Urals Energy: $41m Debt Claim Dismissed in Russia – Cypriot Claim Launch Expected

Urals Energy PCL, the independent exploration and production company with operations in Russia, announces that on 21 July 2014 the Moscow arbitration court dismissed the claim of UEN Cyprus Limited in respect of a case to recover the sum of US$41,652,000 from Urals Energy (the “Claim”) on jurisdictional grounds. Further details of the claim by UEN Cyprus Limited appear in the announcements made on 23 October 2013 and 21 November 2013.

Whilst the Company is pleased with the preliminary decision of the Moscow arbitration court, it has not yet received the final judgement from the court. In addition, given that the Claim was dismissed on jurisdictional grounds, it being between two Cypriot companies, the Board anticipates that it is likely that an appeal will be made and also that a new claim will be launched in Cyprus.

Urals Energy reiterates that it does not believe that the copy of a purported debt repayment agreement received by the Company to be a genuine document, and therefore does not accept that the Company could be bound by its terms. The Board will continue to pursue all appropriate actions necessary to defend the Company, including possible legal action in all applicable jurisdictions. Further announcements on this ongoing process will be made when appropriate.