InterOil Releases Production Update on South American Holdings

InterOil released the following information about the average production in May 2008, compared to the average production in April 2008.

Production in April 2008:

Peru: 2,862. Colombia: 1,655. Total: 4,517.

May 2008: Peru: 2,710. Colombia: 1,619. Total: 4,329.

The production is average daily production (bopd) and is working interest before royalty.

The decline in April and May is mainly due to the shut-in of wells undergoing enhanced oil recovery work.

Oil has been sold at average record sales price of $119.67 in Peru and $117.18 in Colombia per barrel during May, to be compared with the average price during Q1 2008 of $92.80 in Peru and $ 90.20 in Colombia.