As previously announced, the company is currently in the process of extending the Lelyaki license for an additional 20 years and an application has been filed with the Ukrainian authorities. As a result of the complete change in the Ukrainian government in the middle of April, the authorities’ processing times have been extended. The operator of the license has therefore not yet received a final decision by the authorities before the date that the original license expired. As a precautionary measure, the operator has resolved to temporarily shut in production until the relevant government bodies are up and running and ready to grant the license extension.

As previously announced, the 20-year Lelyaki license expires in May 2016. The operator Kashtan Petroleum’s specialists have completed the extensive geological and technical studies that form the application to extend the license for an additional 20 years. This work was started over a year ago and the application has been filed with the authorities for review.

On April 14 2016, a new Prime Minister was appointed in Ukraine. Following that, he formed a government consisting of a new Cabinet of Ministers, including the Ministry of Ecology, which together with the subordinated Geological Service grants prolongation of subsoil licenses

Due to the changes in the administration, the authorities have not been able to finalize the processing of the operator’s application to prolong the Lelyaki license before the expiration of the original license. The operator has therefore chosen to temporarily shut in production until the authorities are able to process the application. Within the next few weeks, the operator expects to receive information on when the authorities will be able to finalize the processing of the application. It is the opinion of the operator that the expiration of the license and the temporary shut in of production will not affect the granting of the extension.

For more information, please contact:

Robert Karlsson, CEO Zhoda Petroleum Ukraine AB

+46 709 565 141, robert.karlsson@zhodapetroleum.com

About Zhoda Petroleum

Zhoda Petroleum is an oil and gas company focused on exploring and developing concessions in Ukraine. Zhoda Petroleum’s wholly owned subsidiary has a joint venture with Ukrnafta (via Zhoda 2001 Corp) and Chornomornaftogaz (via Shelton Canada Corp). Zhoda Petroleum’s main asset is a 45 per cent interest in the producing Lelyaki field. The company’s oil and reserves amount to 8 million barrels of 2P. Zhoda Petroleum’s shares are traded on Pareto Securities OTC. For more information, visit zhodapetroleum.com.

This is an English translation of the Swedish original. In case of discrepancies, the Swedish original shall prevail.