company in participating in the loan facility.

Export Quota

Caspian hopes to be able to restart exports in June following a temporary interruption to export activities. The Company has made selected domestic sales in the interim period from April 2007 and may continue to do so until exports are resumed..

Quarterly Production Update

Production for the quarter ending March 31, 2007 was 12,000 barrels.

Related Party Transaction

Masterman Investments Limited ("MIL"), a company related to Michael Masterman, a director of Caspian, and of which Michael Masterman is a director and sole shareholder, is a lender participating in the Credit Facility to the amount of £200,000 and will therefore receive 5,000,000 options as a commitment fee. The loan by MIL is therefore classified as a related party transaction for the purposes of the AIM Rules. Accordingly the Directors (other than Michael Masterman), having consulted with Grant Thornton Corporate Finance (in its capacity as the Company's nominated adviser), confirm that they are satisfied that the terms of MIL's participation in the credit facility are fair and reasonable insofar as the shareholders of the Company are concerned.