Carpathian Raising Funds for European Projects

Carpathian Resources has agreed a non-brokered private placement of 8,000,000 ordinary fully paid shares at an issue price of 30 cents to raise a total of Au 2.4 million (approximately £1,065,000). The Placement will be made to Credit Suisse, Zurich, one of Switzerland's leading banks.

"Carpathian is on track to develop into a serious player in the European oil & gas market," said Carpathian Executive Chairman Maximillian Danishevski. "The restructuring of the company's board ... is being followed up by strengthening the company's financial support from world-class financial institutions, such as Credit Suisse."

The funds raised from the Placement will be used for due diligence on a number of potential projects in Europe, the CIS and the Middle East. Should the company enter into agreements with respect to any of these opportunities further details will be released in due course.

The company has entered into an agreement with Credit Suisse with respect to the placement and the company will issue the shares pursuant to a transaction specific prospectus, which will be announced prior to closing the transaction.

Carpathian is required to issue the shares pursuant to a transaction specific prospectus under the Corporations Act due to the temporary suspension of the company's shares on ASX for a period in excess of 5 trading days (which rendered the company unable to make use of the procedure in section 708A of the Corporations Act in respect of this placement).