Ukrainian Appellate Court Rules in Favor of Cadogan's License Appeal

Cadogan has provided a further update regarding its Pirkovskoe and Zagoryanska special permits ("licenses").

Today, the Kharkiv Appellate Administrative Court in Ukraine ruled in favor of Cadogan, allowing its application to appeal against the Poltava Region Commercial Court’s earlier written decision of June 17, 2008 in respect of the Zagoryanska license and suspending the earlier decision pending the resolution of the appeal. Written confirmation of this ruling, and the setting of an appeal date in respect of the Zagoryanska license, is expected shortly.

This follows the Company’s announcement on August 13, 2008, that the Kharkiv Appellate Administrative Court ruled in favor of Cadogan and allowed it right to appeal in respect of the Pirkovskoe license.