Zoltav Resources: Revenues Up Operating Losses Down

Zoltav, the Russia and CIS-focused oil and gas exploration and production company, announces results for the six months ended 30 June 2015. The full report is available to download from the Investor Relations section of the Company’s website at www.zoltav.com.

Operational Highlights – Bortovoy

· Produced 46.6 million cubic feet (1.32 million cubic metres) of gas per day and 544 barrels (69 tonnes) of oil per day throughout the period

· Near-term objectives include the completion of a new well on the Zhdanovskoye field

· Company continues to assess scenarios to commercialise the Eastern fields of the Licence

Operational Highlights – Koltogor

· Registered an additional 546 million barrels (72 million tonnes) of Russian standard C1 plus C2 oil reserves for the Koltogor E&P Licence taking the total Russian standard C1 plus C2 oil reserves for both Koltogor licences to in excess of 1 billion barrels (137 million tonnes)

· Commenced the next phase of the appraisal programme for Koltogor, including drilling project preparation and land allocation activities

· Rosnedra confirmed the discovery of the West Koltogor oil field on Koltogor Exploration Licence 10 (Zoltav intends to submit an application for exploration and production status on this licence later this year)

Summary financials

· Revenues of US$14.4 million from production at Bortovoy (H1 2014: US$1.6 million)

· EBITDA of US$2.7 million (H1 2014: US$(6.8 million))

· First positive operating cash flow of US$4.7 million (H1 2014: US$(7.1 million))

· Operating loss for the period was US$0.4 million (H1 2014: US$7.2 million)

· Cash and cash equivalents at 30 June 2015 of US$9.9 million (30 June 2014: US$15.9 million)

Corporate Highlights

· Changes to board composition implemented in order to simplify the management structure and improve efficiency and effectiveness of decision making

· Denis Golubovskiy was appointed as Director Finance in July 2015 to strengthen the corporate finance function

Alastair Ferguson, Executive Chairman, commented

“I am pleased to report that Zoltav has continued to operate the Bortovoy Western Gas Plant at or near full capacity and maintained a positive operating cash flow throughout the period. Following its successful transformation in 2014 into a producing Russian/CIS-focused oil and gas company, Zoltav produced over 8,000 barrels of oil equivalent per day (1,100 toepd) in the first half of 2015.

“Our focus at Bortovoy continues to be on efficiency and maintaining full plant capacity; while also developing an appraisal strategy to capitalise on the undeveloped Eastern fields of the licence. At Koltogor, we are continuing to develop our planned appraisal programme.

“In line with the Company’s objective to grow the business through acquisition as well as organically, we continue to review a number of interesting opportunities in the CIS. We have strict acquisition criteria to ensure that future acquisitions will maximise shareholder value.”