Urals Completes Purchase of Interest in Taas

Urals Energy, a leading independent exploration and production company with operations in Russia, announces that it has completed the planned acquisition from Finfund Limited of a further 3% interest in OOO Taas-Yuriakh Neftegazodobycha.

In accordance with the Acquisition Announcement, the price paid for the 3% interest comprised US$50 million in cash.

The Company now has a total interest of 35.3% in Taas and, as referred to in the Acquisition Announcement, retains an option to acquire a further 4.2% interest in Taas in January 2009.