Krasnoleninsky Project – Exploration Drilling Update

International Petroleum Limited (NSX: IOP) (“International Petroleum” or the “Company”), an oil and gas exploration company with assets in Russia and Kazakhstan, announces that it has commenced drilling a new exploration well.

The Company owns a 75% equity interest in the exploration rights to four blocks, covering a total area of 1,467 km, located in the Khanty-Mansiysk Autonomous Region in Western Siberia, the largest oil-producing region of Russia in Western Siberia (the “Krasnoleninsky Project”). During 2011, the Company drilled two exploration wells (Well number 1 in licence block 7 and Well number 2 in licence block 8 in the Krasnoleninsky Project and discovered commercial quantities of oil in both wells.

Now, the Company has commenced drilling Well number 4, which is an exploration well to evaluate the first prospect in licence block 10 of the Krasnoleninsky Project and is expected to take approximately two months to drill the well to its target true vertical depth of approximately 3,100 metres.

During 2012, the Company plans to drill two exploration wells (Well number 4 in licence block 10, which has just commenced, and Well number 3 in licence block 9, which is expected to commence over the coming weeks) in the Krasnoleninsky Project.

Commenting on the commencement of drilling Well number 4 at the Krasnoleninsky Project, Chris Hopkinson, International Petroleum CEO said, “This is the second of five new exploration wells that the Company plans to drill in 2012 and we look forward to the results of this drilling”.